What happens when the primary breadwinner or an earning member of the family passes away? Financial worries naturally take centre stage in these cases. This is why you should always have a financial blueprint that will help your family members cope with your absence. A term life insurance plan is really useful in this context.
Why You Absolutely Need a Term Life Insurance Policy?
It is vital to opt for a term life insurance plan due to these reasons.
- It represents the simplest and purest form of life coverage. Your nominees will receive an assured death benefit in case of your demise within the policy tenure. This will help them meet various costs and maintain their living standards in such scenarios.
- They can also use the money to meet regular household expenditures, while also fulfilling goals and dreams like higher education and weddings.
- In case you leave behind any debts, then the payout can also be used to clear off the same.
- Term insurance coverage is available for a comparatively reasonable premium. Thus, you can start early and obtain higher coverage for a lower premium, which will serve you well in the long run.
- You can add various riders to your term insurance policy. These may include everything from critical illness and terminal illness to even hospital care, premium waivers, and so on. These will require just a nominal premium addition and you can broaden the scope of your coverage minus any hassles.
- Term insurance plans are also tax-efficient since you can get benefits under Sections 10 (10D) and 80C, subject to meeting certain conditions.
- There are options to choose the premium payment frequency as per your convenience and also the sum assured payout type. You can opt for monthly installments, lump sum payouts, or a combination of both, depending on what your family will require.
Get Term Life Insurance for a Secure Financial Future
As you can see, whenever you start planning your finances for the future, it is best to start with a term life insurance plan. This will ensure greater peace of mind since you’ll know that your family is financially safeguarded even if something happens to you down the line. At the same time, it will also free you up to make strategic investments to meet other goals without worrying about the basic financial foundation of the household in the future. Make sure you start as young as possible in order to get the benefits of higher coverage for a lower premium amount.
Also, ensure that you calculate the coverage amount strategically. Include future household costs, higher education and other goals, and any other debts that you may have. Deduct your present savings and assets from this amount, and you will get the amount that you need to opt for in order to secure your family in the future. The calculation should be done keeping inflation in mind as well.
