Term insurance is basically a form of life insurance that helps your family to beat all financial hurdles that may occur in case of your demise. It will stand for your family in your absence to provide the required comfort that you are offering now.
Let us assume that you bought a brand new car and riding in the same on a high way and suddenly a man comes ahead your car and to save his life you put sudden break that is a big risk and then you met an accident that lads you towards permanent disability or your death.
What will your family do after you, if you are the only earning person? Such situations are really hard to handle, you know when and where something like this can happen to you which will easily spoil the happiness of your family. That’s why you have to invest in a term insurance plan which can easily offer the needful coverage to your family in case of your absence.
The risk cover that you get under the same is popularly known as Sum Assured which will be a pre-decided amount of money that will be liable to pay to the nominee as stated in the document.
The need for investing in a term insurance plan can easily be differentiated from a person to person, but the most common benefits that influence people a lot includes
For a secured future of family: If you are the single earning member of the family then it is necessary for you to invest in a term insurance plan. In case if something bad happens to you then this plan will be there to offer the needful cover to your loved ones. With the help of an effective term insurance plan, your family will at least have the financial assistance to deal with the financial burden in your absence. With the same, they can at least maintain their lifestyle easily.
To take care of liabilities: It is true that currently, several people must be winning several liabilities that they have to period over a time and in case something happens to them who will take care of that. Yes, your family have to deal with such a burden as well But you can protect them from this by investing in an effective term insurance plan. Yes, a term insurance will clear all your liabilities in case of your absence and your family do not have to worry about the same.
Currently, you must be holding lots of liabilities to buy our home, buy a brand new car, etc. Lots of liabilities must be paid within a specified period of time but in-case where something happens to you as the single earner of the family, the burden to repay such liabilities may comes directly on your family. A term life insurance will help yur family in dealing with these financial problems.
Several benefits for nuclear family: Well, we all are aware that today is the world of nuclear families. These days, the only support of your family will be you only. If you do not invest in a term insurance plan, situations will only get worse by the time in your absence. Term life insurance deals with any financial repercussions.
Affordability: Unlike other life insurance products, you can easily invest in a term insurance plan very easy and affordable. A risk cover of around Rs.50 lakh will cost around Rs. 4184 annually for a 25 years old male. If you invest in a term insurance plan, the monthly premium can also come down.
Tax Benefits: A term insurance policy will also provide Tax benefits u/s 80C & u/s 10(10D) of the Income Tax Act. Thus, by investing in a life insurance plan, you’re actually making savings.
How much coverage is ideal for a person?
According to the general thumb rule of term insurance, the sum assured will be at least 8-10 times of your annual income.
There are many insurance companies that offer the possibility to increase your sum assured to an X% year on year, which keeps you adequately insured. Moreover, if you are still confused then take help of PolicyX.com, it has the required tools which can assist you in all queries relating to term insurance plans. At this platform, you can compare term plan to get the best one out of all.