In times of financial uncertainty, it is often the steps we take today that can have an impact on the future. Too often we fail to correctly estimate how much money will be needed for future financial goals. Inflation and rising expenses eat into our monthly income steadily.
At the same time, we often fail to factor in one grim fact – we are able to support our families only as long as we are present with them. If we are not, our loved ones may face severe financial difficulties. The best way to remedy this situation is by buying a term insurance plan.
Consider the following reasons to buy a term plan:
is affordable. Term insurance policies are among
the most affordable insurance products in India today. This is because the
premium payable is quite low. Hence, it is an ideal insurance product for those
who do not wish to invest in expensive life insurance policies, but who would
like to have sufficient life coverage for their loved ones’ future.
- High sum assured. Though the premium on the term plan
is quite low, the corresponding sum assured is not. In fact, term plans have
some of the highest sum assured amounts across life insurance products in
India. This large sum of money can be useful to your loved ones in your absence
– many of their personal milestones can be achieved using this money.
- Flexibility. Reputed insurance companies in India are offering flexibility in term
plans. Apart from simple pure life insurance policies, they are offering
different pay-out options and the chance to change the plan matrices if
necessary. This was not possible earlier, when only simple term insurance was
offered with a lump sum payout.
- Low possibility of claim rejection. As per a new
mandate from the IRDA (Insurance Regulatory Development Authority), insurance
providers cannot penalise the policy holder on grounds of non-disclosure of
facts two years after the policy becomes active. However, you must take care to
furnish all the correct and latest information about yourself at the time of
taking the term plan. This mandate means that future claims made on your policy
will likely not be rejected, if your information is correct.
- Best way to pay for the future. You may have created savings and made investments for the future. However, in times of high living costs and mounting expenses, these may not last for more than a few months. Realistically, it may not be possible for you to create a savings or investment fund to the tune of crores of Rupees. However, your term plan money can be upwards of Rs 1 crore. Hence, term insurance will hold your family in better stead.