How to win your race against the time?
In life we all are depend on someone or the other. As a child you are dependants on your parents. But when you start your family apart from your wife and children it’s the parents who are now dependant on you. Having these dependants is a matter of great responsibility and family person needs to make sure that they take up this challenge really well. Having enough financial earning, to lead a good standard of life and offer the best to your family dependants is what one aspires for. But, the race doesn’t seem to end here. Infact the race begins once you perish from the world. You need to make sure that the family dependants lead the same standard of lifestyle even in case breadwinner met with an unfortunate early demise. Well there are several insurance plans in the market which you can adopt for. But one plan that provides the most essential risk coverage to your family in the event of your death would be term insurance plan.
Purchasing any kind of term plan just won’t solve the mystery of your financial security. You need to be more prudent while selecting a policy. The article will guide through some points which buyers need consider while choosing a term insurance plan:
Term insurance plan is structured in such a form that it proves beneficial to your dependants in case of loss of your life. The dependants can be parents, spouse or children who might not have adequate savings to cover living expenses for the rest of life and ongoing or future liabilities if any.
So the first thing that comes to your mind would be how much cover would be enough? More the risk cover person select, the higher would be the insurance premium for the policy. So it’s better to project the future needs, inflation costs etc. and then choose a suitable amount. Do not forget to make sure that the coverage you choose is more than enough to support family members financially. Insurance gurus suggest buyers to have coverage for an amount which is around 5 to 10 times more than the annual income.
Look for the benefits your family can bank upon from a suitable Term insurance plan you choose. Basic term plan provides immediate lump sum amount in case of unfortunate demise of the policyholder to the family. Secondly, as compared to other insurance products like endowment policies and unit linked insurance plans, buying a term plan is always affordable. It has fixed yearly premiums and gives satisfaction for your minds. Insured people can also enjoy tax benefits under term plans.
It’s absolutely crucial to take a decision on when you should adopt the policy. It is really good if you buy a term plan early. When person starts earning, it is advisable to buy a policy so that insured can avail more number of benefits at lower premiums. A pure term insurance plans provides risk coverage only against policyholder’s demise but there are certain scenarios in life when risk coverage would be necessary such as critical illness leading to permanent disability. Policyholders can buy suitable riders to add value to term plan.
Tags : Term Insurance, Term Insurance Plans, Best Term Insurance Plan