You pay a premium (a fixed sum of money) in this policy to your Insurer. You pay this amount for a fixed time period called tenure or term of the policy. Buying term life insurance policy.
Your spouse and children get money called the death benefit, based on the premium you pay.
Your family gets nothing, if you survive the tenure of the policy.
If you are just married with or without children you must have a term life insurance policy. If you are the only breadwinner in your family do not step out of your door without a term life insurance policy. If you die young your spouse and children will be well provided for and you can live your life free of financial worry.
You might need a term life insurance plan, even after 50 under certain conditions
You are 50, but have dependents
It is widely believed that when you are 50, your children would have completed their studies. They would be working. They would no longer depend on you for their livelihood. But what if your children are still young? You would need to avail a term life insurance plan, even when you are 50 years of age. Today marriages at a later age are quite common. This means kids at a late age. If you are 50 and your kids are still studying, you would definitely need a term life insurance plan.
You do not have much money
You are 50. You should have sufficient savings and investments, so that your family can lead a high quality of life, even in your absence? But what if you are not confident that your family can enjoy the same quality of life they currently lead, in your absence. You feel your savings and investments would not be enough for your family, in case of your unexpected demise. Would you want your spouse and children to be dependent on someone else, in case you are not around to provide for them? Yes, you need a term life insurance plan even at 50. A term life insurance plan makes sure that even if you are not around, you leave behind a safety net for your loved ones. Your spouse and children will remember you in this life and the next.
If you have a loan to repay, then you need a term life insurance plan, even at 50. You have availed a home loan when you were in your early 40’s. Banks allow you to stretch the repayments on your home loan, even till you are 60. If you have availed a home loan in your 40’s, chances are your home loan repayments could stretch till the time you are 60. You are just 50 and you have maybe 10 years to go, before you pay back your home loan. Could you leave this home loan behind for your wife and children to repay? You need to avail a term life insurance plan even if you are 50, so that the life insurer settles your home loan in case of your untimely demise. Your family is not burdened with the home loan.
Check out these videos. You will soon know why you need a term life insurance plan
First, let us summarise what exactly is a Term Life Insurance. Term is a type of life insurance that provides a potential death benefit for a fixed period or term.
Here are the reasons why Term Insurance is an absolute buy.
It is a contingency fund for your family - Whom does your family depend on for meeting their lifestyle expenses? If you are the sole breadwinner, it would be you and your earnings. What would happen in case of your premature death? How would your family cope with their expenses? A term insurance plan comes to your rescue here. Since the plan pays a lump sum benefit on premature death, your family gets the much-needed financial assistance.
It gives you peace of mind - By enabling you build up a contingency fund, a term plan assures peace of mind. You can relax knowing that even in case of any unforeseen eventuality (read premature death) your family would be financially secured.
High coverage at cheapest premiums - Considering the rising expenses in modern times, an optimal contingency fund is required for a complete financial security. Affording such a fund is possible only with a term insurance plan.
Protection against debt liability - Decreasing term plans are designed to take care of our loans and mortgages. Under these plans, the Sum Assured and the plan term are selected to reflect the loan amount, the interest rate and the loan repayment tenure. Every year, the Sum Assured decreases by a certain percentage (depending on the plan). The resultant Sum Assured (after every decrease) reflects the outstanding amount of loan. In case of early death, the plan pays the Sum Assured as in the year of death to repay the outstanding loan. Thus, your family is spared the burden of your debt
Low claim rejections - You get assured claims if you furnish correct details. Moreover, courtesy of the Insurance Amendment Act 2015, any claims made after the first 3 policy years are compulsorily honored by the insurance company. So, your wish for your family’s security would not remain unfulfilled as your term insurance claims would be honored.
To gain more information before buying a term life insurance plan that's best value for your money contact Turtlemint.
Read more on our blog - Why Is Term Insurance an Absolute Buy? | Turtlemint Blog
It’s worth it to buy a term life insurance policy IF someone will suffer financially if you pass away.
The decision to buy term life insurance is an important and personal decision.
You should consider the following 3 questions when deciding if it’s worth it to buy term life insurance.
You may need life insurance if anyone relies on your financial or caregiving support.
Imagine if you passed away tomorrow.
If someone close to you would struggle without you around, you probably need life insurance.
Many people fit into this category such as married adults, stay-at-home parents, business owners, cohabitating couples, adults with caregiving responsibilities and many others.
Life insurance provides financial support for your loved ones during a difficult time. Your loved ones can use policy’s death benefit any way they want, such as to pay the monthly mortgage or rent payment, replace lost income or cover living expenses.
2: Should I buy term or whole life insurance?
If you think you need life insurance, you need to choose a plan type. The most common types are term life insurance and whole life insurance.
Term life insurance provides life insurance coverage for a set period of time, ranging from 1 year up to 30+ years. It’s the most common type of life insurance and is usually the most affordable too.
Whole life insurance provides permanent life insurance coverage for your entire life as long as your premiums are paid on time. It’s usually more expensive than term life insurance.
3: Can I afford term life insurance?
As stated above, term life insurance is usually more affordable than whole life insurance. So if you need to find an affordable plan, you might want to consider term life insurance instead of whole life insurance.
Many term life insurance plans are affordable, even for families with tight budgets.
For example, a healthy young adult may be able to get $500,000 in term life insurance coverage for under $18 a month.
Your plan premiums will vary greatly depending on your age, coverage amount, your health and the plan’s term length.
You can learn more about term life insurance, and even get a free price estimate, on LifeInsurance.org.
Term life insurance can get you the most amount of coverage for the least amount of premium for a certain period of time, usually, 10, 15, 20, 25 or 30 years.
So, if your need for life insurance is temporary and you don’t want to pay higher premium, there is nothing that beats term life.
It is also a good way to get inexpensive coverage that can be converted into a permanent (universal or whole life) plan later in life without having to medically qualify all over again.
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