Insurance industry is on the upswing today as the insurance subscribers keep growing. This is a result of the multiple benefits an insurance plan offers. However, among these insurance plans the one that offers the most is a specific type of term insurance plan. This specific type of term insurance is a fixed-income term insurance plan. These provide your family with a one-time payout plus fixed income for a period of few years, if something happens to you in the future. Today, we bring you a compilation of all the benefits of fixed-income term insurance plans you can avail when opting for one.
Benefits of Fixed-Income Term Insurance Plans
#1: Tax Savings
First off, opting for a term insurance plan of any type provides you with the benefit of tax deductions. While the tax deduction you can avail for such a plan is Rs 1.5 lakh, it still helps you in saving some money that will otherwise be just an expense to you. With cost of living going up, every penny you can save is worth it.
#2: Safeguarding Family
In case you don’t have a term insurance plan, if something untoward happens to you, your family may not be able to handle the resulting financial shock. Hence a term insurance plan is recommended. At least it will always protect you and your family from financial shocks that may arise in case you meet in an accident, at the very least.
#3: Securing Liability
In case you have taken a home loan, its repayment tenure can easily cross ten years. If something happens to you at such a time, the financial jolt to your family may be a huge. With fixed income type term insurance plan, at least the EMIs can be repay/help you repay the loan secured from the bank. This way, tomorrow, your family will have a home to call their won, if you are not around.
#4: Fixed income
The best part of a fixed-income term insurance plan is that it will provide your family a fixed income source. This is important if you are the sole bread winner of your family. This way, your family members will have some amount of financial independence in case something untoward happens to you.