Real Estate

5 ways in which a term plan secures your family

Do you envisage a future where you are absent from your family’s life, but they continue to live a life of comfort and financial independence? Make this vision a reality with a term plan.

Lately, it might seem like you are inundated with advertisements for insurance products whichever way you turn. There’s a reason for this: insurers want you to be safe, and to keep your loved ones safe from future financial turmoil as well. Life is uncertain, and the best laid plans may go up in smoke in the blink of an eye.

As hard as you work all day to secure your family’s future, there is always a niggling doubt at the back of your mind: ‘What will happen when my income stops in my absence?’ You worry that the savings you have created are not enough, and that your loved ones cannot fulfil most of their dreams as they grapple with daily living costs.

It can certainly become next to impossible to deal with mounting expenses when there is no income to meet them. But this is where a valuable life insurance product known as the ‘term plan’ comes in . The term plan is a product that does not have a maturity benefit but which has a large sum assured that your family members receive in the event of your untimely death .

Furthermore, you can buy the term plan online quite easily, and pay the premium online every year. Online term plans may also have lower premium payments as compared to plans purchased offline. Consider the 5 ways in which a term plan secures you while you are still alive and your family’s future in your absence :

  1. The term plan is an affordable insurance instrument, providinglife coverage at a low cost.

When you buy a term plan online, you realise that you have just signed up for one of the most affordable life insurance products in India today. Despite the premium being quite affordable, the sum assured on the plan is quite high. This feature immediately gives you a sense of peace since the term plan provides you with essential life coverage at a fraction of the cost that you would otherwise spend on more expensive life insurance. This is why you should purchase an online term plan before you look up other insurance plans, so that your life is insured at an affordable cost.

  1. The sum assured helps your family maintain its current lifestyle.

Too often, though life insurance payouts are settled on time after the policy holder’s untimely demise, the family grapples with daily expenses and unexpected emergencies . Most insurance plans, except term plans, with a low premium also have a correspondingly low sum assured amount. This amount may keep the family going for a few months – but what happens afterwards? In contrast, the high sum assured of the online term plan , which may be in the range of Rs 1 crore and above, can help your loved ones to continue living at the standard of living that they are currently accustomed to, despite the loss of your income.

  1. It can repay unpaid debts.

A lot of people today service a variety of loans – private loans from friends and family, home/car/personal/credit card loans, etc. In case you are too, you are justifiably worried about how these loans can be repaid if you were absent in the future. You need not harbour any worries on this front if you buy a term plan online. In your absence, your family members can repay all unpaid debts using the term plan corpus.

  1. It can pay for children’s education and future needs.

For most of us, a major area of expense is children’s education and their daily school and college-related needs. Education costs keep rising in India annually, and most parents find it difficult to finance their children’s future ambitions, especially if these revolve around their plans to go abroad to study. But the large sum assured amount from the online term plan can finance not just children’s future education, but also their weddings.

  1. It can give your family a better life.

It might sound a little morbid, but a term plan is your family’s ticket to a better life. You constantly wrestle with rising living costs and inflation on a limited income, but the term plan corpus can be the answer to today’s problems. For instance, if you find it difficult to live with your spouse and kids in a 1 BHK house, it is likely that your spouse can use the term plan money to buy a larger house in the future, or even start a profitable business to build your loved ones’ lives. In many cases, the term plan money holds great promise for your family’s future.

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