Term Insurance: Important Of Financial Security For Your Family Members

In such circumstances, being the breadwinner for the family, it becomes essential to ensure the financial security of your dependents. God forbid your untimely demise, your family would be in great shock and severely face the difficult times due to no or low financial backup.

Industry experts always suggest, if you are earning regularly you must buy a term insurance plan to financially secure your family's future.

Importance of financial security for your family members:

1. Financial Stability of spouse

   Most families only have a sole earner to feed the dependents. It makes it very important to think of the future in a financially wise manner. Life is full of surprises and every now and then, it either leaves us with good times or bad ones. Even though both you and your spouse earn money in the family. One of you must buy a term insurance plan to safeguard the future of your partner against the uncertainty of life. After your untimely demise, the sum assured can help stabilize the financial condition of your spouse. 

2. Meeting lifestyle expenses of family

   Many people start to save money for their future in some way or the other. The most usual way of investment is either via fixed deposits, recurring deposits, buying shares, or even bitcoins nowadays. However, nothing comes in handy immediately when a sudden requirement hits us. Apart from that, the sheer fact that inflation is going to affect your savings every now and then is also an alarming concern. 

   In this case, a term insurance plan can come to the rescue. You can add riders to take the additional benefit from the basic plan. With a term insurance plan, you can rest assured of the financial security of your family. This will help your family meet their daily requirements and even achieve their lifestyle goals in your absence.

3. Securing child's future

   No matter how much you'd save for your child's education and health, inflation is going to question you after every 3-4 years. And, god forbid your untimely demise, your child's career will be at stake due to lack of funds as well as your dear presence. Tender age of your child should not face the difficulties of uncertain eventualities of life. No amount of money can indeed replace your presence; however, it is also true that a secure financial backup can help your child grow and achieve higher education. This is why it is very important to buy a term insurance plan to safeguard the future of your child against uncertain eventualities of life. 

4. Securing aging parent's future

   The fast pace of life makes us forget that our parents also age as we do. We tend to think of secure the future of our growing family that we sometimes forget about the requirements and lifestyle goals of our aging parents. You can always opt for buying a term insurance plan for a senior citizen to offer them financial security. If for any unfortunate reason you will die, the sum assured will help them stay independent in the final phase of their life. 

5. Financial freedom to pay off pending debts/loans

   To achieve life goals, we take credit and loans from financial institutions. 

   Any heavy loan such as a home loan, car loan, education loan, etc can turn out to be a tremendous burden on your family members in your absence. However, you can secure their future by buying a term insurance plan. The sum assured will be given to the nominee after your death and then they can pay off the pending due debts or loans without worrying about the finances.

Final Word

A term plan is essential and should make a part of your financial portfolio. If you are still contemplating whether to buy a term insurance plan or not, you must read the importance and benefits of the policy. Your family can use the sum assured to pay for your child’s higher education, or for meeting their lifestyle expenses, and so on. Hence, the plan can turn out to be an all-in-one solution for all your and your family's financial requirements.