What is a Rs. 20 Lakh Term Insurance Plan?

Below mentioned are some of the key benefits of a 20 lakh term plan that one should keep in mind:

• Low-Cost, High-Coverage: One major benefit of the Rs. 20 Lakh Term Plan are the low premiums charged for the plan. However, this benefit of affordable premiums does come at the cost of a relatively low life cover benefit.
• Customisable Riders: You can choose and opt for add-ons/riders to get enhanced protection over and above the benefits of the base plan. While these usually require payment of additional premium, such riders can provide enhanced financial protection in various situations such as diagnosis of a critical/terminal illness, accidental death, partial/complete disability, etc.
• Tax Deductions: As per current tax rules the premiums paid for availing a Rs. 20 Lakh Term Plan qualify for tax deduction u/s 80C, if the policyholder has opted for the old tax regime. However, this tax benefits u/s 80C is currently not available under the new tax regime.
• Flexible Policy Terms: You have the option to select a policy term ranging from 5 years to 67 years (or longer in case of some plans) depending on your protection needs. This flexibility assists you in matching the policy tenure with your life’s different phases and your future plans.

Before making any purchase, it is natural to check avail options and compare them in order to find one that suits our unique needs. This also holds true in the case of a 20 lakh term insurance policy. Below are some of the key criteria you can use to make an informed choice:

• Assess Your Protection Needs: Analyse your current financial obligations (outstanding loans, average household expenses), the lifestyle of your dependents, and your long-term goals while calculating how large a sum assured you need. Based on this calculation it might be prudent to select a higher sum assured term plan than a Rs. 20 lakh term plan provided you can afford it.
• Choose the Right Policy Term: Decide on a policy term that align with your future goals and is the best fit for your family's financial needs. This can help ensure that the protection offered by the plan is available to your dependents till they can be financially secure by themselves.
• Check the Premium payable: Ensure that the premium payable for the Rs. 20 Lakh Term Insurance Premium is affordable in the long term. This needs to be considered in light of your current and expected future financial situation.
• Select Extra Benefits: Term plans are usually offered with optional riders and add-ons. These provide an extra layer of protection if certain eventualities occur such as diagnosis of a terminal/critical illness, accidental death, partial/complete disability, etc.

With a Rs. 20 Lakh Term Insurance Plan, you can be sure that your family will be protected during financial emergencies in case of your untimely demise. Whether you are beginning your career or planning to protect your family's future, this plan can offers life cover benefits to your loved ones at an affordable cost.