Yes, taking a term insurance plan is definitely a good decision. A term insurance takes care of any unforeseen circumstances in life that one cannot anticipate. Securing your children and family for the future is of utmost importance and term insurance does exactly that.
It is always good to have a term insurance plan, in fact it is the first investment that a person should make when they start earning. You pay a small amount, a premium, in advance to protect yourself from a larger amount, a loss or judgment that could destroy you financially.
How useful is Term Insurance in India?
It is the most essential tool for financial ruggedness targeting almost 70% of the earning members in India on whom depend the entire family for financial sustenance.
Indian citizens, unlike the most of their counterparts in developed economies, do not have any sort of social security or governmental support in case of a unforeseen distress or upheaval in the family, say death of the prime earning member or gross debility arising from accident or illness.
Term illness is the perfect fit in these situations. It is a cheap and effective protection plan. All other plans in life insurance masquerading as protection plans are financial saving tools which increase the premium load and kill the prime object of life insurance.
Is it really worth it to buy a Term Life Insurance?
The answer is yes. In India, we are considering life insurance policy as a tax saving and investment instrument, but nowadays the trend is changing. In the current times, it is beneficial for every earning member to have health insurance and term life insurance.
It is true that, if we are alive then we will not get anything but if miss happening happens during the period of Term insurance then it becomes an important tools to save our family from financial trouble, which our family may suffer, in case of death of Earning hand.
Which is a good Term Insurance Plan in India to buy?
No one can say that any particular scheme is the best. This is because everyone has different needs and the plan that works best for others may not be suitable for you. I suggest you to compare various policy features online and then reach a decision.
You can approach any insurer for term insurance but keep the following factors in mind before buying.
- Reliability Of The Insurer.
- Claim Settlement Ratio.
- Plan Option.
- Add-On Availability.
When is the right time to take a Term Insurance Plan?
The untimely death of a breadwinner leaves a family with a huge emotional toll as well as a potential financial loss. The emotional loss is irreparable, but the financial loss can be replaced by life insurance. For this, it is necessary that keeping in mind all the future financial needs of your family, term insurance should be selected. But many people have a question that when should it be taken?
Life always gives surprises. That’s why it is important to think about their future in your absence. The best time to buy term insurance is when you are young. When you are young, you are healthy and free from any serious medical condition. This is the right time to buy term insurance as the premium is low.
Is it necessary to buy a Term Insurance Plan?
If you want to secure the financial future of your family, you can buy a term plan. Term plan is a low-cost life insurance product that lets you secure the financial future of your family. A term plan provides financial protection to its beneficiaries in case of death of the policy holder during a specified period.
Term insurance plans are specially designed for individuals who are concerned about the financial stability of their family in case they die or become critically ill. Although it is not necessary to buy a term plan, but if you want to secure your family’s future, I would recommend you to buy it.
Is Term Insurance really recommended?
It mainly depends on two things. Do you earn? And do you have dependents who will rely on your earnings for their living? If the answer is yes to both, then it is definitely recommended to ensure their financial security in the event of your demise.
It is important to know that term insurance is a bet against your death. Meaning, if you die, the financially dependent person will get a lump sum amount to manage the expenses. So, it is needed till the time you earn. If you retire, you are not earning… so there is no risk to your income, and hence no insurance cover is required.
How much Term Insurance can I buy in India?
In today’s time, starting from minimum 10 lakh coverage, maximum you can buy a policy according to your financial capacity. Whenever you buy term insurance policy it depends on your age and your annual income.
How to choose the best Term Insurance Plans in India?
Keeping your loved ones safe from unprecedented situations is everyone’s priority. When you have a steady income source, you can create a sound financial plan that enables you to do so. One of the first steps is to understand how to choose the best term insurance in India to make the best use of your money. Consider a few tips that will help you learn how to choose term insurance:
- To choose term life insurance, first consider your life stage and your dependents.
- Do assess the current lifestyle. When you have a clear idea of lifestyle needs, you can protect your loved ones more efficiently.
- A common concern among people is how to decide the term insurance amount that would be sufficient for their family.
- Many people are very confused about the term insurance amount that will be sufficient for their family. It is advised to analyze your income to get a more practical picture of it.
- While choosing term insurance, you must also include your loans and liabilities. Often, people have loans to repay over an extended period of time. If the policy term does not cover the repayment period or if the amount falls short, it can be financially dreadful for your dependents. Hence, it is important to choose the best term plan by carefully considering the loans and liabilities in life.
- Whenever you choose a term insurance plan, keep the riders in mind. Riders are additional means provided by insurers to enhance the coverage of an insurance policy. You can expand the scope of a term insurance policy by choosing riders.
Frequently Asks Questions(FAQ’s)
Q1. Can I take more than one term insurance plan?
Yes you can. Term insurance can be taken in multiple numbers . It depends on your annual income . If it increases, you could definitely add your on your term insurance.
Q2. What is the best age to buy term insurance?
Term insurance is pure insurance policy that only covers the risk of death. It protects the financial needs of those dependent on your income in your absence. This is why it is best to purchase a term insurance policy when you are younger.
Q3. Why should we always renew our term insurance plan on time?
It is important to do so as otherwise the policy will lapse and if it lapses then part of the sum assured will not be paid to the beneficiary if something unfortunate happens. Plus to reinstate the policy once lapsed, repeat medicals might be required. It is always advisable to pay all premiums for all insurance policies on time.
The Bottom Line
Life is full of uncertainties. If we knew our future, we would never need insurance. Term Insurance is a protection and traditional plan which provides financial protection to the insured’s family in case of unfortunate demise with very low investment. Since we do not know the future course of our lives, we pay a small premium and secure the future of our dependents financially! Click to know why you should buy life insurance in 2023?
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Also Read – The 7 Main Factors that Affect Life Insurance Premium in India
Also Read – Is It Really Worth It To Buy A Term Life Insurance?