Term insurance is one of the most popular life insurance products in India. That is because the policy provides financial security to your loved ones after your death. Besides this, term insurance is also the most affordable policy available in the market.
However, before investing in the term plan, you need to understand how it can benefit you and your family in the long run. To gain insights on the same, you need to think beyond the policy coverage. As the years go by, the financial needs of the family are bound to increase, which, in turn, will increase your financial responsibilities.
Your priorities will change over time, which may result in an immediate upgrade of your term plan. Hence, it is necessary to know the goals you should align with your term insurance plan at different life stages. Here, take a look!
1. When you are young and single
While you are young and single, you do not have many financial responsibilities over you. This may also be the first time you have started earning a stable income. However, you still have certain responsibilities towards your parents, mostly if they are retired or close to retirement.
Considering that their health is degrading by the day due to age, buying a term plan is the best you can do for them. The term insurance plan would take care of your parents financially if anything were to happen to you.
2. When you are newly married
Once you are married, you are bound to start your family sooner or later. This means that your priorities are most likely to change over time. While securing your parents’ financial future after your death, this new sense of responsibility also extends towards your spouse.
Furthermore, there could be financial liabilities, such as buying a new house or car in the near future. Having a term insurance plan will allow your family members to repay the liabilities without facing any financial crunch in your absence.
Insurers in India allow you to augment your term insurance coverage to fulfil your rising financial needs at an additional premium rate.
3. When you have young children
The birth of your children will change a lot of things for your family. At this point, you will be more concerned about your child’s well-being and future. Having a policy that is inclusive towards securing the financial future of your children in your absence is a must.
A term insurance plan will help you accomplish the same and allow your children to fulfil their dreams in the long run, even after your death.
4. When your children want to pursue higher education
As a parent, you will want what is best for your children, especially when it comes to education. However, the cost of education in India and abroad is quite enormous. Higher education can be expensive, even with prior financial adjustments in place. You certainly do not wish to see your children miss out on life opportunities due to lack of funding.
An extensive term insurance plan will ensure that the future of your children is taken care of, even when you are no longer around to help them with the funds.
5. When you are close to your retirement
You certainly must have made arrangements for your retirements by investing in different plans, if not term insurance. However, having a term plan under your name acts as additional financial support to your family after your death.
Term insurance is an ideal life insurance product if you are looking to secure yours and your family’s financial future. The policy is available in the market at affordable premium rates. In case you are worried that choosing a high sum assured might make the policy expensive, you can use the term insurance calculator to determine the same. In all, term insurance is quite popular to provide extensive coverage at a nominal price. So, don’t wait. Get a term plan today!