Choosing a suitable 8 crore term insurance plan is a valuable asset for your family’s future. Being the primary earner in your family, you understand the importance of financial planning because life is unpredictable. Hence, planning helps ensure your family does not suffer financially in the unfortunate event of your demise. Let’s explore why implementing such a high-sum assured plan is important for your loved ones’ future.
Why Choose an 8 Crore Term Insurance Plan?
Term insurance is a smart and affordable way to secure your family’s future. Let’s explore four key reasons why it’s essential:
- Financial Protection for Your Family
The world is full of uncertainties, and as the family’s breadwinner, their well-being often depends on their income. A term insurance plan worth ₹8 crore ensures your family can maintain their lifestyle without financial struggles in case of your untimely passing.
2. Paying Off Loans and Debts
A car, home, or personal loan puts your family in debt if anything unfortunate happens to you. A term insurance 8 crore policy can pay these liabilities so your family does not face a heavy burden.
3. Shielding Against Inflation
Inflation impacts daily life by increasing the costs of essentials like education and other necessities. Proper financial planning, including investing in a term insurance policy with a substantial sum assured, such as ₹8 crore, can help protect your family from these rising costs. With this level of coverage, you can ensure your family does not suffer and struggle with their financial needs.
4. Tax Benefits
Another benefit of a ₹8 crore term insurance plan is the term insurance premium tax benefit. With a term plan in place, you can avail of tax exemptions on the premium amount paid under Section 80C of the Income Tax Act.
Maximising Tax Benefits with Term Insurance Riders
Enhance your term insurance plan by opting for add-ons or riders, which can also offer additional tax savings under Section 80D of the Income Tax Act. Common riders include:
- Critical Illness Rider: Provides coverage for major illnesses like cancer or heart disease.
- Surgical Care Rider: Covers expenses related to surgeries.
Premiums paid towards these riders are eligible for deductions under Section 80D, capped at ₹25,000 for individuals below 60 years and ₹50,000 for senior citizens.
How to Secure an 8 Crore Term Insurance Policy?
Securing a term insurance 8 crore policy is straightforward if you follow these steps:
1. Assess Your Insurance Needs
Start by evaluating your family’s current and future financial requirements. Consider these factors:
- Your Income: Choose coverage 10-15 times your annual income.
- Liabilities: The debts and loans should be listed so the family does not end up financially strained.
2. Research and Compare Plans
Not all insurers offer the same benefits, so research and comparison is essential. Here are two standard options:
- Pure Term Plans: These offer pure life coverage and have comparatively low costs.
- Term Plans with Return of Premium: They pay the premiums paid if the policyholder survives the policy period.
3. Use Online Tools to Compare Premiums
You can even compare the rates of 8 crore plans on the Internet. This makes it easy to decide which plan costs less and fits your budget.
4. Enhance Your Plan with Riders
Riders are add-ons that help to broaden coverage under your policy. Some helpful riders include Accidental Death Benefit Rider, Critical Illness Rider and Waiver of Premium Rider.
Conclusion
A term insurance policy of 8 crore is not yours; it is your family’s protector. It ensures your loved ones can pursue their dreams and navigate life’s challenges without worrying about finances. With the added benefit of tax incentives on premium payments, a term insurance policy is a wise and strategic choice for securing your family’s future.
Follow our WhatsApp channel
