- Term insurance adequately covers the needs of the professionals in the field of IT
- Optional riders can provide additional coverage from the financial liabilities that may arise out of the hectic lifestyles these professionals lead
- Premiums paid for term life insurance are eligible for tax benefits under Section 80C of the Income Tax Act 1961
Professionals working in the Information Technology (IT) field, are an envied lot, the reason being excellent infrastructure in the workplace and a hefty pay package. Many people aspire to join their club in the pursuit of a better lifestyle. All of this is true, but it is a known fact that the life of an IT professional is extremely stressful. Long working hours, tight deadlines and demanding projects take their toll on the individual rather quickly.
The Pay Factor
A career as an IT professional almost always ensures a high compensation package. People joining this workforce are mostly young, focused and determined individuals who aspire to lead a higher standard of living. Confident and assured of their high income, most of them go on to take loans for the purchase of a home, car, etc.
These purchases immediately expose the professional and his/her family to financial risk. The loss of the sole breadwinner of the family would cause the dependent family members face financial hardships. In such cases, a term life insurance policy could potentially cover most, if not all of the financial liabilities.
Benefit of Riders
The fast lifestyle and long hours at work coupled with looming deadlines means that the work environment is stressful. Given that majority of the professional’s day is spent in this stressful situation, it could lead to chronic illnesses.* A Critical Illness Rider can be extremely useful in this situation, as it provides a cover for up to 25 critical illnesses including heart attack and cancer. A lump sum amount of the rider sum assured is paid to the insured, if he/she is diagnosed with any of the covered illnesses.
Premiums paid on life insurance policies are eligible for tax benefits u/s 80C of the Income Tax Act, 1961. The maximum amount eligible for deduction from taxable income under this section is ₹1.5 lakh. Under Section 80D, you can claim a deduction up to ₹25,000 for medical insurance premium installments, per budgetary year.
Even the pay-out that your family members will get in the unfortunate event of your demise will be tax-free under Section 10(10D) of the Income Tax Act 1961.
With these benefits in place, term life insurance plans are an essential financial tool for you and your family. Exide Life Insurance offers term plans that are affordable and come with the reinstatement feature. Head to our website to get a quick quote and stay protected.