Why buy Term Insurance…? Never ASK again

Why buy term insurance plan...?So, Why do you buy term insurance…?

People run to buy insurance…

But have you ever wondered why they buy it in the first place…

I will tell you…

The no. 1 reason they buy the policy is to save tax.

If you ask them any further of what makes them buy insurance…?


I am dead sure you won’t get any answer.

The reason being people don’t know what they can achieve from their plan apart from saving tax.


To clear a bit of confusion, I will throw some light on why to buy insurance plan. Thus wasting no time further, let’s find out why you should actually buy term plan.

Reasons: Why you should buy term insurance plan…?

Why do you buy term plan...?

The first and the most obvious reason is:

1. You save a lot of tax:

Insurance policies provide great benefits to people who pay premium. And not only premium, an insured’s family also save’s tax on the lumpsum amount they get after the insured dies. Thus, there is lot of savings.


File copy from HDFC

In the wordings of HDFC:

  • You can save tax to a maximum of Rs.1.5 lacs.
  • As per Indian laws, you can receive tax benefits under section 10(D) and section 80C of income tax act 1961.

With insurance you are ought to only gain. Thus enjoy your policy with tax benefits.

Please Note:

Not all insurance policies offer tax saving benefits. Here is what Economic times says about the same.

Recent change

If your insurance policy’s life cover is less than 10 times of your premium paid, then you won’t get any tax benefits.

They explain this with a simple example:


  • Your annual premium paid is let’s say Rs.20,000/- and
  • If your life cover is over and above Rs.2 lac. then only you will be eligible to get tax benefits, otherwise not.

2. They are cheap:


Term insurance is really-really cheap. Infact they are the most affordable option you can get in the insurance industry. If you want to save more and spend less on your policy then buy young. When you are youthful then most likely you have less problems and this makes you pay less. As you age, your premium payouts also rise but still you pay less as compared to other insurance plans.

Here is what you will pay for a life cover of Rs.1 cr, if you are 25 and a non smoker.

What you will pay for 1cr. sum

Did you see…!

For a cover of Rs.1crore, you are just paying Rs.5500/- annually on average, which is very-very affordable. This means you are paying somewhere around Rs.500/- monthly or Rs.16/- a day. Now, what else you want with such a low price, as it is even cheaper then Mc Donalds Aloo tikki burger. It’s raining money for you… Grab it, before you age.

3. Financial security:

Financial Security

As has already been proved above that you pay a lot less then what you get.


You help yourself secure your family’s financial future. With just one rupee a day you are leaving an assured sum of Rs.1crore for your family. This is the best you can get and best you can do for your family. With this money they will be having good life to live, good food to eat and good education to get, for years to come.

4. Survival benefits:

Survival Benefits


You read right…!

You can have maturity benefits if you want to. To have them you pay a little extra in your premium. Simply buy return of premium rider. With this rider, the premiums you pay towards your life cover are actually returned back to you on maturity.

Thus, you have nothing to lose.

If an insured dies then his family is paid the life cover (i.e. Rs.1cr/- in our case). If he survives then his entire premium is returned, this is as simple as that.

5. Legal agreement:

Legal agreement

When you buy insurance then you enter into an agreement with an insurance company. This agreement legally binds the company to pay when the time arises. Thus,

The agreement is a sort of guarantee that your money will be paid when the terms of the agreement are satisfied.

Though the formality binds the company to adhere with the terms but it does not legally binds you.

You are free to follow any practice you may want.

Thus, if you would like to quite the policy by stop paying premium then you can and the company will have nothing to say. This way you won’t be accountable at all.

This makes me feel like saying:

“Insurance is a policy that only favors you.”

6. Claims are processed faster:

They are fast...

Term insurance is the simplest form of insurance policy among its category. This makes the policy not only cheap but easy to understand and less complex. Because of nearly no complexity at all, even companies don’t take much time to process the claim.


It is termed as the best policy not only from the consumer’s point of view but companies as well. Since there remains hardly anything to debate thus the turnarounds are much faster.

7. Best possible investment:

They are the best

There won’t be anything wrong, if I say that:

“Term insurance is one of the best and most profitable investments you can ever have.”

How, you may ask…?

Check out this:

If the profile of the candidate is like:

Name Sudhir Kakkar
Age25 years
Marital StatusNot Married

Now if Mr. Sudhir wants to buy term insurance for a life cover of Rs.1cr. then what will be his premium payouts?

Here is the result from policy bazaar.

Your best possible investment

Your premium payout will be close to Rs.6,500/- annually (approx, this is what on an average you will pay).

This means that you are paying Rs.550/- monthly or somewhere around Rs.18/- daily.

Now tell me:

Which financial institution can help you have Rs.1cr. with a daily investment on Rs.18/-…

Will there be any…? I don’t think so…!

Now if you are thinking…

“What will I do with such an investment if it is paid after I die…?”

Well you are right…!

But why don’t you think that your family will be financially secured and taken care off well when you don’t live.


If you want to reap benefits while you live then you can always try your hands on Return of premium rider. This service will return your entire premium paid over the years.

8. You always get the best plan:

They are the best...!

Insurance market today is really competitive. Today you can have your hands on the best possible policy with a click of a button.


Compare between different policies and plans and you will have the best one by your side.

Since term insurance is the most simplest of all, there premium quote will also be very easy to compare. As there won’t be any complexity and add-ons with the default plan, thus you will compare apples to apples.

9. Sense of Responsibility:

They fufill your responsibility

Every person living has some responsibility. Some have responsibility of their kids, their education and others have burden to pay off their loan.

Their biggest tension always remains who will take of their responsibility once they are gone.

But now no more, as insurance is only meant to take care of such events. Just buy it and you will feel kind of free from your responsibility.

“Term insurance is very useful not only for you but for your family as well. It has loads to offer. Thus buy it and you won’t regret investing in your life.”