x
SPEED NEWS DESK| Updated on 3 July 2019, 14:32 IST
There are many benefits linked to having a term insurance plan that insurance buyers are unaware of. However, before we go ahead and understand these benefits, let us first understand what is a term insurance plan and its types so that we can understand how it applies to you as per your particular life situation.
What Is A Term Insurance Plan?
Put simply; a term insurance plan is a type of life insurance policy that covers the insured for a specified period of time. The main aim of this insurance plan is to provide financial security to the insured’s family after his/her demise. This means that if an insured person happens to pass away when the policy is active, the nominee of the policy will receive the death benefits. Term life insurance plans do not offer maturity benefits.
The fact that term insurance plans do not offer more than a death benefit makes it seem like a minimal investment. However, there are insurance companies that offer some of the best term insurance policies that fulfill the requirements of insurance buyers as per their suitability. Furthermore, the cost of premiums for term insurance policies is much lower than other life insurance plans making it an affordable option to go with.
Here’s how term life insurance can help in your particular situation:
Married Individuals
Term insurance is essential for married individuals, mostly because marriage is one of life’s most significant milestones, where you accept the responsibility for another life. Most people do not think about getting term insurance until they have children.
However, life is unpredictable, and term insurance for newlyweds should be a part of one’s agenda since it provides a person with the peace of mind, knowing that your better-half will be taken care of even if something happens to you.
Couples with Children
Term life insurance is most important for married individuals with children. This is because life is uncertain and may leave your loved ones, especially your dependents in emotional and financial distress.
Furthermore, if the breadwinner of a family passes away in an untimely manner, the education of the children is at stake. Hence, choosing the best term insurance plan that offers high coverage at a minimum premium ensures that your children are taken care of, even after you are gone.
Single Parent
Likewise, term insurance plans are also critical for single parents. Single parents, as we know, have double the number of responsibilities ? from taking care of a child’s needs to educating them, and protecting them from problems till they are independent.
Hence, single parents have to calculate every possibility in a life carefully. And in the process, prepare a plan for their child, which can shield their child and provide them with every necessity as they grow. This is why term insurance is imperative for single parents so that their children do not face any financial problems in case of the untimely demise of the parent.
Stay-at-home Parent
Term insurance similarly plays an important role for stay-at-home parents. This is often overlooked, but stay-at-home parents are an asset to the family because they manage everything at home ? from taking care of the kids to preparing food, doing the laundry, and keeping the house spick and span.
So, you can only imagine the gap that you would have to face in case of the sudden demise of a stay-at-home parent. A term insurance plan will not be able to fill the emotional gap; however, it can help the family to adjust to the changes by providing the much-needed financial aid.
Retired Individuals
If a person is retired and is going through the following life situations, then a term insurance plan is more than important for him:
If the insured has children who are still financially dependent on him
In case, the insured is the only bread earner in the family; then term insurance can assure the financial security of his loved ones in case of his sudden demise
If the insured is still working post-retirement due to financial liabilities like a home loan, then he requires a term insurance plan after retirement so that his family is not burdened after he is gone
Today, reputable insurers like Max Life Insurance offer comprehensive term plans that offer benefits like flexible payout options, option to increase life cover, tax benefits, availability of riders, affordable rates, and so forth. So, whichever life stage you are at, get yourself covered with a comprehensive term life insurance plan and secure the future of your dear ones.
