If you have dependents or financial responsibilities, if you're the primary earner in your family, or if you have outstanding loans, getting term life insurance is the best choice to financially secure your family.
Secure Your Family's Future with Term Insurance Plans
Everyone worries about their family’s financial security in case they are not around, especially if someone is the breadwinner of the family or has financial liabilities. However, living in the constant fear that there will be no source of income for their family in case of their untimely demise or if fall terminally ill, is not a solution; the best solution for a worry-free life is getting a term insurance plan.
Let's understand this with the help of a scenario.
Let's say you're a 35-year-old married person with two kids. You're the sole earner in the family and aware of the fact that any unfortunate event can occur at any time.
So, in case you meet with any unfortunate event, how will your family survive financially?
That's where term insurance plan will help. The policy provides the sum assured as a lump sum to your family in case of your untimely demise during the policy term.
The best part!
It is relatively inexpensive. You just have to pay a small price for the peace of mind that comes with knowing your family will be taken care of if something happens to you.
So, let’s see how term life insurance works if you have a family.
What is Meant by Term Life Insurance to Protect Your Family?
For your family to avail financial benefits after your untimely demise, you must buy the best life insurance from a trusted insurer. By paying a small premium every month or year, your family will receive a lump sum amount, also known as the death benefit, if you pass away during the term of the policy.
Your family can use this money to pay off loans, fund children’s education, their wedding and manage living expenses.
Also, term insurance plans are customizable to fit your family's unique needs. You can choose the amount of coverage, the duration of the policy, and even add term riders or add-ons to enhance the benefits.
What are the Features of Term Insurance Plan?
Here are some common features that each insurer offers in their term life insurance.
A term insurance plan covers the policyholder’s life and provides death benefit to their family, if policyholder passes away when the policy is still active.
One of the key features of term life insurance is that you can secure your loved ones’ financial future at a low price, especially if you buy a term policy at an early age.
Term insurance plan allows the policyholder to choose the premium frequency as per their needs and financial liabilities. They can also opt for different term policy tenures depending on various factors like the policyholder's age, medical history, dependents, etc.
High Sum Assured
Offering a high coverage amount is another feature of a term plan. It will ensure that your family receives the same type of financial support even after your demise.
You can customise your policy as per your needs and make it more comprehensive by adding optional riders. Some popular term insurance riders available are accidental death benefit rider, waiver of premium rider, critical illness rider, terminal illness rider, and more.
Different Types of Term Plans
There are different types of term insurance plans available to serve your unique financial and insurance needs. You can contact your insurance company and choose from level term plans, increasing term plans, decreasing term plans, convertible term plans, return of premium, and term plans with riders.
A term insurance plan also allows flexibility in terms of death benefit payout options. A beneficiary can receive death benefit amount as a lump sum, regular monthly income, increasingly monthly income, or lumpsum and income, depending on type of plan chosen.
How Does Buying Term Life Insurance Benefits Your Family?
Financial AidGetting a term insurance plan is the best choice one can make to ensure financial security for their family members after their unfortunate death during the policy term. Additionally, depending on the riders purchased, a term policy also helps financially in accidental, funeral expenses, medical bills, etc.
Comprehensive CoverageApart from financial help after the policyholder’s demise, term life insurance also provides coverage in unforeseen events like critical illness, accidental disability, etc., depending on your term plan chosen.
Flexibility for Life StagesYou can increase the life cover of a term policy as you reach the major milestones in your life. This helps you plan accordingly for different stages of your life like marriage, childbirth, car loan, home loan, etc.
Additionally, term insurance in India offers you the benefit of tax saving under Sections 80C and 10 (10D) of the Income Tax Act, according to your opted tax regime rules. So, you can keep your family financially secure, while simultaneously saving money.
Please consult your tax advisor if you are eligible for these tax benefits.
Peace of MindPeace of mind is the ultimate benefit you get when you invest in the best term life insurance. You and your loved ones won’t have to worry about the finances in the event of your unfortunate demise or think about the expenses incurred in case you are hospitalized or diagnosed with a critical/ terminal illness.
What to Consider Before Buying Term Plan to Protect Your Family?
1. Sum AssuredThe foremost thing to consider when buying the best life insurance policy is to estimate the sum assured you would want to provide your family with, after your demise.
2. Compare Premiums and FrequencyEvaluate different policies for their premium amounts and how frequently you would have to pay that premium – monthly or yearly. Choose the term policy that offers comprehensive coverage at an affordable price.
3. Available RidersLook for relevant riders or add-ons available with the term insurance policy you are planning to buy. These riders offer additional benefits and allow you to customise the policy based on your and your family’s various needs.
4. Duration of PolicyIt's better to opt for a term insurance policy that keeps you financially protected for the long term. Buying a new term policy when you’ve aged can be an expensive affair as most people fall victim to various health issues. These cause term policy premiums to shoot up considerably.
5. Claim Settlement Ratio
It is highly recommended to do your research on various insurance companies and then buy the term insurance plan from the one that has a high claim settlement ratio.
Thus, term insurance offers an affordable and convenient solution to help your loved ones financially, even when you're not around. So, don't delay; buy the best life insurance to secure their future.
Frequently Asked Questions
Your policy should consider factors like your income, financial liabilities, dependents, and future expenses to estimate the amount of coverage required.
Yes, most insurance providers offer the flexibility to customize your term insurance policy by offering you various term riders like accidental death benefit, critical illness coverage, or disability coverage to enhance the benefits.
The term insurance policy doesn't offer any maturity or survival benefits if you outlive the policy term.
Generally, individuals between the ages of 18 and 65 can buy any term plan. Beyond this age, a person is considered more prone to various critical illnesses, and hence, insurance companies may hesitate to offer them term plans.
Other Important Articles Related to Term Insurance
- This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
- All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
- Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.