Is Term Insurance A Smart Investment?

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Is Term Insurance A Smart Investment?
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• Term Insurance is most popular and at the same
  time most misunderstood insurance products. Many
  people invest in term insurance just because
  their insurance advisor told them to do so. So,
  is term insurance is a smart investment to make
  as compared to other alternatives for the same?

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Standard Term Life Insurance

• It is the basic life insurance product which
  charges an annual premium to the policyholder. It
  pays out the sum assured on unfortunate event
  like death or fatal accident takes place. It does
  not carry survival benefit.
• Term Return of Premium Plan (TROP)
• This is an improved version of Standard Term Life
  Insurance, where the premiums paid are paid back,
  where the policyholder survives the term.

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Why you should opt for Term Life Insurance?

• Term Life Insurance is a necessity, because it
  will secure your familys future when you are
  unable to take care of them. Term Life Insurance
  provides the coverage where the insured passes
  away or in some of the cases, where the insured
  meets with an accident resulting in severe
  disability. Most of the Term Insurance Plans have
  a clause where the insured receives the money if
  he or she is diagnosed with any critical illness.

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• Term Insurance provides with that much needed
  cushion for your family, which will facilitate to
  manage day to day activities, even when you are
  not there to take care of them.
• Term Insurance plan provides tax benefits under
  section 80C to the insured. Additionally,
  premiums paid for critical illness cover will be
  eligible for tax deduction under section 80D.
  However, you need to consult your financial
  advisor for detailed benefits and their upper
  caps for claiming these deductions.

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• Flexible policy terms can do wonders for you. The
  insured needs to identify the appropriate time
  period, depending upon his age, family needs,
  preexisting diseases, etc. Longer tenure will
  allow the insured to enjoy cheaper premiums
  throughout the life.
• There are various types of Term Life Insurance
  like TROP or joint term life insurance, etc. The
  insured shall go over each type to locate the
  most appropriate type of term insurance. This
  will give an extra edge. For e.g. if any person
  opts for joint life insurance, then he will be
  eligible for cheaper premiums as compared to
  single term insurance. At the same time, the
  surviving spouse will have insurance cover, even
  where another is gone.

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Sourcehttp//www.financialhospital.in/blog/term-i
nsurance-smart-investment/