With the increasing uncertainties in life day-by-day, every family realises the importance of having a term insurance plan to deal with the finances in case of the loss of the primary breadwinner. The insurance companies are coming up with different plans that would cater to individual needs.
A term insurance plan is the simplest plan amongst any other life insurance policies. It provides death benefit to the nominee after the demise of the insured. Let’s know why you should buy a term insurance plan in 2021.
The family enters into a state of shock when the breadwinner of the family passes away. The shock isn’t only emotional but also financial. The loss of the family member cannot be compensated but one can assure the finances of the family is always stable. The family can take care of basic household expenses and can also realise the unfulfilled dreams. Term life insurance is a financial assurance to the family of the insured as they receive the assured sum as a death benefit.
Secures the future:
Every primary bread winner of the family has responsibility towards the family, and they can continue doing so even after the death by investing in a Term insurance plan. The Term insurance plan helps meet all the responsibilities that the earning member has towards the family. The family can easily live upon the death benefit received after the demise of the insured. This amount can be used to continue the education expenses, household expenses and any other expenses like marriage of the children in case if the insured passes away before time.
Paying off debts:
If the primary bread earner dies without paying off the outstanding debts like car loan, house loan or any other loan the burden eventually falls on the family. Having term insurance would help in paying off any debts or outstanding loan amount.
Massive coverage and Low premiums:
Term insurance plans provide a huge coverage with just a small premium amount. If you can purchase the insurance at a younger age, the premium amount would be even lesser, so it will be if the insurance is purchased online.
Benefit of riders:
Most of the term insurance plans offer additional benefits as riders. You can also choose riders for accident or critical illness coverage. The benefits are available with a little extra premium over the existing premiums.
Also, before purchasing a Term insurance plan, you need to keep a few things in mind.
Choose a plan that provides adequate coverage for your family in your absence.
Disclose all health related information correctly while purchasing the term insurance plan such as smoking, drinking etc. Hiding few plans may lead to claim rejection in future.
Disclose all your existing policies as hiding details of previously purchased policy may lead to claim rejection.
Choose riders wisely as they provide additional benefit apart from the existing benefits of the term insurance plan. For instance, accidental cover provides death benefit an additional benefit to the nominee in case of accidental death.