Can We Afford Not Having a Term Insurance Plan?

What makes your life happy and complete? A satisfying job can give you a handsome salary, a dream house can give you a beautiful place to stay, and a luxury car can make your travels easier! However, only a happy family can help you share your happiness and sadness, motivate you when you face difficulties, and be a constant throughout your life! Therefore, it becomes your primary responsibility to ensure that your family is content, happy, and secure.

You might ensure the availability of the funds necessary for your family's survival and the accomplishment of their plans in the long term. However, who or what will take care of these responsibilities in your absence? Well, a life insurance term plan can do this for you!

Now, do you feel you can afford not to have a term plan? Think again and read on for clarity on this. 

What Is A Term Insurance Plan?

A pure term insurance plan is a variant of life insurance that provides you with life coverage and helps you ensure the financial security of your family after your passing. The death benefit under a term plan can be a lump sum amount or regular income for a specific period.

Life insurance providers have introduced various flexible features in term plans to provide substantial financial assistance to your family in your absence.

For instance, with the Tata AIA term policy, you can increase the cover at different stages in your life based on your ascending financial commitments and earning capability. Additionally, you can get a return of premium on term plan paid as a maturity/survival benefit.

Many people think that a proper financial plan with adequate savings would suffice for their family members' financial security even in their absence. However, there are certain benefits only a term plan can provide. Therefore, a term plan can be very important in your life. 

Here's Why Term Insurance is Important?

A life insurance term plan provides extensive coverage, valuable features, and benefits that can enable you to have peace of mind with regard to your family's security. Here are some reasons why a term plan is important. 

1. For your family's emotional security:
   
   

   If you are the sole breadwinner in your family, your presence and financial support are indispensable for them. If you meet with an unexpected death, the emotional stability of your family goes for a toss. Firstly, they may be depressed with your sudden absence.
   
   

   Secondly, your life partner or the senior members in the family may start experiencing the stress of the entire family's financial future. The importance of term insurance plans gets relevant in such scenarios.
   
   

   Though the physical loss cannot be compensated in any way, the financial loss can be managed by a lump sum death benefit. It can also help your family have some emotional stability in the wake of your demise.

 

2. To assist your family in paying off debts:
   
   

   During your employment phase, you might have availed of home loans or car loans to raise your living standard. Such items serve as assets for your family. However, paying the corresponding debts is crucial to completely own the assets.
   
   

   In the wake of your sudden absence, the repayment of loans may become extremely difficult for your bereaved family. With the lump-sum death benefit provided by a term plan, your family members can pay off these debts to some extent, thereby reducing their financial burden.

 

3. To help your family handle their monthly expenses:
   
   

   If your family is heavily dependent on your income, then your financial support is critical to their survival. Therefore, when you are not present to provide for them, they may struggle to handle regular household expenses.
   
   

   With a term life insurance policy, you can opt for regular income for your family as the death benefit so that they can manage their monthly expenses effectively, at least until they have an alternate source of income.

 

4. To ensure enhanced protection with life insurance riders^#:
   
   

   Many of you may not know that a term insurance plan includes optional rider^# benefits. Riders^# can cover risks associated with accidental death, critical illness, terminal illness, etc. For example, the term insurance for critical illness with critical illness rider# can make the insured amount payable for your medication and treatment expenses during the policy term.
   

   As you grow older, the chances of a serious disease bringing instability to your health are extremely high. Therefore, ensuring financial stability to handle the expenses without affecting your family is very important.

 

5. For extensive coverage at affordable cost:
   
   

   A term insurance plan provides a substantial sum assured at an affordable cost. The premium amount and the sum assured are decided at the policy's inception. Insurers decide the premium considering the risk factors associated with your health. For example, at a younger age, the possibility of you having a pre-existing illness or any other major illness is very low. Therefore, the probability of death risk becomes extremely low, resulting in a lower premium rate.
   
   Hence buying a term plan at a young age can allow you to opt for a high sum assured at a feasible cost. Based on your different sources of income, you can decide to make a financial plan to list your short-term and long-term financial commitments and allocate a fund to term plan regularly. 

Conclusion

The financial security of your family is your responsibility, and a term insurance plan can help you ensure this even in your absence. A term plan can help your family manage their monthly utility bills and pay off their debts. This product is available at an affordable cost that you can plan at a very young age.

L&C/Advt/2021/Dec/2212