Why term insurance?
When you consider term insurance, think of it as an investment for the future, especially for the forthcoming needs of your family in your absence. They will be kept safe and sheltered under the wings of the term insurance plan. Life insurance plans.
Here’s a peek at the benefits of owning a term insurance plan:
Imagine the following scenario
You just graduated from college and got recruited by a major company directly through campus placements. You have finally achieved financial independence and the whole world has opened to you. You have many goals and aspirations and life insurance may be the last thing on your mind at this stage in life.
Most people consider life insurance to be for middle-aged people with families and responsibilities. This couldn’t be farther from the truth. This is perhaps the best time to start planning.
Taking out a life insurance policy in your twenties has many benefits. For one, you benefit from lower premiums. Moreover, in the long term, it can help you save a lot of money. This is because, many insurance companies charge higher rates (sometimes double) as people grow older.
You can also avoid putting additional pressure on your family members. For example, you may be servicing your student loan with your regular monthly salary. But in case something happened to you, your parents (or your relatives who have co-signed your educational loan) would become responsible for the huge debt. A term insurance policy that covers your outstanding loans would help you protect your family from unwanted financial burdens.
And then there’s the question of-What if? Remember when you stepped out onto the road without taking an umbrella and it rained? Your brand-new shoes were completely soaked and you asked yourself: what if I had carried my umbrella? Similarly, with the future so uncertain, you can avoid the question of ‘what if’ with a term insurance policy.
Thirties: an age when everyone expects you to become more mature and responsible
At this stage, you are at a stable job. The pay is good and your future looks bright. Your boss is even hinting at a promotion. On the personal front too, things are picking up.
You may have started a family or you may be planning to do so soon. You regularly pay the monthly loan payments on the house and you are even thinking of buying a new car. In other words, you have become more mature and responsible!
Guaranteed term life insurance
But with everything going on, there is always a risk: the risk of demise. In case anything was to happen to you, it could impact your family in a big way.
No amount of money can address the personal loss of a loved one. But with a term insurance policy, you can at least take care of financial aspects. For example, your family might be used to a certain lifestyle. And the best part of starting early is that it is extremely cheap. To put in monetary terms, by paying as little as 2% of your annual income, you could get a cover of 20% of your annual income! Think about that for a second.
If you have hit your 40th year milestone without taking a life insurance policy, don’t despair. It is not too late to take out a term policy. If you are the sole breadwinner, it can be tough for your family to meet their monthly expenses in your absence. Paying day-to-day bills and taking care of regular expenses can become difficult. However, by taking out a term insurance policy, you can ensure your family maintains their current lifestyle.
And if you have already taken a life insurance policy, this might be a good time to review it.
As you get older, lifestyle and expenses also increase. This means your life insurance policy may no longer offer you the required coverage (ideally, your term policy should offer coverage equal to 5-10 times your annual salary).
A life insurance policy can be used to pay:
Debts (home loans, car loans, personal loans)
Children’s higher education
Living expenses of your family
Given the growing needs, such as family size, current income and outstanding debts, you might want to review your insurance coverage.
Fifty is a big milestone in anyone’s life. And if haven’t purchased life insurance now, you might even wonder why you need one at this stage.
This sounds like a fine argument but, this is the age a term insurance policy becomes essential. For instance, if you are the sole provider, you may want to pass on financial benefits to your spouse or your children after you pass away.
To get a good term policy at this age, you may need to do a few things:
Identify the time span for which you would require an insurance policy
Identify any pre-existing conditions you have that could affect your policy approval
Many companies have an age limit for the term insurance policies they offer. This can be around 55-60 years. If you have exceeded the age limit, you may not be able to obtain a term policy. However, it might be good to remember that the Aegon Life iTerm Life Insurance Plan allows entry even at the age of 65. Additionally, it provides cover up to 100 years.
Term life policy
With regards to health conditions, different insurers have different criteria to weigh health conditions. This means if you do have any pre-existing conditions like diabetes or a heart illness, you can look at different insurance providers to identify which company offers the best deal for pre-existing issues. This way, you can minimize expenses on your term policy.
‘Roti, kapda aur makaan’- For a long time, these were the three essentials for a human being. But today, it is not the case anymore. Term insurance is a must for everyone regardless of age and gender. If you don’t have a term policy just yet, now is the time to get one.
“Do you Need Riders?”
Now that you know how term insurance riders work, does it make sense for you to buy them? Indeed. Enabling paid features can undeniably enhance your ordinary, standard term plan.
If you think a specific rider/s match your needs and are vital for the future, do not hesitate to opt for it. You can know more by comparing and reading on the various riders in your policy to assess your requirement. Riders are critical in preventing a troublesome financial situation.
A term insurance policy is vitally beneficial to a policyholder’s family in case of an eventuality. A thorough understand of the list of riders available with your insurance company can help you identify one most suitable for you and your family. In the end, it is all about more security for your loved ones in an uncertain world.