Need Of Term Insurance & Its Early Planning

Securing the best for families is a human trait. It will not be wrong if I said that every person who loves his family want to secure its future as well. Nowadays, we are surrounded by uncertainties, which are present in every corner of our life. Hence, it has become absolutely essential to secure family future and their needs. More so, if you are the single earner in your family, then in the scenario of an accident, disability or death, have you ever thought that what will happen to your family and who will take care of their needs if you are not there. Apart from emotional support, they would require a financial support as well to take care of the situation.
This is where a term plan comes into relevance. Here are some of the reasons for you to opt for a term insurance plan to safeguard you and your family’s future.
Delay Is Not Good
If you have already planned for buying a term insurance plan but putting off the decision for some reason or the other, then it’s time for you to get going. You must be aware that the savings which you hold in your bank account would not be enough for your family to bear the loss of your death. With this saving, they would be unable to meet the basic requirements let alone additional expenses. Hence, it is better to use those savings in a smart way and a term plan is the best way to go about it.
Term plan-cost effective
You might not be aware, but a few years back, buying a term insurance plan was very expensive. It used to costs around Rs. 50-60 thousand per year as the premium amount for coverage of Rs 1 crore. However, now you can get the same coverage at a nominal cost of around Rs 10000.
More the age-more it will cost
Yes, it is a fact that with an increase in age, the premium of the desired term insurance plan would also increase. There are many reasons behind the same. However, the most common reason is health related. As the age increases, the possibilities of having a disease also increases which makes it difficult to buy a term insurance policies and even if you buy one, it would be very expensive to afford. Hence, don’t waste your time and decide early when you are young and can easily afford the premium amount and the coverage that it offers. Compare online from a host of products available and do make sure to review your term plan every once in a while basis your needs.
Your family would love it
I really don’t know if you are going to buy a term plan or not, but your family would love it for sure. It would be a great gift for them. They would be happy when they come to know that you have taken this step for them, for their security and a better future. It shows that you want to protect them in every possible manner.
Bring peace of mind
It really feels awesome when you know that your life is covered under a term life insurance. You will feel relieved for sure. A online term plan insurance would take care of all your loans and liabilities as well.
How much you should buy
Basically, the answer to this question varies from person to person. It depends upon the amount of assets that you have. As per the thumb rule, you must buy a plan which provides coverage in the range of 15 to 20 times your yearly income. Also check the family requirements which would be enough to live a similar lifestyle after you are gone.
What should be the best tenure of term plan?
Most people would go for the longest tenure. Tenure till retirement + 5 years should be good enough. With retirement your expenses fall and hence the financial reliance on your income also subsides a bit. So there isn’t too much requirement of insurance as such.
Benefits of Online term plans
Term plans are same whether it is available online or offline. But if you purchase the plan online, then you get all the benefits at the cheaper rate. It is advisable to buy term insurance plan online for the following reasons:
– Low premium rates
– Less time taking
– Minimum paperwork
– Transparent
– No health checkup for some age groups
So now that you know the various benefits of having a term plan, what are you waiting for? Start your search and find the best suitable plan for you at any of the online IRDA Approved insurance aggregators. Buying insurance and peace of mind was never so easy.
Source: http://www.policyx.com/blogs/need-of-term-insurance-its-early-planning/

About the Author(Article Source: http://www.artipot.com)
Hi, I am Ankita G working with insurance comapny as insurance adviser owing good knowledge of various policies such as Retirement pension plan, life insurance plan, online term plan, health insurance,home Insurance so on.

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