Are you the breadwinner of the family? Do your family members depend on you to fulfill their financial needs and goals? If yes, you should buy whole-life term insurance for the protection and betterment of your loved ones in your absence. In case there is an unforeseen event that may occur, your family members could go through financial turmoil. However, if you own a 100-year term insurance, your family receives guaranteed returns in the form of sum assured to secure their financial future.
Before purchasing a 100-year term plan or whole-life term insurance, let’s understand what 100-year term insurance plans are:
Whole-life insurance provides you with a death benefit irrespective of the age at which you pass away. The policy will last for your whole life, and your beneficiaries will be paid the total sum assured value either in a lump sum or monthly instalments. The choice of receiving the payout lies in the hands of your beneficiaries. A whole life term insurance policy is an excellent choice for you if you wish to obtain coverage for your entire life.
Now that you know what a whole life term insurance is, let’s understand why you should buy it:
In India, many people usually work until the age of 55 to 60 years, and they generally retire after crossing that age. Today, many Indians prefer working for years even after crossing the age of 60 years. In such a scenario, whole life insurance comes into the picture. With a whole life insurance policy, you can leave behind a sum assured amount for the financial security of your loved ones. Additionally, it offers other benefits to cover for the uncertainties of life.
Here’s a closer look at the whole life term insurance benefits:
- Offers coverage for life
Under a whole-life term insurance policy, you will be covered for your entire life, i.e. for over 100 years or more. There is no date of expiry for this policy since the risk coverage is offered for a lifetime. Even if you pass away at a certain point after 100 years, your nominees will receive an assured sum of money to ensure their financial well-being.
- Provides tax benefits
After purchasing a whole life term insurance policy, you can obtain tax benefits. Under Section 80C of the Income Tax Act, 1961, you can claim a tax deduction up to Rs. 1,50,000 on taxable income. Moreover, the maturity proceeds offered to your beneficiaries are tax-free under Section 10(10D) of the Income Tax Act, 1961.
As highlighted above, a whole-life term insurance policy will allow you to leave behind a legacy or an inheritance for your family members. Moreover, many people have financial dependents even in their old age. For such people, online term insurance will allow them to take care of those dependents even when they are no longer around and ensure their family goals are done.