Term Life Insurance – An Inevitable Requirement for Your Financial Planning!
A Term Life Insurance is the purest yet flexible form of life insurance. It provides a death benefit in terms of insurance coverage against the premium amount paid for a fixed tenure. There are no hidden charges or clauses in term insurance, making it the simplest of all the life insurance policies. Term Insurance is not an investment product; thus, you do not get any maturity benefit from it. Another good thing about Term Life Insurance is convertibility. Yes, you heard it right! It is easily convertible in any other insurance plan.
The Primary benefit of Term Life Insurance plan is that it offers a substantial amount, or the sum assured to the nominee of the policy in case of the untimely death of the policyholder. It comes with the flexibility of adding riders, which is making it more reliable and attractive. There are various riders available in the market like Critical Illness Rider, Permanent Disability Income Rider, Accidental Coverage Rider etc. You can select the rider which is best suitable for you as per your requirements and add it to your term plan on minimal charges along with your base premium.
Here is How Term Life Insurance is better than other life insurance plans?
|Benefit||Term Life Insurance||Other Life Insurances (Endowment Plan, ULIP etc.|
|Term Duration||1-30 years||1-30 years|
|Premium Amount||Lowest premiums are paid.||10x costly premiums are paid as compare to Term Insurance.|
|Death Benefit||It provides death benefit to the family of the policyholder.||They do provide death benefit, but the cover is quite less as compare to term plan.|
|Maturity Benefit||This is a pure Life Insurance plan and does not provide any maturity benefit.||They do provide maturity benefit but again the amount is quite less.|
This table clearly shows how Term Life Insurance is a better option to make your financial planning stable. A subtle investment in Term Plan can give your family a brighter and better tomorrow and mental peace to you in the present time.
Why Term Insurance is an inevitable requirement for you?
Till now, we have the clarity of what term life insurance exactly is and how it is better from the other available life insurance plans. Let us now focus on its necessity in your financial planning.
Following are the factors which make Term Life Insurance need of the hour:
- Life Expectancy: According to the latest WHO data published in 2018, life expectancy in India for males 67.4, females 70.3 and total life expectancy is 68.8 which gives India a World Life Expectancy ranking of 125. Our life expectancy ratio is decreasing, and it is scary to think about the survival of our family in our absence. If you are the breadwinner of your family, then you must go for a term insurance plan so that your family can survive independently in your absence.
- Increase in Road Accidents: Everyday road accidents are increasing at a massive percentage. As per a report from The Economic Times, road accidents in India claimed over 1.5 lakh lives in 2018. Hence, with the rise in uncertainties, any day could be your last day, and you should be well prepared to face such situations. You must take a few necessary steps to make your family’s future financially stable so that they do not have to compromise on their lifestyle in your absence. Term insurance is a mandatory requirement for financial planning to secure your family during uncertainties.
- Poor Health Condition: Our health condition is getting worse because of the environment we are living in, pollution and unhealthy lifestyle habits. All of these are the primary reason to damage our immune system and making us ill. Therefore, we should be mentally and financially ready to face such critical conditions. Here Term life insurance act as a saviour. It gives you an option to add various riders like critical illness rider in your base policy. Riders like critical illness offer additional coverage for your expenses related to severe ailments. Also, if you have a medical history of dangerous diseases like heart failure, kidney problem, cancer etc. then you must opt for the critical illness rider while buying a term plan to save your hard-earned money from draining in hospital bills.
All the above points tell us that we must not wait for the right time to buy term life insurance; instead, we should focus on purchasing the correct term plan. Life is indeed unpredictable, and uncertainties can cross our path at any particular point of time. Therefore, it is advised to be cautious and well prepared financially and mentally to face such scenarios bravely.
Term Life Insurance is an ideal choice to make, be it your early 20s or late 40s. Plan well and purchase term plan for the better future of your family.
Do not let the thought of your family’s financial sufferings in your absence haunt you. If you want to opt for Term Life Insurance or want expert advice on it, then visit BimaKaro.in and get the best quotes from the top insurance companies of India.