Last Updated on 13/08/2020 by Deepak Singla
Are you searching for the benefits of term insurance? Does the insurance plans cover the death of COVID 19? Can you apply for the insurance plans now? Well, if you have the above questions popping up in your mind then you have arrived at the right place!
Coronavirus or COVID 19 has been declared a pandemic by the World Health Organization (WHO). There are more than six million confirmed cases of coronavirus all over the world and nearly 4 lakhs of people are already dead.
Insurance is essential for everyone because it secures the financial future of the family. On the other hand, it has income tax benefits. 2020 seems to be the worst year out of all. Therefore, it is very crucial that you should have best term insurance plans with you.
There is a wide range of advantages of insurance plans that you must know in 2020. It is considered the most vital investment that you should do right now if you haven’t done it yet.
What are the Benefits of Term Insurance?
As already said above that insurance is vital for everyone. It is because you may not know when the world will end for you. The insurance will secure your financial future until the age of 99.
It will help your family to reduce the burden of financial stress that they have to face in your vacancy. Therefore, now not making you wait for any further, here are the benefits of term insurance that you must know in this COVID 19,
Return of Premium Option:
The insurance term does not provide any benefit on maturity. However, if you opt for the return of the premium option then you can get the maturity benefit.
But you will have to pay a higher premium if you survive the policy tenure. And the amount that would be returned will not include the modal amount paid on the premium, rider premium, levies, taxes, etc.
On the other hand, with or without maturity benefits, you can also online term plan calculator to estimate the premium of term insurance.
Accidental Death Benefit Coverage:
While buying the insurance plans, you can include the benefits of term insurance scheme with a random death rider if you want this to be included on the list.
It is important to include this term in the policy because accidental deaths can happen at any time and you must keep a backup so that you can raise these terms at any time.
Critical illness Coverage:
This is another benefit of term insurance plans i.e., critical illness coverage. It is obvious that you may get sick at any time and to provide all the necessary medical facilities can drain all your lifetime savings in no time.
If you are discovered with the severe illness included under the insurance policy then you will get a lump sum. With this, you can get all the necessary treatment without spending all your savings in one go.
Income Tax Benefits:
As per the provisions of Section 10 of the income tax act, the death benefit of term insurance plans is completely exempt.
As per the existing tax laws, the payouts also occur with tax privileges while the premium you pay for a term assurance plan is tax-deductible.
Based on your age and health, you can get the highest term insurance tax advantages under this segment by buying the plan for the highest term insurance tax profits.
Multiple Death Benefit Payout Options:
You will also get the option to receive a monthly payment income along with the lump sum amount as per some of the term insurance plans. With this income, it would be easier for your family to manage all the daily expenses in your absence.
In case of your unfortunate demise, your dependents will get a lump sum amount and this will help them to reduce all the financial burden to some extent.
You may be paying the EMIs of various loans that you have borrowed. The several payout options of the insurance term plans will play a crucial role if your financial liabilities will fall on your family members.
Easy to Understand:
There are several insurance life policies available that you will find a lot of difficulties to understand the specific terms. But with the insurance term, you will not find any difficulty to understand its policies. It is very easy to understand.
The insurer covers your life for a fixed duration to offer the term insurance profits if you pay the premiums. Therefore, this is another benefit that you will get from the term insurance plan.
High Sum Assured At Affordable Premium:
When you buy the term insurance plan online then you will get it into the lower price as compared to buying it offline.
The price of the term insurance policy is available at a premium cost which you can easily afford. This is one of the greatest advantages of the term insurance policy.
Does Term Insurance Cover COVID 19?
The answer to this question is absolute ‘Yes’. The insurance covers all the death cause reasons. If any person who passes away due to coronavirus pandemic and has an insurance policy then the nominee will get the sum assured as the death benefit.
However, if you do not have any insurance policy registered then you are free to apply right now i.e., during the COVID 19 crisis. From the comfort of your home, you can buy the policy online.
On the other hand, it is advisable to take medical treatments and get cured before applying for the insurance if you are suffering from any serious illness.
The Final Thoughts
Here you go! Now you know all the benefits of term insurance that can help you in the long run. Spending on insurance is a good investment that you can make to secure your future as well as your family members. Read all the features and benefits of term insurance carefully.
Mashum Mollah is a tech entrepreneur by profession and passionate blogger by heart. He is on a mission to help small businesses grow online. He shares his journey, insights, and experiences at Blogstellar.com. If you are an entrepreneur, digital marketing professional, or simply an info-holic, then this blog is for you.