Entrepreneurship is a journey filled with risks and rewards, but securing your family’s financial future should not be one of the uncertainties. In the fast-paced business world, entrepreneurs often need to pay more attention to their financial security while focusing on their ventures. This is where term insurance comes into play, offering essential coverage that ensures the well-being of your loved ones in the event of your untimely demise.
Here are five key reasons entrepreneurs should prioritise term insurance, with insights on how platforms like Policybazaar make it easier to find the right policy.
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1. Financial Protection for Family and Dependents
Entrepreneurs, unlike salaried employees, often lack the safety net of employer-provided life insurance. A term insurance policy guarantees that your family will not bear the financial brunt of your absence. For instance, a ₹1 crore term plan can offer your loved ones a substantial payout to manage expenses such as home loans, education costs, and daily living expenses, ensuring they remain financially secure in your absence.
Statistics: According to a recent Policybazaar report, the entrepreneurs segment in India saw a 50% year-on-year growth in sales of term insurance and considered it a vital part of their financial planning strategy to protect their families.
2. Debt and Liability Coverage
Entrepreneurs often take on personal loans or business debt to fund their ventures. In the event of an untimely death, these liabilities could be passed on to family members, adding to their emotional stress. Term insurance provides a financial safety net to cover outstanding business debts, personal loans, and mortgages, preventing financial strain on your loved ones.
Example: A 40-year-old non-smoker can secure a ₹1 crore term insurance policy for approximately ₹10,500 per year, ensuring adequate coverage for personal and business liabilities. (Source: Policybazaar.com)
3. Affordable and Flexible Coverage
Term insurance is one of the most affordable life insurance options, offering high coverage at low premiums. For entrepreneurs dealing with fluctuating income streams, the flexibility of term insurance, where you can adjust your coverage amount or add riders, makes it a cost-effective solution for long-term protection. These plans are suited for individuals of all ages, especially younger individuals, as they can secure a large cover at budget-friendly premiums.
Statistics: A major insight from the increase in term insurance sales at Policybazaar is that 74% of the new buyers are millennials aged 27 to 38.
4. Customizable Add-Ons for Enhanced Protection
Many term insurance policies allow you to add optional riders, such as Critical Illness or Accidental Death coverage, providing additional layers of financial security. These add-ons are particularly valuable for entrepreneurs, who often face greater financial unpredictability and health risks due to stress.
5. Tax Benefits
Term insurance not only provides financial security but also offers significant tax benefits. Premiums paid toward term insurance are eligible for tax deductions under Section 80C of the Income Tax Act, allowing entrepreneurs to save up to ₹1.5 lakh annually. Additionally, the death benefit received by beneficiaries is exempt from taxes under Section 10(10D), further ensuring that your family’s financial future is protected from tax liabilities.
How Policybazaar Simplifies Term Insurance for Entrepreneurs
As an entrepreneur, your time is one of your most valuable assets. Platforms like Policybazaar make it effortless to secure term insurance and life insurance by offering an easy-to-navigate interface that allows you to compare policies from leading insurers. Whether you’re looking for long-term coverage or term insurance policies with added riders, Policybazaar simplifies the process by enabling you to calculate premiums, evaluate benefits, and select the plan that best suits your unique needs.
With expert guidance and support at every step, Policybazaar ensures you make informed decisions to protect your financial future. Having helped over 10 million users choose the right insurance, it’s a trusted platform for entrepreneurs seeking comprehensive financial security for themselves and their loved ones.
Final Words
Entrepreneurs often face unique challenges, and securing your family’s financial future shouldn’t be one of them. Term insurance provides a simple, affordable, and reliable solution to protect your loved ones from unforeseen financial hardships. Whether you’re just starting your business or are already established, now is the right time to explore term insurance options. With platforms like Policybazaar, securing your family’s future has never been easier or more accessible.
