Is it Good to Buy a Term Insurance Plan in 2025?

Unlike earlier buying a term plan is no longer a tedious task as it can be done easily online. It is important to choose the best term insurance policy and add it to your investment portfolio while planning your future investments.

So, is it a financially sound decision to buy a term insurance plan in the year 2024? Let us find out!

What do you Understand about Term Insurance?

Term insurance plan is a life insurance product that allows a cost-effective way to secure a family in case of the sudden demise of the policyholder. Term plans offer death benefits to the nominee when the insured is no more or when the insured dies (during the policy tenure). It is an ideal investment option as it is cost-effective and easily accessible. Moreover, since unforeseen situations do not come with prior notice, investing in a term plan is important. This will ensure your family’s financial crisis is handled even when you are not around.

Why to Buy Term Insurance?

Term insurance is an effective way to secure your family. Below are some reasons why one should buy term insurance in India:

High Coverage	All round protection	More savings	Tax benefits	Coverage up to 99 years	Protection from liabilities
Term plans allow the insured to get life coverage of a lump sum amount by paying a minimal price. So you can get ample coverage at an affordable cost.	The add-on benefits offered with a term plan, such as critical illness benefits, waiver of premium, and income on disability, are some such riders that allow the insured to protect against risks.	The premium amount of the plans is available at a reasonable price, especially if you buy the term plan at a young age. This helps in saving you money on premiums.	The insured can also avail tax benefits on the premium paid for a term plan.	Most term plans offer lifetime coverage of up to 99 years	In case of the sudden demise of the policyholder, a term insurance plan help the family members to pay debts, liabilities, etc.

What are the Benefits of Purchasing Term Insurance  Policies?

As already stated, there are several benefits of purchasing term plans. Some  of them are mentioned below:

1. Offers High Coverage/Sum Assured:

Term plans are simple life insurance plans available at a low premium price. Hence these policies are easy on the pocket. Buying a term plan at a young age will allow you to avail the plan at a low price. Further, buying plans online also allows further discounts and benefits.

2. Tax Benefits u/s 80D, 80C, 10(10D):

Term insurance aims to secure your family’s financial future. But it has another benefit as well, and that is the tax benefit. So, under term insurance, you can claim a deduction of up to INR 1.5 lakh under section 80C of income tax. Likewise, you can also claim a tax deduction of up to INR 25,000 u/s 80D of income tax if you are paying a premium for a critical illness rider.

Further, you may also note that the death benefit claimed by the nominee at the time of payout is completely tax exempted under term plans.

3. Easy to Understand Plans:

The term insurance policies are easy to comprehend, and thus they are mostly preferred by people. Term plans are pure life cover focused on financially supporting your dependents. A policyholder must pay the premium of the plan on time to continue availing of the benefits of the plan.

What Factors should be Considered While Buying a Term Insurance Policy?

There are several important variables which need consideration at the time of buying term insurance online:

• You should consider the coverage requirements of your family. Depending on the size of your family and the number of dependents, you can  decide the coverage amount you want for your term plan
• The next thing to consider is the tenure of policy that you are looking for. So, depending on your requirement, you can check for how many years you want to stay covered under the plan.
• Several additional riders are available with term plans, which you can opt for to enhance the coverage of your plan at a nominal extra cost.
• The claim settlement ratio is another crucial aspect that needs to be considered while buying a term insurance policy.