January 21, 2021

Why Self-Employed Individuals Need To Buy Term Insurance

Term Insurance

Term Insurance

Starting a new business venture has equal challenges as that of salaried employees. With a slow down in the global economy this year, many businesses have suffered financial losses. During such challenging times, many self-employed individuals have been carrying financial overburden in the form of capital venture loans and other personal loans to keep their business operations running.

More often, most self-employed individuals end up using their savings to keep the business functionalities running smoothly. However, to recover the loss of this year would certainly take many years ahead. During such time, whether you are a salaried employee or self-employed professional, future financial security is a must.

Utilising life savings for business can put yours and your family’s financial future in jeopardy. Therefore, it is wise for self-employed individuals to buy term insurance plans. Let us take a look at a few benefits of term insurance in India so that you can make an informed decision.

Benefits of Buying Term Insurance for Self-Employed Individuals

  • The primary purpose of buying term insurance is that it provides financial security to your loved ones after your death.
  • Most insurers allow you to enhance the scope of the policy with rider benefits. However, it is wise to opt for rider benefits that you think will come in handy in the future.
  • Term insurance also provides attractive tax benefits. The premiums paid towards the plan can be claimed for tax deduction under Section 80C of the old income tax regime. Plus, the death benefit received by your family after your death is tax-free under Section 10(10D) of the Income Tax Act, 1961.
  • Besides the tax benefits mentioned above, if you have a term insurance plan with critical illness benefit, you are eligible for additional deduction under Section 80D of the Income Tax Act, 1961.
  • Term insurance is affordable, and you can secure extensive coverage of up to Rs. 1 Cr at a nominal premium rate.

On that note, you can use the term insurance calculator to determine the premium amount charged on your desired coverage and rider benefits. So, now that you know the benefits of buying term insurance, here’s how you can buy the policy online.

How To Buy Term Insurance Online

The standard process of buying term insurance online is explained below –

  1. Visit the insurer’s website and go to the ‘term insurance’ section.
  2. Choose the type of term insurance policy you wish to purchase.
  3. Select your desired coverage and rider benefits.
  4. Review the term insurance premiums and policy details.
  5. Pay the term insurance premiums online.
  6. Submit and wait for the insurer to assess your application.
  7. Upon approval, the insurer will issue the policy in no time.

The Bottom Line

Times are challenging for everyone at the moment. Whether you are a self-employed individual or salaried employee, it is best to buy a term insurance plan. The policy helps you secure the financial future of your loved ones if anything were to happen to you during such dreadful times. So, take a step towards financial security with term insurance today!