According
to a Google India and Boston Consulting Group report, 75% of all insurance
policies will be sold online by 2020. Term insurance is the most favoured and
popular type of life insurance because of the specific term coverage and low
premium. It is advisable that customers buy this as early as possible in their
life, since not only is cheaper at a young age, its benefits are relevant at
every stage of life. Let's take a look why term life insurance in India can be
helpful at various stages of our lives.
Useful for Every Age
- Single and Earning: While most people believe that an insurance plan is best suited for
people with their own families or dependents, such plans are useful even for
people who are single but have a debt to payback, such as an educational loan
or maybe a car loan. In case of any unfortunate event, their loved ones and
parents won't be burdened. Furthermore, the term insurance premium is low and affordable at this time due to the
long term duration and minimal responsibility on the individual.
- Newly Married: The debt liability of people who have just tied the knot gradually
increases due to various expenses. For example, home and car loan or loan taken
for covering wedding expenses, etc. Also, with a new domestic arrangement,
where both partners are working, the functioning of the household becomes dependent
on two incomes. The loss of one partner after this stage affects the finances
drastically. Therefore, a term plan bought at this stage is a sound financial
investment.
- Middle-Aged Parents: Now that you have your children to take care of, term insurance in India will
ensure that even after you are gone, your child goes to college and completes
his/her education or perhaps have a corpus that can be used for their marriage.
Moreover, if you are the sole breadwinner of the family or are a single parent,
plans like Bharati
AXA’s Life eProtect are helpful due to the low premium
and payout benefits. Remember, the corpus left by you will help your family
take care of things until they adjust to a new income source.
- Approaching Retirement: By this time, you are either on your way to completing the expenses of your
children's future or are already done with the responsibility. If this is the
case, then it is the best time to ensure you have all the critical riders in
place, like critical illness or accidental cover. Since this is the time when
you are earning your life's maximum for the last few years, it is prudent to
add into the insurance as much as you can, so that your retirement is secure.
Whether
you are single or newly married, whether your children are in college or you
are just about to start your second innings, term insurance is advantageous at
all stages in life.