Our life is very short and no one can predict what will happen in future. If you are the sole breadwinner of your family and your family is dependent on your income, opt for term life insurance to ensure that your family is financially secure even after you are gone.
Why Should I Buy Term Life Insurance 3 major Reasons
In today’s technological era, we are not able to give time to our family, the main reason for this is that we work hard day and night to fulfill their needs, worrying about the future of the family. As the pace of our life is increasing, similarly the uncertainties are also increasing day by day. In such times, what every family needs is a life cover, which allows them to cope with the loss of a loved one, at least financially. To meet this demand in today’s time, providers are coming up with plans that cater to different needs of different individuals.
In such a situation, it can be a bit difficult for a common man to choose the right plan, but to keep things simple, term life insurance plan is the most suitable product for the general public. It is the simplest and very easy to understand. If you want to live peacefully without worrying about your family’s future and financial stability (in your absence), then you should buy a term life plan. Let us go through the main reasons why I should buy this.
To Protect Financial Stability
Financial stability is the foremost reason why I should buy this type of insurance. When it comes to family, there is one earning member in the family and the rest of the members are dependent on his income. The death of the earning member of the family or any other earning member can turn the life of the rest of the family upside down. In such a situation, running the household expenses and taking care of the basic needs of the family can be a very difficult task.
No one would want to put their family in such a situation, probably not even you. In this case, if you have a term life insurance plan, then it provides the complete sum assured at the time of death and can make life financially easier for the rest of the family members.
Also Read – What Is Life Insurance | How To Choose Best Life Insurance
To Secure The Future Of Your Loved One
When a man is born, there is no responsibility of any kind on him, but when he grows up, responsibility starts coming on him. First of all our parents, then our spouse and then our children. You dream of doing a lot about your family and children, but death is a reality that no one can escape. This can prevent you from fulfilling your responsibilities and obligations towards your family.
But with a term life insurance plan, you can plan your future accordingly. This will help your family financially in the event of your death. The payment made by the insurance company will ensure that your children get a good education and have funds for their marriage. Also your spouse and parents can lead a comfortable life without facing any financial difficulty.
To Protect Your Family From Debts
In today’s run-of-the-mill life, a person must take some loan to fulfill his and his family’s dreams. It can be auto loan, home loan, personal loan, business loan or education loan for children. But in case of any untoward incident with you, this loan amount can become a cause of trouble for your family. Term life insurance can be the main way to avoid such a situation. The proceeds from this type of insurance pay off your loans with interest and ensure that your family is not burdened with these loans.
When is the right time to take a term life insurance plan?
There is often a common confusion when it comes to buying insurance – When is the right time to buy a term plan? When should I take The easiest answer to this is that when any kind of financial responsibility comes upon you, then it becomes most important to take term life insurance in such a situation. When you are young and you have any dependents who depend on your income for their existence whether they are your parents, spouse and children. In such a situation, having a term life insurance becomes important. The main objective of term life insurance is to compensate for the loss caused by the death of the financial provider in the family.
Also Read – Is It Really Worth It To Buy A Term Life Insurance?
What should I look for in a term life insurance?
Term life insurance is a pure life insurance that helps your family to tide over the financial situation. Whenever you plan to take term life insurance, some of the things that you must look for in it include the following things.
- Whenever considering term life insurance, you have to make sure whether it covers your lifestyle or not.
- Apart from covering your lifestyle, you also have to check whether it meets your requirements or not.
- Before taking term life insurance, check whether it covers your responsibilities till the age or not.
- Whether the premium charged by the insurance company and the services of the company will be suitable for you or not.
- In term life insurance, you also need to check the financial rating of the company.
Is it really worth it to buy a term life insurance?
As we move forward in life, we face many uncertainties and challenges, some can be learning experiences for us and some can be harmful. The importance of term insurance can be felt in some such experiences i.e. car accident, temporary disability.
Many people think that term insurance is a waste of money, but it can prove to be a boon for our family or nominee in our absence or in case anything happens to us. Answer the following questions to understand whether buying term life insurance is really worth it. If you meet with an accident or die an untimely death:
- Who will pay for the regular monthly expenses of your family?
- Who will pay for your child’s education?
- Who will bear the expenses of your child’s marriage?
- Who will pay your outstanding home loan and other loans, if any?
- Who will pay for your spouse’s retirement?
The only answer to all the above questions is life insurance policy. So, do you now think it is really worth buying life insurance?
Frequently Asks Questions
Q1. How much term insurance cover should i have?
Every person has different circumstances, based on that you can take your decision. It is based on the financial commitments of your family. Your family’s expenses and income can be calculated accurately by considering factors. You can also decide on the required term insurance coverage as 10 times your current annual income as a rule of thumb.
Q2. How long should my term life insurance be?
This answer is entirely up to you. But if your family is completely dependent on your income, at least until your children need your financial support. The main objective of the policy is to replace the lost income in case of premature death by the earner/income producer.
Q3. What is the best age to buy term insurance?
The best time to buy term insurance is as early as possible. As your health risk factors are lower at a younger age, your liabilities are lower; Hence you become eligible to get higher sum assured at relatively lower premium. Plus you get a lifetime of peace of mind that your loved one is financially secure in your absence.
The Bottom Line
A term life insurance is essential for anyone who is bringing home a daily bread for his family. These dependents depend on you to maintain their lifestyle and hence it is your responsibility to ensure that they do not have to compromise too much in their standard of living. Term insurance has a place, it is usually for young adults who have started a family and bought their first home.
