Nobody knows what the future holds. You may be able to control your actions but deciding about life and death is beyond us. If you are unfortunately ever met with a life-threatening accident, have you thought about what will happen to your family?
It is not just you who’d be affected in case of your demise. Often, people who are dependent on you suffer more. Especially if you were the sole breadwinner of the family. Simply put, it is wise to secure your life well in advance.
Buying a solid policy with a term plan premium that is not too hard on your pocket, from a reliable insurance company, is the answer to all your queries of how to secure your life and ensure financial security for your loved ones. Most people are unaware of how important it is to take the best term insurance plan, while some choose to ignore the importance. So, with this article, let’s dive deeper into the importance of this insurance product.
What is a term insurance plan?
Term insurance is a type of life insurance that offers financial protection in the event of the policyholder’s untimely death. Term plan premium, which is quite inexpensive, can help you bridge that gap for decades. A death benefit will be paid if the insured dies during the period stated in the policy, given that the policy is active and effective.
Choosing the best term insurance plan
Even after you decide on buying a term plan premium to protect your family, it is crucial to choose the best plan for you. The insurance market is filled with several schemes, all extremely tempting at first glance. However, a wise person also reads up on the hidden details of these plans, including the benefits given to the nominees.
For instance, some policies give 100% of total premiums paid as the assured sum, while others give 105% for limited premium payment and 125% for single payment options. As such, reading the fine print is essential before making your choice.
Term insurance plans are tension-free. Your annual or monthly investment can prove to be life-saving for others. Term plan premium amount depends on what type of insurance plan you undertake. Instalments over your career age will help complete your premium amount. Not only this, some of the best term insurance plans like the iSelect Star Term plan from Canara HSBC Oriental Bank of Commerce Life Insurance have flexible conditions that agree to mend the premium amount as per changes in your life.
Understanding the importance of term life insurance
Still not convinced to buy the best term insurance plan for a secured future? These pointers below will surely convince you of how important it is to have a term plan premium.
1. Protect your family after your demise
Death leaves behind an aching pain and grief among your loved ones. On top of that, if your family has to struggle financially too, it can cause great suffering to them. A term plan can save your family from this. No doubt the deceased cannot return; however, a term plan payout may help in lessening the impact of the sudden trauma.
2. Pay for remaining or sustaining debts
Even after one’s death, some loans and debts continue to remain effective. With the breadwinner no more, family members may have to mortgage or, worse, sell their belongings to repay the debts. The loans may include house bills, personal loans, credit card dues, etc. A term plan payout can generously help in waving off these pending bills.
3. Help educate your children
It is a fact that education requires a considerable amount of money. Some of the best term insurance plans will ensure your child does not have to sacrifice their future due to lack of funds. With the payout money, your child’s education can be supported.
4. Act as the breadwinner even in your absence
In case your spouse or other family members are unable to get a job to fend for themselves, your term plan payout can become their source of income. From daily necessities to other financial burdens, the amount of your term plan’s payout decides how much you can help even after your death.
5. You will be remembered even after your demise
Time does not stop for anyone. After your death, family and relatives grieve for a period after which you might be long forgotten. Yes, there will still be a void in the hearts of your loved ones, but everyone eventually moves on. Now, buying the best term insurance plan will ensure that your family remembers how much you cared for them during your lifetime and after. People around too will commemorate you as a loving parent or child who deeply cared about those left behind.
Do you need an individual term insurance plan?
Most salaried individuals often depend on the insurance plans offered by their companies. This may seem enough then, but an amount 2 or 3 times your salary is not enough to help your family for a long time. Also, your term plan premium payment ends as soon as you leave the job.
An individual term insurance plan is seen as inexpensive when compared to other life insurance policies. Insurance gurus suggest the perfect age to get a term plan premium is between 30-35. Any more delay may hinder your chances of getting the most out of the plan. Some of the best term insurance plans have numerous such benefits. It is a long term investment that will guarantee your people a secured future.
If people depend on you for their daily needs, there shouldn’t be a second thought in your mind about getting a term plan. You can decide on the premium amount as per your current financial conditions and how much you can pay annually. Getting a plan is an easy process.
Today, most top banks and insurance companies that offer the best term insurance plan also offer online paperwork that hardly takes 30 minutes of your time. Imagine, just 30 minutes of your life can secure years, if not decades, of your family’s lives.