How can a term plan go a long way?

By now, you have realised a basic fact about money: it never remains with anyone for long! As hard as you try, inflation and rising living costs cut into your budgets daily. Then there is the prospect of paying bills, your children’s education fees, house maintenance costs, groceries, travel, etc. You are unable to save as much or as regularly as you used to – and the situation just seems to get direr every day.

At the back of your mind is the worry that while you can tackle any curveball that life throws your way, can your family members show the same fortitude in your absence? Is there enough money in the bank? Are there sufficient assets you have created for their use in the future? If you were not around at a later date, would they be able to live their lives the way they already do – worry free and financially secure?

If you answer ‘No’ to any of the above questions, you know what you must do: buy a term insurance policy. Not only will it protect your family from every kind of financial setback in the future, it will give you much-needed peace of mind in the present moment.

These are just three of the many benefits of taking term plans:

1. Affordable. Term plan insurance is probably the most affordable insurance instrument available in the country today. Since the premium payments are low but the sum assured is high, the policy holder gets a valuable coverage. Term plans are excellent options for those who make a modest income but who would like to have adequate protection for the family.
   
2. Helps repay liabilities. The large corpus afforded by the term plan can be used in a variety of ways, right from running the home to paying off large debts. After the policy holder’s demise, creditors can come calling and harass the family members of the deceased for their money. Instead of facing creditors constantly, the family can simply use the term insurance money to settle all debts and dues.
   
3. Low risk proposition. A popular grouse against term insurance is that it does not provide any maturity benefits. Even the premium payments are low, so one might surmise that one may not even receive much tax benefit from investing in the policy. But when considered in the context of more expensive life policies, term plans are a lower risk because one can always afford to pay the premium. In the future, if you wish to discontinue the plan, all you stand to lose are the premiums already paid.