This is a pretty broad question but in the broadest of things the answer is small; Yes, Term life insurance is worth it. The answer may change slightly or significantly depending on your situation. If you have a family that you are responsible for, yes it is worth buying life insurance.
In today’s time, people are very confused about buying term insurance, but it is true that term insurance is the best way of protection, yet many people are not ready to buy peace of mind. They believe that they are going to be here forever.
Is Buying Term Life Insurance Really Worth It For You? For this you have to answer some questions, if you meet with an accident or untimely death, then:
a) Who will pay for the regular monthly expenses of your family?
b) Who will pay for your child’s education?
c) Who will bear the expenses of your child’s marriage?
d) Who will pay your outstanding home loan and other loans, if any?
e) Who will pay for your spouse’s retirement?
The only answer to all the above questions is Term Life Insurance Policy. So, do you now think it is really worth buying life insurance?
These Are The Major Reasons That Term Life Insurance Is Worth It
Term insurance policies are the purest form of life insurance which is very important for the financial security of your family. There are many uncertainties and challenges to be faced as we go through life. Because of these uncertainties and challenges, we remain scared. In such a situation, having term insurance becomes very important. This can prove to be a boon for our family or nominee in our absence or in case anything happens to us.
You hardly give any importance to term life insurance, but here are some reasons why the term insurance is important to us.
To Financially Secure Your Family
We all know that our life is full of uncertainties, no one knows what will happen to you the next moment. When an unfortunate event occurs, it can put your family in financial trouble. Hence, it becomes extremely important to create a financial back-up for your family and near and dear ones. Term life insurance is the perfect plan for such situations. It can secure the financial future of your family. Financial stability is the main reason why you should have a term insurance plan.
Financial Protection Against Debts
We work very hard to make a living for our family. Every person has a dream, a lovely house, nice car, good education for children etc. But to meet all these needs, a lot of money is required, which is a bit difficult for a middle class person. But we look at other options to meet our needs, which include loans, credit cards, etc.
After taking the loan, if unfortunately an accident happens to that person, then the whole family comes under financial crisis. In such a situation his whole family gets buried in debt. But term insurance is the best way to avoid debt. It can go a long way in maintaining the standard of living of the family even in the absence of that person.
Also Read – Why should you buy a term life insurance plan now? Know about 5 reasons!
Pure Protection Plan
In today’s time, the coverage of insurance in our country is less than 5 percent. This means only 5 out of 100 people buy the insurance. Many of them also take it as an investment. Insurance should never be mixed with investment. You should go for term life insurance for insurance. Term insurance is a pure protection insurance in which you get huge coverage. No maturity benefit is payable in this. It helps your family financially in case of any kind of accident during the policy term.
Very Low Premium
As we have known so far that term life insurance is a pure protection plan. It strengthens your family financially in case of any untoward incident with you. It provides financial security to your family at a very reasonable cost as it does not involve any kind of investment. For example, if you are 30 years old and a non-smoker, you can buy Rs 1 crore term insurance for just Rs 900 per month. Same if you smoke then you have to pay a little more. You can choose the term of insurance as per your responsibility
A term life insurance is essential for anyone who is bringing home a daily bread for his family. Your dependents depend on your income, so it is your responsibility to ensure that they do not have to compromise too much in their standard of living. Term life insurance provides you a long term coverage till the time you are liable. Although it completely depends on you that you need it till then.
Also Read – Why life insurance is important to have
Term life insurance plays a vital role in securing the future of your loved ones when you are not around. Along with this, it also gives you many benefits. It helps you live peacefully and also gives you tax benefits.
Under Section 80C, it gives you the benefit of tax deduction up to Rs 1.5 lakh. If you meet with an accident, the death benefit received by your family is tax-free under section 10(10D).
Frequently Asks Questions
Q1. Does term life insurance policy have cash value?
No, there is no cash value in term policies. But if you opt for “Return of Premium” (ROP) policy then all your money will be paid back to you in lump sum but they are Twice+ as expensive.
Q2. How long should my term life insurance be?
The main purpose of this type of policy is to provide financial support to your family, so take this policy at least till your children/family need your financial support.
Q3. What happens if I outlive my term life insurance?
Term insurance plan is a pure protection plan that provides financial stability to your loved ones in case of any unforeseen event. It provides financial coverage for a specific period, i.e. the period chosen by you at the time of purchase of the plan. No benefit is payable after the expiry of the term.
Q4. Can I give up my term life insurance policy?
Definitely. You can do this anytime by stopping paying insurance premiums. But no benefit is payable to you in term life insurance.
Q5. What is the best age to buy term insurance?
Term insurance is an incredible deal if you are young and healthy. It is directly linked to your worth or income. If you think that based on your contribution to your family, how much financial loss your family will suffer after you, then you can plan for term insurance.
The Bottom Line
Have you ever thought for a second before taking car insurance or bike insurance which costs 10 lakhs or 2 lakhs, all people will have the same answer no. It’s just because you understand its benefits, the same is true for term insurance. Your life, your responsibilities should also be your priority. We all will leave this world by a certain age but not our responsibilities. Till then you should make sure that your responsibilities are taken care of. All these should be taken care of by an adequate term insurance.