Considering Rs. 75 Lakh Term Insurance? Here's What You Must Know About It
Updated On Oct 31, 2021
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Term insurance policies can act as a financial shield in case of an untimely demise of the life assured during the policy, as this type of life insurance policy provides a death benefit to the family in case of an untimely demise of the life assured. This is why term insurance policies are also known as pure protection plans. Quite often people choose a high sum assured for their term insurance cover which can be utilised to help their financial dependents/family members of the life assured to maintain a decent standard of living in the event of an untimely demise of the life assured.
Some people choose to have a sum assured of Rs. 75 Lakh which can help their family member fulfil their daily financial requirements and pursue their dreams in case of an unforeseen demise of the life assured during the coverage period.
What is a Rs. 75 Lakh Term Insurance Policy?
Rs. 75 Lakh term insurance policy is a term insurance policy with a sum assured/coverage amount of Rs. 75 Lakh. A death benefit is provided to the family of the life assured in case of an untimely demise of the life assured under a term insurance policy. Under a Rs. 75 Lakh term insurance policy a death benefit equal to Rs. 75 Lakh shall be provided to the beneficiary in case of an unforeseen demise of the life assured during the policy tenure. Some term insurance policies also provide a maturity benefit in case the life assured is able to survive the entire policy tenure, under such circumstances a maturity benefit of Rs. 75 Lakh shall be provided to the life assured at the end of the policy tenure.
Benefits of Purchasing a Rs. 75 Lakh Term Insurance Policy
Below mentioned are the benefits of purchasing a Rs. 75 Lakh term insurance policy:
- Peace of Mind: Purchasing a term insurance plan with a high sum assured of Rs. 75 Lakh will provide you peace of mind. You can ensure financial security for your family in the event of your untimely demise. A high sum assured can help you ensure that your family or financial dependents can fulfil their daily expenses and pursue their dreams even if the life assured is not around.
- High Sum Assured at Affordable Premiums: As compared to other types of life insurance policies, term insurance policies are quite affordable and this is a unique advantage of purchasing a term insurance policy. Some insurance providers offer attractive premium rates for a high sum assured. It is also advised that a person should purchase a term insurance policy at a young age to avail high coverage at low premium rates.
- Tax Exemptions: One of the major reasons for purchasing a term insurance is that you avail tax exemptions. One can avail tax exemptions under Section 80C and 10(10D) of the Income Act, 1961 as premium paid towards a term insurance policy qualify for tax exemptions. You can avail upto Rs. 1.5 Lakh of tax exemptions.
- Additional Coverage: Under a term insurance policy you get the option to increase the power of base cover of the policy. You enhance the coverage of the policy by adding riders to your term insurance policy which come in exchange of additional premium but also provide extensive coverage.
It is always important to select a sum assured for your term insurance policy, which is 10-15 times your annual income because this way you can ensure your family has financial resources to maintain a healthy lifestyle, fulfil their daily expenses and pursue their dreams in the event of your sudden demise during the policy term.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.