Why A Term Insurance Plan Is Essential For Your Family’s Future?

Are you considering buying a term life insurance plan? If yes, then you’re definitely on the right track, since it will go a long way towards securing your family financially in case the worst happens. By this, we mean the unfortunate demise of the primary breadwinner or earner in the family (the policyholder of the term plan). In these scenarios, the family often has to grapple with several issues that can be avoided in case you have adequate protection beforehand. Let us look at how and why it is essential for the future of your family. 

A Term Life Insurance Plan Is A Necessity Today

Purchasing a term life insurance planis no less than a necessity in the current scenario. Here’s why: 

1. You can choose a handsome sum assured or coverage amount that will be enough to meet your family’s future financial needs if you are not around. This will include their household expenditure, higher education for the kids, weddings, debt repayments, etc. 

2. This will give you mental peace, knowing that your family will have a sizable amount to depend upon in case something happens to you. This will protect your dependents financially, and they will not have to compromise on their basic living standards and goals.

3. You can buy a term life insurance planfor a relatively lower amount in comparison to other life insurance plans. These plans offer higher coverage for reasonable premiums that generally remain fixed throughout the policy tenure in regular premium plans, provided you start early. 

4. You can customise the premium payment frequency as per your convenience, along with deciding the payout type, i.e. a lump sum amount, monthly payouts, or a combination of both, with some insurers also offering an increasing monthly payout option where the amount rises annually. 

5. There are tax benefits available under Section 80C for the premiums that you pay towards your policy. Moreover, the sum assured payout to the family will also be exempted from taxes underSection 10 (10D). 

6. You can widen your coverage by selecting additional riders like accidental death/disability, terminal/critical illness, premium waiver, etc. These come at an additional cost and should be chosen based on individual needs. 

Start Searching for a Term Life Insurance Plan

As you can see, buying a term life insurance planis imperative for securing your family in case something happens to you. It will give the household much-needed financial stability without having to sell off assets, compromise on various goals and lifestyle needs, or even grapple with liability repayments. You will also gain mental peace, knowing that your family is always secure and will not have to depend on others in case you are no longer around to take care of them. Hence, adding term insurance to your portfolio is the first step that you should take when you start earning (ideally). Even if you haven’t got it early on, it is never too late to buy these plans. They offer the best balance of affordability and financial coverage.