Why People in Creative Professions Need Special Term Coverage?

For People in Creative Professions, it's Forever Feast vs Famine!

Akshita isn’t alone. Many individuals, especially the ones who are in the creative field, often face hurdles in finding work and managing their business evenly. The ups and downs of being in a creative field are inevitable, but with smart financial planning, financial security for loved ones and peace of mind for yourself can be achieved.

Term Insurance is a financial safety net for the insured and their loved ones.

Read on as we discuss term plans in detail and understand how it is a reliable choice for individuals in the creative profession.

What is a Term Plan?

A term plan is a type of life insurance that is designed to build life cover and offer financial protection for your loved ones. Under a term plan, the insurer promises to provide a death benefit in case of the insured’s demise during the policy tenure. Typically, a term plan does not offer a maturity/ survival benefit. The policy comes to an end if the insured outlives the policy tenure.

Today, there are term plans that offer financial protection to your loved ones. You can take a call about how you want the beneficiary to receive the death benefit. It can be in the form of monthly payouts, or a lump sum payment, or a combination of both. The decision can be based on your family’s needs and their ability to manage the payout.

Why Creative Individuals Rely on Term Insurance?

Creative individuals are often in search of insurance plans that can offer financial protection and peace of mind. Here’s why term insurance coverage is the right choice:

Affordable and Convenient Insurance Plan

Term plan stands out as a life insurance plan for creative individuals as it comes at an affordable premium and maximum coverage. Given the rising cost of almost every lifestyle expense, it is a term plan that can offer adequate coverage without making a huge hole in the pocket.

Monthly Payouts for Stable Income

Typically, a term plan is designed solely for life cover that provides death benefits to the beneficiary. However, with the changing needs, insurance companies are now offering special coverage that provides you the freedom to choose the policy payout. It could be a regular or a lump sum payout.

Did You Know that you can opt for a Return of Premium rider on your existing plan and get a refund of the premiums if you survive the policy term?

Death Benefits to Take Care of Liabilities

Whether it is for handling the business, paying off debts or ensuring that the loved ones meet their expenses smoothly, the last thing creative individuals want is to burden the loved ones with these responsibilities when they are not around. This is why term insurance is the right choice, as it offers death benefits to the beneficiary in case of the untimely demise of the insured. Death benefits are paid in a lump sum amount that is enough to take care of such liabilities.

Tax Benefits

One of the key reasons why creative people often go for a term plan as a life insurance option is that it offers amazing, impressive tax benefits. Under section 80C of the Income Tax Act 1961, premiums paid towards a term plan are eligible for a tax deduction of up to INR 1.5 lakhs. Similarly, death benefits under a term plan are tax-free under section 10 (10D) of the Act.

Did You Know that you can opt for a health rider on your existing term insurance and claim tax benefits under Section 80D of the Income Tax Act, 1961?

Peace of Mind

Being in a creative profession can be mentally draining, as you are mostly not doing a traditional desk job. Your urge to protect your loved ones becomes all the more urgent if you are the primary earner. Knowing that the financial needs of your loved ones will be protected, even in your absence, can bring peace of mind that is truly unparalleled.

To Conclude

A term plan is often regarded as a priority for individuals looking to purchase a reliable and robust life insurance policy. It is affordable, accessible and offers benefits that can ensure almost complete financial protection. Unlike traditional plans, term plans with Return Of Premium riders can offer you the assurance of a payout. As someone in the creative field, you can achieve a sense of financial security and peace of mind through term insurance.

Wondering which term plan is the right choice for you? Worry not and simply head to the Jio Insurance Broking portal to explore, compare and purchase a plan that best meets your requirements.