What is Term Insurance - And Why It Matters More Than You Think
The Concept: Pure Protection
Term insurance is the most straightforward form of life insurance. You pay a fixed premium for a set tenure and if you pass away during that period, your nominee receives a decent payout. If you outlive the policy term, there's no return. It’s not a savings plan, and it’s not designed to be. But it’s this simplicity that makes it so powerful and affordable.
Affordability That Buys Peace of Mind
A 30-year-old non smoker can secure ₹1 crore coverage for as low as ₹500 a month. That’s less than a weekend dinner or a couple of OTT subscriptions.
This minimal cost buys your family financial security in dire times. It’s about replacing your income so that EMIs, education, household expenses, and long-term goals are never interrupted. Learn more from Policybazaar, LIC, or Navdrishti Group.
No Returns? No Problem - It’s still a win-win for you
Term insurance is often misconstrued because it doesn’t provide maturity benefits. But it’s not meant to. It’s designed to offer financial protection at the lowest possible cost. That’s its biggest strength that you’re not just paying for investment returns but also for pure risk coverage. This makes it accessible and practical; especially for young earners.
Tax Benefits Included
Premiums paid towards term insurance qualify for deductions under Section 80C of the Income Tax Act, while the death benefit is exempt under Section 10(10D). So, you save money both ways, one- by securing your future and other by lowering your tax outgo. Platforms like ET Money and TaxGuru offer in-depth breakdowns of these benefits.
Enhance Your Cover with Riders
Many insurers allow you to customize your policy with additional benefits - known as riders. These include critical illness cover, accidental death benefit, and waiver of premium in case of disability. Riders ensure your policy goes beyond life cover and protects you against serious health and income risks. Companies like Tata AIA, ICICI Prudential, and Max Life offer flexible add ons or rider options.
Why You Shouldn’t Delay It
Most people buy term insurance too late, often in their 40s by which time premiums rise and policy approval becomes tougher. When you buy young, you lock in low premiums for the entire term.
For instance, the same ₹1 crore cover may cost you triple if you wait 10 years. With Navdrishti Group, it is never too late as it offers customized consultations and helps individuals choose the right plan tailored on the basis of income, lifestyle, and goals.
It Won’t Make You Rich - It Will Protect What You’ve Built
Term insurance isn’t an investment. It’s a financial shield. It doesn’t grow your wealth, but it prevents sudden loss from wiping out your family’s future. And sometimes, the smartest financial move isn’t chasing returns -it’s protecting what you’ve already earned.