Term insurance is a requirement for everyone, irrespective of their profession. Whether a doctor or an entrepreneur, term insurance can help you immensely. Hence, getting one of the best term insurance plans early on in life is extremely advisable. Take a look at this article to know why term insurance plans are beneficial for self-employed people, and if you are one of them, why you should get coverage as a priority.
Benefits of term insurance for the self-employed
As mentioned above, there are many benefits of term insurance for the self-employed. Here are some of them:
Easy eligibility
One of the biggest advantages of term insurance is its easy availability. If you are young and healthy, you can easily get term insurance plans without having to undergo tests and assessments related to your health and finances. Several other kinds of financial investments require you to have a certain amount of earnings and savings, but these things do not apply to term insurance. If you are young and healthy, not only will you get the plan easily, but you will also find it at great prices. Also, you won’t be subjected to pre-policy medical screenings, which would be an added advantage.
Low cost
As stated, term insurance plans are available at great rates, so you get a large coverage amount at a low cost. This is ideal because, as a freelancer or an entrepreneur, your earnings may be slightly limited. Paying a steep insurance premium at such a time becomes difficult, so term insurance helps immensely. You can get the cover you need at a price that suits your pocket. Financial management and budgeting are as important as having good insurance coverage, and term insurance for the self-employed allows you to achieve this balance. Compare the available options and select a good policy from a trusted insurance provider to ensure you get all the benefits.
Filling the void of employer coverage
Most salaried people working in established organisations get an employer-provided term insurance group cover. This is a big employment benefit that you may miss out on as a freelancer or solopreneur. However, term insurance helps you to bridge this gap and fill the void of employer coverage. You can buy one of the best term insurance plans for yourself and get sufficient coverage to safeguard your family’s financial future in your absence.
Financial coverage for the family after death
Life is unpredictable, and you don’t know what challenges lie ahead, so it is a very wise decision to buy term insurance coverage at the earliest. If you are the primary breadwinner of your family, you surely have many dependents. Do your kids depend on your earnings for their education? Do your parents depend on you for their healthcare expenses? Does your spouse depend on you for household expenses? What would happen to these people if you suddenly died? To ensure they have a financially secure future, you need to arrange for a corpus that can allow them to continue with their lifestyles even after you are gone. Term insurance for self-employed helps you to create a backup and ensure your loved ones are economically protected after your death.
Loan coverage
Have you taken a personal loan to start your business? Are you still repaying your home loan? Is a portion of your student loan still unpaid? If you have loans and mortgages as a freelancer or solopreneur, you need appropriate term insurance to cover the liabilities. You need term insurance plans that cover the entire loan amount, so that after your demise, your family members can use the proceeds to repay your loans. Without this cover, the entire liability will fall upon them, leading to several financial hardships.
Tax benefits
As a solopreneur, you would try to save every penny to help your business grow. At such times, tax-saving comes in handy. Get term insurance for self-employed as that allows you to save a lot of tax money. You get up to INR 1.5 lakhs tax reduction for the term insurance premium that you pay every year. This provision is available under Section 80c of the Indian Income Tax Act and is a very beneficial advantage for freelancers and solopreneurs looking for tax benefits.
The bottom line
Term insurance is not a luxury, it is a necessity. These days, you can find many impressive term insurance plans from the best insurance companies in India. Go through the options, look at the features, assess your requirements and then select the policy that matches your needs. Term insurance for self-employed people is a huge benefit that you should not miss out on.
