You may often hear from your parents, colleagues, and well-wishers to purchase a life insurance policy to safeguard your future. Also, financial advisors and online advertisements may recommend you various insurance policies to secure the financial future. And, if you are looking for the best insurance, it is advisable to purchase a term plan.
Why term insurance must be your first step towards securing your future?
A part of your income goes towards meeting your regular expenses such as EMIs, children school fees, utility bills, groceries, etc. What is left after meeting the basic needs, you may save the same for future expenses like children’s higher education, marriage, retirement. Now imagine a situation where your family loses the income due to your sudden demise. How will they meet their expenses? In such a situation, the only option they may have is to dig into the savings. And, if you don’t have enough savings, they may face financial distress and struggle to make ends meet.
You can easily avoid such unwanted situations befalling your family by purchasing a term policy online with high coverage. A term plan secures your family’s financial future by offering a death benefit equal to the sum assured of the policy in the event of your demise during the policy period. The family can use the payout to meet their expenses and pay off the debts (if any). Since the sum assured amount is high, it can last for several years and help your family be financially independent even in your absence.
This benefit is particularly significant for newly married couples or those who have become a parent recently and for business people who have a considerable amount of liabilities. As a policyholder, you have the flexibility to determine the payout terms; you can either opt for a lump sum payout where the insurer will pay the total amount immediately after demise, oryou can choose staggered payment. In such a situation, the insurer will pay the amount in smaller installments at fixed intervals.
Being a pure protection plan, a term policy, covers only death, and the policy duration can vary from five years to 40 years; you have the flexibility to choose the tenure based on your specific needs. Also, since these plans do not offer maturity benefits, the premiums are affordable.
Apart from having an affordable premium, one of the significant reasons why many people prefer buying a term policy over other life insurance policies to secure their future is that it gives them the flexibility to change the degree of coverage over the policy tenure.
You can opt for a decreasing sum assured plan. Under this policy, the coverage amount decreases by a specific amount over the period. As you repay the debts slowly, you may not need higher coverage, and as the coverage amount reduces, the premium also becomes more affordable.
You also get the flexibility to extend the scope of your policy coverage by purchasing a rider for an additional premium. You can buy additional coverage options like critical illness rider or accidental death benefit rider by paying a small amount. These riders allow you to get coverage against risks that are not covered under the primary policy. And, in the event of your death due to chronic illness or accident, the family member will get an additional compensation apart from the death benefit guaranteed under the policy.
Final Word
Thus, with so many benefits, a term plan is vital to secure your family’s future. The high coverage amounts and affordable premium makes it a suitable insurance cover for all.
