Need Of Term Insurance & Its Early Planning
by Ankita G. protect your lifeSecuring the best for families is a human trait. It will not
be wrong if I said that every person who loves his family want to secure its
future as well. Nowadays, we are surrounded by uncertainties, which are present
in every corner of our life. Hence, it has become absolutely essential to
secure family future and their needs. More so, if you are the single earner in
your family, then in the scenario of an accident, disability or death, have you
ever thought that what will happen to your family and who will take care of
their needs if you are not there. Apart from emotional support, they would
require a financial support as well to take care of the situation.
This is where a term plan comes into relevance. Here are
some of the reasons for you to opt for a term insurance plan to safeguard you
and your family’s future.
Delay Is Not Good
If you have already planned for buying a term insurance plan
but putting off the decision for some reason or the other, then it’s time for
you to get going. You must be aware that the savings which you hold in your
bank account would not be enough for your family to bear the loss of your
death. With this saving, they would be unable to meet the basic requirements
let alone additional expenses. Hence, it is better to use those savings in a
smart way and a term plan is the best way to go about it.
Term plan-cost
effective
You might not be aware, but a few years back, buying a term
insurance plan was very expensive. It used to costs around Rs. 50-60 thousand
per year as the premium amount for coverage of Rs 1 crore. However, now you can
get the same coverage at a nominal cost of around Rs 10000.
More the age-more it
will cost
Yes, it is a fact that with an increase in age, the premium
of the desired term insurance plan would also increase. There are many reasons
behind the same. However, the most common reason is health related. As the age
increases, the possibilities of having a disease also increases which makes it
difficult to buy a term insurance policies and even if you buy one, it would be
very expensive to afford. Hence, don’t waste your time and decide early when
you are young and can easily afford the premium amount and the coverage that it
offers. Compare online from a host of products available and do make sure to review
your term plan every once in a while basis your needs.
Your family would
love it
I really don’t know if you are going to buy a term plan or
not, but your family would love it for sure. It would be a great gift for them.
They would be happy when they come to know that you have taken this step for
them, for their security and a better future. It shows that you want to protect
them in every possible manner.
Bring peace of mind
It really feels awesome when you know that your life is
covered under a term life insurance. You will feel relieved for sure. A online term plan insurance would take care of all
your loans and liabilities as well.
How much you should
buy
Basically, the answer to this question varies from person to
person. It depends upon the amount of assets that you have. As per the thumb
rule, you must buy a plan which provides coverage in the range of 15 to 20
times your yearly income. Also check the family requirements which would be
enough to live a similar lifestyle after you are gone.
What should be the
best tenure of term plan?
Most people would go for the longest tenure. Tenure till
retirement + 5 years should be good enough. With retirement your expenses fall
and hence the financial reliance on your income also subsides a bit. So there
isn’t too much requirement of insurance as such.
Benefits of Online
term plans
Term plans are same whether it is available online or
offline. But if you purchase the plan online, then you get all the benefits at
the cheaper rate. It is advisable to buy term insurance plan online for the
following reasons:
– Low premium rates
– Less time taking
– Minimum paperwork
– Transparent
– No health checkup for some age groups
So now that you know the various benefits of having a term
plan, what are you waiting for? Start your search and find the best suitable
plan for you at any of the online IRDA Approved insurance aggregators. Buying
insurance and peace of mind was never so easy.
Source: http://www.policyx.com/blogs/need-of-term-insurance-its-early-planning/
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Created on Dec 31st 1969 18:00. Viewed 0 times.