RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

Top 5 Reasons You Should Invest in Term Plan

down-arrow
5 Reason to invest in Term Plan
May 18, 2018

Table of Content

 

The new financial year has begun, which means one important thing for salaried individuals: annual increment letters. All the long hours and hard work you've been putting in for the last 12 months have finally culminated in a performance bonus. Naturally, the extra cash in your account opens up a whole new world of opportunities. And while spending your raise on a vacation sounds like the perfect idea, perhaps a more fulfilling reward might be to invest in the financial security of your loved ones.

Most experts recommend that at least 75 percent of the net bonus should go towards building a sizeable emergency fund. With a host of investment plans available in the market today, your increment can act as a gateway to the secure financial future of your family. One of the most sensible ways to achieve this is by investing a small fraction of your money in a term plan.

A term insurance plan ensures that your family is protected in case something happens to you. It is designed with the sole purpose of providing coverage against the risk of death. If you're on the fence about whether you should make this investment, here are five reasons why you definitely should:

  1. Buying Early Costs Less

    When it comes to insurance, the sooner you start investing, the lesser it costs. This is because there are fewer risks involved when you are young and healthy. As you get older, your susceptibility to medical conditions might increase. So, even though the sum assured in the coverage will remain the same, the rate of premiums will increase as you get older.

  2. The Premiums are Affordable

    Term insurance offers a high level of sum assured at extremely affordable premiums. For instance, a 30-year-old non-smoker male can avail a coverage worth Rs. 1 crore for 30 years at a monthly premium of less than Rs. 800! By comparison, a family pack of four pizzas would cost you just as much, if not more.

  3. It Offers Peace of Mind

    In essence, insurance is about building a safety net for the buyer. A term plan guarantees that in the event of a tragedy, the financial requirements of your family will be well taken care of. This peace of mind can have a highly positive impact on the quality of your life.

  4. It is an Expense Manager

    If you are the sole breadwinner and your family relies on you for daily expenses, a term insurance plan gives them the ability to fulfil monetary obligations in your absence. It will cover any unpaid loan you may leave behind and spare your loved ones the burden of debt, while helping them maintain the same lifestyle.

  5. It Provides Tax Benefits

    A term insurance policy makes you eligible for many tax benefits under sections 80C, 80D, and 10D of the Income Tax Act. This means that premiums up to Rs. 1.5 lakh per annum are exempt from taxes, as is the maturity amount or death benefit you receive.

The importance of a term insurance plan cannot be stressed enough. Not only is it an essential investment that will enhance your financial portfolio,but given the above returns, it will also vastly improve your family's quality of life at a minimal cost. After all, there is no greater reward you can give yourself than peace of mind.

Related Articles

Buy Term Insurance

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

4 Common Mistakes to Avoid When Planning to Buy Term Insurance

4 Common Mistakes to Avoid When Planning to Buy Term Insurance

Term Insurance is the kind of life insurance that gives you coverage for a specified period. Here are the mistakes you must avoid while buying a term plan!

What are the documents required to buy term insurance?

Top Secrets to Help You Choose the Best Term Plan

How to Choose the Right Premium and Policy Term for Term Insurance

Essential tips for selecting the right premium and policy term for term insurance. Learn about human life value, cost, riders, and more to secure your familys future.

How to Choose the Right Premium and Policy Term for Term Insurance
How to Select the Best Term Plan for Yourself? Previous
Reasons why you must take a term plan by the time you are 30 Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Popular Search

Popular Searches