Term plans offer a high level of security for the times that your family is left picking up the pieces of its broken life.
Every person’s worst nightmare is an untimely death in the family. The event brings with it a high quotient of emotional and mental trauma. People can take a lifetime to overcome the grief of a loved one’s passing.
The problem is compounded when the deceased is the sole earning member of the family. Apart from the pain of losing the person, there is also the hopelessness that accompanies a sudden loss of income. How can one run the home’s daily expenses with no money? For how long will one’s savings last? With inflation rising steadily and every commodity becoming extremely expensive, how can families without an income hope to subsist without money?
This is where a useful insurance tool like term insurance comes into play. It’s one of the fastest growing products in Indian insurance today. Essentially, it is a high returns policy with low premium payments. Unfortunately, people pick this policy over others merely due to this reason – however, it has excellent benefits as well.
For instance, a term plan can safeguard your other securities and assets from being liquidated in case of a financial crunch. If the earning member of the family passes away and is a term policy holder, the high sum assured can be used to pay back unpaid debts, make a savings corpus for future and help in daily expenses. This can save the home from being sold to pay off debts or to have some money at hand.
Another benefit is that their affordability makes term plans an attractive insurance option for youngsters. When a person has just started his first job, he generally does not have a high salary. This means that he cannot invest in expensive insurance options. Instead, term insurance plans give a newly employed person life cover while he is building his career.
Traditional term insurance plans do not pay back the premiums paid on the termination of the policy (when the policy holder is deceased). However, some new term insurance policies pay back the premiums on termination. Find out the benefits, the claim settlement process and how much your sum assured will be from the insurance provider.
Above all, buy the best term insurance plan when you are young and do not actually need it. It will save the family when you are not present in their lives.