Why term insurance needs to be a part of your financial plan?

A complete financial plan is one that helps to increase and protect your investments in the event of any force majeure. While growth can be achieved through various financial instruments, a term insurance plan helps protect your investments. If you are the sole breadwinner of the family then the term plan is more relevant.

A term plan protects your family in case of any contingency and helps them manage the significant risks involved if the family provider loses. It helps protect your old parents, acquire your children's education, and maintain the financial stability of your spouse. This helps in maintaining their standard of living in case of your absence.

The best thing about term plans is that they act as a ring of protection around your investment. This is because they are extremely inexpensive and therefore, will not affect your existing financial plans and in case of your absence, claim money will help your family to continue with the same investment plans. A good cover further ensures that your financial liabilities are taken care of along with supporting your family's day-to-day expenses.



Buying the right term plan at the right time is as important as the rest of your financial planning. According to experts, an ideal cover should be at least ten times your current salary. A multiplier of ten times also takes into account inflation. Another important aspect is to buy a term plan as soon as possible because a term plan chosen early in life can ensure you a large cover at a small premium. With ICICI Pru iProtect Smart Term Plan, you can get a cover of up to Rs.1 Cr. At just Rs.490 per month.

Remember to buy a term plan that gives you the option of critical illness benefits, as the cost of treatment for a critical illness can completely drain your savings. ICICI Pru iProtect Smart is a term plan that gives you the option to cover yourself against 34 critical illnesses. In this plan, you can cover yourself even till the age of 99 years. Additionally, you can save tax up to Rs.54,600. Under Section 80C and 80D ^ ^ and the claim amount is also tax-free.

Overall, a term insurance plan is a tool that you cannot miss at all. It is an essential investment and an important part of your entire financial portfolio.



Disclaimer:

* The above premium rate is for ICICI Pru iProtect Smart for a life cover of Rs.1 crore for a healthy male of 25 years for a policy term of 21 years with regular income payment option. The annual premium will be `5725 and the monthly premium will be` 490. Premium amount is included in taxes.

^ ^ 600 Tax benefit of 54,600 (800 46,800 u / s 80C &, 7,800 u / s 80D) Life insurance premium u / s 80C calculated at 31.2% including the highest tax slab rate (excluding surcharge surcharge) over a lifetime of ₹ 1. She goes. 50,000 and health premium u / s 80D. 25,000. The tax benefits under the policy are subject to conditions under sections 80C, 80D, 10 (10D) and other provisions of the Income Tax Act, 1961. Goods and service tax and cess, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made from time to time. Before doing the above, please consult your tax advisor for details.

© ICICI Prudential Life Insurance Company Limited All rights reserved. Registered with Insurance Regulatory and Development Authority of India (IRDAI) as a life insurance company. Registration. Number 105. CIN: L66010MH2000PLC127837 UIN 105N151V04. Advt No: L / II / 3089 / 2018-19



Reg. Answer: ICICI Pralife Towers, 1089 Appasaheb Marathe Marg, Prabhadevi, Mumbai 400025. Tel: 40391600. Member of Life Insurance Council. Please read the product brochure carefully before concluding a sale for more information on risk factors, terms and conditions. The business logo displayed above comes under ICICI Bank Limited and Prudential IP Services Limited and used by ICICI Prudential Life Insurance Company Limited for licensing. UIN 105N151V04. Advt No: L / II / 3089 / 2018-19

Why should term insurance be a part of your financial plan?