Self-employment is rapidly becoming one of the top choices among job seekers and businesspeople. It is one of the few employment opportunities where you need not depend on others to pay you. You create your own job and your own profits. This sense of creation and self-satisfaction quickly ripples into other parts of life. That is why term insurance for self-employed is so desirable.
What is term insurance?
Term insurance is a type of life insurance policy which you can avail to secure the future financial well-being of your loved ones.
A term insurance policy is a highly affordable form of life insurance that is available with a very high sum assured as compared to the very reasonable premium rate. The policy tenure may vary from 10-100 years. Additionally, you can choose term insurance policies based on your financial needs.
Here is a list of the types of term insurance available:
. Increasing term plan – They increase the overall sum assured annually, which helps meet the rate of inflation in the future and increases your family’s financial protection.
. Decreasing term plan – They decrease the sum assured annually but use the money to repay lenders and reduce your liabilities.
. Level term plan – They are steadfast term insurance policies that abide by the terms and conditions agreed upon in the initial contract.
. Term insurance with return of premium – These are unique term insurance policies that offer maturity benefit if you survive the policy tenure.
. Single premium term insurance plan – They allow you to purchase a term insurance policy with all its benefits with a single lump sum premium instead of regular payments.
You can evaluate the pros and cons to choose the policy that best suits your needs and those of your loved ones.
What is GST, and how does it affect self-employed individuals?
Self-employed individuals have a lot of responsibilities. Aside from making a living to support your family, you also have financial responsibilities toward the government. This holds true in any country, but thankfully in India, the introduction of GST in 2017 simplified and streamlined the taxation process.
So, what is GST?
GST is nothing but the tax levied on goods and services in India. Earlier, before the government conceptualized what is GST, there were a number of taxes that you had to pay based on your type of profession and income. Now, the single goods and services tax has streamlined the tax that you need to pay so you never violate the taxation laws in the country.
GST has replaced several forms of indirect taxes. This is particularly beneficial for the self-employed as you have taxes levied on your income with variations. Instead, now you can acquire a GSTIN which helps simplify the process of filing your taxes. You can also avail of multiple benefits on term insurance premiums due to a streamlined GST process.
Why term insurance for self-employed is necessary?
Self-employed individuals are highly self-reliant. You create your jobs, make money, and take care of your loved ones. However, the income source may be unstable. Freelancing and self-employment bring you money as it corresponds to individual contracts. Therefore, dry months are a possibility during which you may need to acquire loans or credit. Savings or wealth development also takes time and efficiency.
In the event of your sudden, untimely demise, the liabilities of mortgages, debts, and household expenses transfer to your loved ones. Any outstanding business expenses are also your family’s burden to bear.
Here are a few top reasons why term insurance for self-employed is so important:
. It allows you to build a corpus for your loved ones to handle their future goals and ambitions.
. You can avail of single premium term insurance for self-employed. It helps you acquire the plan’s benefits using a single lump sum premium.
. You can avail of increasing term insurance that assures a higher sum assured. In the future, if your loved ones assess higher liabilities, then the higher sum assured can help navigate the burden without succumbing to the pitfalls of inflation.
. Term insurance for self-employed offers tax benefits which can help you save money while you prepare for your family’s financial security.
. Term insurance for self-employed is an affordable plan with a higher sum assured than most life insurance policies.
. It also helps you build a corpus for your golden years. Term insurance with a return of premium assures a lump sum maturity benefit that you can use for future financial crises.
. You can add riders to amplify the coverage on your term plan. These payouts help pay for medical expenses in case of accidental death, critical illnesses, etc.
Term insurance for self-employed is a safeguard that protects your loved ones after your death. It provides peace of mind knowing that your loved ones will be well taken care of despite the unstable income source and liabilities that you may leave behind.
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