Why should you consider term insurance as the first step towards a secured financial future?
Life is unpredictable because anything may happen at any time. Therefore, you should prepare your family to overcome unexpected events that will help avoid financial struggles. The only way to protect your family from uncertainties is by buying a term life insurance plan from a reputed insurer. This is because it will safeguard your family from medical expenses, accidents, inflation, and sudden demise. The term life insurance plans involve different plans, and you can select the right one among them after doing complete research.
If you want to ensure financial security and stability for your family, you should select a term insurance plan that fits your budget and requirements. It will help your family to avoid mental worries in your absence. Furthermore, you should choose a policy that provides regular income to your family even after your demise. A term life insurance policy offers not only the death benefit but also other advantages to your family. It is the first step to secure your family’s future from unwanted complications to live a trouble-free life.
10 Reasons why should you consider buying a term plan as the first step in your life?
- Secured Future
- Financial Stability
- Provides regular income to your family
- Additional Coverage
- Protection from Liabilities
- Coverage for Spouse
- Tax Planning
- Cost-Effective
- Investment Options
- Renewability
1. Secured Future
As an individual, you should focus more on setting your financial goals before marriage to help manage your future expenses. When you are single, you will take care of your parents and other members. However, things may change after your marriage, and you should consider providing a secure future for your children. With term insurance plans, you can plan your family’s future accordingly that will help you experience peace of mind to a large extent. In addition, they are ideal for your children’s education and other expenses, which give ways to lead a comfortable life.
2. Financial Stability
One of the main reasons to buy term insurance is that it provides financial stability to your family in the long run. Your children and spouse may face troubles during your absence, and they can ensure security in life with a term life insurance policy. In addition, it enables you to feel more secure in case of financial obligations.
3. Provides regular income to your family
A term insurance plan enables your family to get a steady income because it offers different payout options after your demise. Your nominee may choose anyone among them that will help manage expenses with ease. Some include one-time lump payments, one-time lump sums with fixed monthly payouts, and one-time payments with increased monthly payouts. Thus, your family can overcome the financial burden after choosing a payout option.
4. Additional Coverage
Buying term life insurance allows you to ensure more coverage apart from the death benefit that helps to gain more advantages. Some of them include accidental protection and critical illness benefits enabling you to manage high expenses. The coverage may vary depending on the policy type, and you can buy riders based on your choices. For example, your family gets coverage for partial disability and total disability caused by accidental injuries. Also, your family will receive compensation when you die due to an accident.
5. Protection from Liabilities
Your family will suffer from unpaid loans in your absence. Hence, you should know how to pay the outstanding balance after your death. A term insurance policy enables you to repay the remaining amount with decreasing coverage. The policy offers a loan redemption option with a decrease in the sum insured and equals the balance amounts monthly. It allows your family to pay off the remaining loan quickly to minimize mental worries and other problems.
6. Coverage for Spouse
Although your spouse is not an earning member, you should consider buying coverage for her to reduce financial constraints. For example, you can buy a joint-life cover for your spouse that will act as a single policy. It allows you to safeguard your children when both of you are not alive. However, you need to understand the terms and conditions in detail while buying a policy for your spouse.
7. Tax Planning
When you are the earning member of your family, you should think about the taxes as well. As a policyholder, you will receive tax-deductibles up to a limit of Rs.1.5 lakh per annum on the paid premiums. Likewise, your beneficiary will also receive the amount under the tax-free section.
8. Cost-Effective
It would be best if you considered buying term insurance online because it lets you save your time and money. Several companies offer high discounts on plans allowing you to reduce expenses significantly. Moreover, you can compare them easily to help you select a plan that suits your budget and needs. Buy a plan with a high insured amount to ensure more coverage for your family during your absence. It would be best if you considered inflation while buying a policy online.
9. Investment Options
The term plans offer investment options, and you can make more money from them that will increase your cash flow. They won’t affect your coverage in any way enabling you to generate more income. At the same time, you should know how to invest money in the markets from different sources that will help you gain more ideas.
10. Renewability
You can renew your term life insurance depending on your needs that give ways to secure your family from financial obstacles. At the same time, the prices may increase, and you can compare them online to get the right coverage for your family.
Buying a new term insurance plan involves several aspects, and you should keep them in your mind before investing money. Some of them include age, tenure, income, number of dependents, and premium prices. You should read the terms and conditions of insurers while buying a policy. It is wise to calculate your premium amount correctly before picking a plan. A reputed insurance company will guide you to select a plan with an excellent customer support team. Apart from that, it even gives ways to buy a plan at affordable rates that help your family stay away from financial troubles and other problems.
