Getting a Term Insurance is extremely important because in case of a tragedy during the policy term, the policy payment will financially protect your family and help them maintain their lifestyle & take care of liabilities in the form of loans etc.
Do note that you may select a term plan variant with monthly income along with the lump sum payout, further helping your family with day-to-day expenses. Moreover, Term Plans can be extended to include disability & death due to accidents by opting for riders.
Let's also debunk some myths about term insurance. First and foremost, term insurance is not a waste of money or unaffordable.
For most individuals, term insurance premium would cost less than an egg daily. A term plan is a pure protection plan and it offers no maturity benefits, but consider the priceless benefits and "peace of mind" that comes from knowing you have taken a step that will financially protect your family even if you are no longer around. Along with the base cover, you can opt for additional coverage for accident, disability and disease with riders. Add to it the tax exemptions you get for the premium amount and this make it even more attractive.
Some term plans offer the option for monthly income along with lumpsum payout, covering immediate as well as day-to-day expenses, making term plans more comprehensive.
A Term Plan will financially safeguard your family against all financial liabilities along with an option to opt for day-to-day expenses cover. Anyone from 18 years till the specific eligible age can opt for a life cover. Experts recommend that you should get life insurance early on in life, as you start working, to avail the benefits of lower premium and the policy term should ideally cover your working years, understanding the fact that eventually, at some stage in life, you would need to plan for your family's financial security, even in your absence.
Some people have a mistaken notion that buying Term Insurance Online is a complicated process. In reality, buying term plans online is a stroll in the park and can be done in minutes on a site like www.policynation.com.
A term insurance is particularly relevant if you are the sole breadwinner of the family. In your absence, your family's financial security could be seriously hit. As the only earning member, all the current household expenses and your family's future goals are dependent on your ability to continue earning. In case of your untimely death, the income would stop, leading to an uncomfortable situation for your family. You can opt for a term plan with monthly income option that pays a lump sum amount as well as monthly payouts for 10 years to your family to cover the day-to-day expenses and continue to maintain their lifestyle.
Experts insist that a term plan is a definite requirement if you are servicing a loan or any other liability. Consider you have availed a Rs. 1 crore home loan and tragedy strikes. How will your family continue to pay the EMIs? This is where a term plan with a Rs. 2 crore life cover can help your family pay off the Rs. 1 crore liability and still maintain their lifestyle with the other Rs 1 crore.
"The “term” in a term insurance plan also lends flexibility. Continuing with the above case, if the tenure for the outstanding loan is 15 years, you can opt to discontinue the policy after the liability has been settled. However, you should ideally continue for a tenure that is at least equal to the no. of years left before retirement, to cover for your income," according to an well-known insurance company.
To summarize, a term insurance plan can be the reliable safety net you are looking for. A term insurance policy ensures your family is well taken care of financially in case of your sudden demise. You pay a small premium every year for a certain period of time to buy a ‘life cover’, and if you pass away during this time, your family is paid the amount promised to you by your insurer. PolicyNation understand that everyone’s needs differ, which is why you can select from a broad range of term plans from multiple companies. Have a look at your options and choose the one that fits the bill.
- B. John Bosco
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