A family is the most valuable possession in the life of anyone. Believe it or not, the well-being of the family is of prime importance for anyone. No matter what stage of life, it is important that the financial future of the family is always secured so that even if you are not there tomorrow finance is never a hurdle for the family.
Buy the best term plan in India that will act as a financial cushion and support to the family in case of any adversity. When selecting the term plan, assess the requirements of the family carefully.
In case you are wondering what is a term plan. Read the article below to have a better understanding.
Term insurance policy is essentially a product of life insurance that offers coverage in regards to finances to the policyholder for a certain time frame.
In case the policyholder passes away during the policy tenure, the beneficiary or the nominee will obtain the death benefit by the insurance company. Before you buy a term insurance plan it is important to understand its features as well that would help to make an informed decision.
The key intent of buying the term insurance plan is to provide life cover and financial security to the family. Now that you understand what term insurance is, now let us go ahead and understand the importance of a term plan.
The term insurance plans offer pure life cover, which means there is no profits or the savings component.
The term insurance plans are designed in a way that makes it one of the most pocket-friendly insurance products when compared to other products available in the market.
The policyholder can opt for a larger life cover at the most affordable term insurance premium when compared to an equivalent endowment plan. Listed below are some of the features that make a term insurance plan a must-buy:
In these tough times of COVID-19, it is highly recommended to buy an online term plan. Well, doing so is as easy as placing an order of a food product browsing the web.
The following are some of the reasons to buy the best term plans online:
When planning to buy a term plan it is of prime importance that you are well aware and have a good understanding in regards to the financial requirements of the family before you zero down a certain term plan.
Make sure that the plan you choose should have adequate life cover so that the prerequisites of the family are taken care of and not compromised even in your absence tomorrow.
Therefore, you need to take out, analyze every source of income, the number of dependents in the family, the website and liabilities, the lifestyle expenses. Once you are clear with these then you should consider the life objectives of your spouse, children and parents.
Now, you need to calculate the term insurance premium that you would end up paying. For this, it is suggested to use the term insurance premium calculator online. Ideally, the coverage sum should be for a term plan should be fifteen to twenty-five times of the yearly income on the premise of your age. Do focus on the claim settlement ratio of the specific insurance company as this will help you to make a wise and an informed decision. A top claim settlement ratio implies that the insurer does its best so that the filed claim by the nominee is resolved as soon as possible.
The Bottom Line
The best time to buy the term plan is when you start earning and have family members that are financially dependent on you.
In the times of duress, a term plan will provide financial coverage to the family when the income generator is no more. The primary objective is to keep the family financially stable and happy.
A term plan ensures that the everyday expenses are duly met and the family can accomplish the dreams. Besides, as the breadwinner of the family, you will be at peace that the future of the family is secured even in case of any unfortunate incident that might occur.