Term Insurance Plan
Term insurance is a pure life insurance product, which provides financial protection to the policyholder. In case of death of the insured during the policy period, the beneficiary receives a death benefit as defined under the chosen term insurance plan.
Why should you Buy Term Insurance?
People from all walks of life realize the importance of buying a term insurance plan best suited for their need. Amidst the fast pace of life and rising uncertainties in the form of COVID 19 disease, every family needs financial protection under a term plan to deal with the financial impact of losing a loved one, especially the breadwinner. It also helps the family in paying off the debts, such as car loan and home loan, if any.
Here are a few reasons why buying term insurance is worth it:
1. To Secure Your Family’s Future
Being an earning member of your family, you are responsible for the overall well-being of your spouse, parents, and children. Buying term insurance is essential to ensure that you meet the obligations for your loved ones even when you are not around.
2. To Protect Assets
You might have built assets like a home, office, or vehicles through loans. With a term insurance plan by your side, you can ensure that the load of these borrowings will not cause any hardship to your loved ones after you.
3. To Minimize Lifestyle Risks
The unfortunate demise of the breadwinner in a family can turn their life upside down, making it difficult to make ends meet. Term insurance benefits, on the other hand, can make the life of your loved ones easier in such a situation, though financially.
4. To Stay Prepared for Uncertainties
Uncertainties in life can make or mar our lives in unprecedented ways. This can be well understood while witnessing the current global Coronavirus pandemic. What a term plan does best is that it makes us stay prepared for such eventualities. You can opt for a significant life cover at an affordable premium under a term insurance plan.
Who should Buy Term Insurance Plan?
Death, disability, disease, all are realities seldom talked about. However, all three are realities we cannot possibly overcome with certainty. Term insurance is one tool, which can save you and your family from the financial hardships brought upon by these three and similar disastrous conditions.
Hence, all individuals who have financial dependents should buy a term insurance policy. They can be:
Parents
A term policy will act as a source of financial support for the children, ensuring that they do not miss life’s opportunities.
Young Individuals
Young professionals who do have many financial liabilities can benefit from lower premiums of term insurance plans.
Newly-married Individuals
With a term insurance plan, you can secure the financial future of your spouse, giving her a truly long-lasting gift.
Consider, for example, a family of four, where the father is the primary breadwinner and has bought a term insurance policy. The family needs about Rs. 50,000 a month to fund regular expenses like rent, food, other groceries, electricity, water, education fee, etc. Debts, if any, are over and above this.
In case of an unfortunate event, life continues, and so do these quintessential expenses. The family will still need Rs. 30,000 to 40,000 a month to meet all their needs. Here, adequate term insurance cover comes into the picture. It provides for the family with the following:
- A lumpsum to meet their immediate needs
- A regular income to meet their household expenses (if opted)
The loss of life cannot be compensated. However, a term insurance plan can help to tide over the financial requirements of a family.