The importance of having a life insurance cover is being felt across society. With uncertainties rising by the day and every family’s need for financial stability, the awareness that insurance coverage can help families deal with the death of a loved one, at least financially, is ensuring the growth of life insurance industry. More and more insurance providers are coming up with different plans catering to individual and varying needs. In such a complex marketplace it becomes difficult to select the right kind of a plan. Therefore, to keep things simple, buying a term plan is the best advice one can offer!
What Is A Term Plan?
It is the simplest of all life insurance policies that offer to provide death benefits in case the insured dies during the term of the plan. It is the purest of insurance plans that cover life. If the insured outlives the term, there are no maturity benefits involved.
Why Is It So Important?
Term plans are considered to be the ultimate plans that need to be part of your insurance bouquet. If you really want to live peacefully without worrying about your family’s financial future in your absence, you must buy a term plan.
For better understanding, presenting herewith are the top 5 reasons why you must buy a term plan, now:
1) Financial Stability
Death of the bread-winner of the family or one of the earning members of the family can turn life upside down for the rest of the family members. It becomes difficult to meet household expenses and take care of the needs of individual family members. Term insurance plans offer to pay the complete sum assured at the time of the death without asking any questions. This money can be kept in a fixed deposit or can be used to take care of routine expenses while the family can recover from their loss and plan to replace the insured’s income.
2) Safeguard Future
Everyone has certain obligations and responsibilities towards children, spouse, and parents. Death can put a full stop towards meeting these obligations. But with term insurance in place, one can plan their future accordingly. For example, the insured can keep in mind expenses towards a child’s education, marriage etc. and buy a term plan with the right amount of sum assured. In case he passes away, the funds from insurance can help his child to get the education and married without facing financial hardships. Similarly, parents’ old age and spouse’s life can also be planned adequately.
This is the age of loans and almost everyone has some or the other loan on their head. It could be a vehicle loan, home loan or a personal loan. The proceeds from term insurance plan at the time of death can be used to pay off these debts so that the family members are not stressed about taking care of such liabilities. It makes their life easier and a little bit stress-free.
4) Low Premiums, Massive Coverage
Due to the simplicity of the plan where there is no maturity benefits involved, the insurance companies are able to offer the customers a huge sum assured at dirt-cheap premiums. For example, you can buy an insurance cover of Rs. 1 crore for as little as Rs. 7000/- only! This helps to save money while getting adequate financial coverage and you can use the saved amount for other financial priorities. Also, if you buy these plans online, the premiums tend to go even lower since there are no agent commissions or administrative costs involved!
Even though term insurance only offers life coverage, for customers who want a bit more with their insurance coverage are offered additional riders for comprehensive life coverage. These could involve accidental coverage, critical illness coverage and the likes that can be availed by paying the extra premium. This ensures that you get maximum benefits of life insurance without paying through your nose!
Term insurance plans are the best bet when it comes to life insurance. The best way to buy them is to go online and search through various available term insurance plans. You can find complete information on a single website and after entering the relevant details like your age, smoking habits etc., you can sift through data and compare various term plans. It is important to study the plans in great detail, understand their terms and conditions and compare various plans based on not only the premium amount but also based on various features and benefits. Once you’re satisfied with a particular plan’s benefits and overall features, you can buy it online with just a few clicks, right from the comfort of your home.
If you want financial coverage to help your family members in your absence, life term insurance is the right financial tool for you. So compare term insurance & make the wise decision, now!