Single Earner For Your Family? Here’s Everything You Need To Know About Term Insurance
Running a family smoothly financially can be a very challenging and demanding aspect of life, especially for the family’s sole bread earner. We have to look out for all their needs and requirements and simultaneously balance the exhaustive work-life culture, which may be overwhelming at many times.
Everyone strives hard to provide a secure future to their families without any hassles, but life is uncertain, and the risk of an untimely death is quite significant. For instance, let say a single earner for a family passed away suddenly. It would push the family through a substantial financial crisis as the only source of income to the family is disconnected abruptly without any warning. This is where having a term plan will help!
The family cannot survive on just the family savings saved through the years as it might not prove sufficient to meet all their financial needs. Therefore, a term insurance policy is the best arrangement a family can have at this time since it promises financial security and helps the family deal with unforeseen financial losses.
How Does A Term Insurance Policy Work?
A term plan is a simple form of life insurance promising the financial future of your family or loved ones in your absence and helping them to return to their lives as before. The term plan premium is calculated based on age, health, coverage amount, etc., and it would remain the same throughout the policy term.
Therefore, an individual can get the highest coverage amount at an affordable premium price by researching all the term plans available in the market.
The policyholder can pay the premiums at regular intervals or just once and decide how to receive the insurance coverage amount. There will not be any monetary payment from the insurance company once the coverage ends and the insured member is still alive. However, the policyholder will get a lump sum once it matures and only if the policy included survival benefits. In case of the policyholder’s untimely death during the term, the insurance company will pay the coverage amount to the beneficiary mentioned in the term plan.
So, what is term insurance? A term plan is the most basic form of a life insurance plan that any individual can take on their own life. The policyholder should decide the specific tenure, sum assured, and beneficiary while choosing the policy and pay the premium until the term is over. Suppose the insured member, unfortunately, dies during or after the policy term. In that case, the insurance firm pays the coverage amount to the beneficiary mentioned in the policy, thus offering financial security at essential times.
Benefits Of Term Insurance Policies
- The policyholder can get a high sum assured at a low premium price since the policy covers only the risk of death.
- The insurance policy has no limit on a coverage amount, and therefore, the insured member can increase the coverage levels for better financial security in the future.
- The coverage period of the term plan can extend up to 30 to 35 years that allows policyholders to enjoy coverage up to their very old ages.
- The insurance plan has multiple death benefits payout options ranging from regular monthly payments to a lump sum of the amount at the end of the term.
- The best term plan in India offers a range of additional riders that will help you enhance the scope of the plan’s coverage. The various rider includes accidental death benefit rider, term rider, critical illness rider, premium waiver rider, terminal illness rider, and accidental disablement benefit rider.
- The term insurance plans come in various types, and knowing the exact differences will help the individual select the best term plan in India. The different types of term insurance plans include level terms plans, increasing term plans, decreasing term plans, TROP (return of premium) plans, and group-term plans.
Why Should You Choose The Best Term Insurance Policy In India?
If you are the breadwinner of the family or your family is financially dependent on only you, then you have to choose the best term insurance plan in India to protect them from any financial loss during your absence and also provide financial security.
Aterm plan offers a high coverage amount for an affordable premium price. So, obtaining a term plan will ensure that your family will be well cared for financially in case of your demise.
Moreover, researching the best term plan can bring tons of benefits to your family in your absence and regularly pay the plan premium to reap more outstanding coverages. Using a tax calculator can help to understand tax exemptions one can avail.