With a growing awareness amongst the masses, more and more people have started opting for a term insurance policy. When it comes to securing the future of one’s loved ones, a term insurance plan emerges as the one and only ‘pure risk protection cover policy’.
A pure risk protection cover is termed as the ‘only death benefit plan’, which covers the loss of life. It promises financial security to family members and loved ones in case the insured succumbs to death, in addition to other term insurance benefits!
What Exactly is a Pure Risk Protection Cover?
The purpose of pure risk protection cover is to provide a way for the life assured to protect the beneficiaries financially against untimely death. If the policyholder dies during the contract term mentioned, the nominees will get the sum amount assured. Otherwise, there will be no payout if the policyholder survives the term.
Pure death risk cover-term insurance covers the insured if he or she dies untimely or prematurely. Term life insurance policies such as the Tata AIA policy provides financial stability for the insured’s family or the nominees in the event of their untimely death. Apart from this, there are several other best-term insurance plans in India that one can opt for on the basis of one’s capacity and requirements.
Benefits of Choosing Term plan – Pure Risk Protection Cover
As life is unpredictable, it is essential to make a wise move by opting for a term insurance plan. We have listed a few term plan benefits that make it an ideal pure risk protection cover for one’s family members. Read more and know about the benefits in detail:
Term plans are customisable. Policyholders can set the coverage, payout options and policy term period per their preferences and requirements. You can decide whether you want the lump sum payout or income replacement term plan. An income replacement term insurance plan may be a good option if your family members cannot handle a large sum of money. Set the options as per your preferences.
- Financial security
This is ideal for those who are the family’s sole earning member and seek a way to provide stability in an emergency. If the policyholder passes away untimely, the dependents can use the sum assured to pay off any sort of obligations they have financially.
- Multiples add-on riders
With the base coverage of the term insurance plan, policyholders can add multiple riders, including accidental, disability or illness riders. Riders are optional, but you can use paid features of term plans to broaden coverage.
- Simple product
One can simply take an online term insurance plan. There is not much hustle in the process. In fact, information about different term plans can be accessed online. One can browse different term plans or policies and buy online term insurance plans at one’s convenience.
Income Tax Act Section 80C allows you to deduct the premiums paid, and Section 10(10D) allows you to claim the payouts tax-free. The term plans are exempted from tax.
Now that you are aware of the benefits which a term insurance plan imparts as a pure risk protection cover, one should not delay in opting for it. Now, one can research different term insurance providers and go for the one which ensures a promising claim settlement ratio. Lastly, one should read the documents well and then sign accordingly.