If You Love Your Family, You'll Buy This Product Right Now to Protect Them

Sixty-five percent of the parents spend nearly half their yearly income on their child’s education, according to a survey conducted by ASSOCHAM. The same has been highlighted in an infographic published in The Financial Literates in September 2014. The fact that you are able to meet day-to-day expenses might lead you to think that you are financially strong. More often than not, individuals do not plan their future finances, which is a grave mistake. And this mistake is only realised when a financial emergency befalls you or your family. Have you ever thought of how would your family meet their daily expenses after your demise? Will your family be able to afford to send your children to their dream college? Life insurance is one of the most important tools for future financial planning. It provides financial security to your family in the event of your untimely demise.

Benefits of Term Life Insurance

Term insurance is considered to be one of the most suitable products for the job. It is a pure vanilla product, without any investment element, unlike other insurance policies. Because of this exclusive feature, pure products offer higher cover at lower costs. Here is what this product can help you achieve.

1.  Provides for Your Family’s Day-to-Day Expenses – Insurance can help your family avoid a financial crunch on top of the trauma of loss, while also being able to maintain their standard of living. No insurance on the other hand can force them to cut on necessary daily expenses. You must consider taking a cover 8 to 12 times your annual income. Also, factor in the inflation rate.
   
2.  Provides for Your Child’s Education – Sufficient cover can help provide for your child’s education and give him/her the opportunity to avail the best of educational facilities without worrying about funds.
   
3. Repay Your Debts – Term insurance plan is a must if you are repaying loans or other debts. In case of your death, the sum assured can be used to pay off your debts. It is essential to buy a policy for a minimum term, during which you hope to repay your loans.
   
4. Provide for Financial Emergencies – Apart from financing your family’s daily expenses, it can also provide for financial emergencies such as child’s marriage or house repair and more.
   

The good news is that you can buy more than one term policy and nominate a specific beneficiary for each. For example, you can buy one for your parents and another one for your spouse and children. However, it is wise not to spilt it too many times because that would increase the premium burden.