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  • Think you don’t need term insurance? Read on

    Published on January 21, 2020

    Although the insurance sector has flourished in India, many of you might still be kept in the dark about several insurance policies. When you go to choose a life insurance product, your insurer might only show popular traditional options like endowment policies, whole-life policies, money-back plans, and so on. Due to the wide acceptance of these insurance policies, term insurance is an under-rated insurance plan.

    According to a survey, only 5% of the Indian population purchases a term insurance policy. A term plan is a pure protection plan, which can offer financial assistance to your family in your absence. Apart from financial security, you can receive many term insurance benefits for you. Therefore, let’s go through each and every benefit of a term plan provided to you:

    1. You can clear your past liabilities

    At a young age, you might have borrowed loans from the market to meet your financial goals. For instance, you might have taken a travel loan to explore new cities, a student loan for your higher education, or a business loan to start your new venture. When you have liabilities at a young age, you should clear it during your active working years. If you are unable to pay your past debts, you should purchase a term plan, which can offer you with a payout to clear your financial burden.

    1. You can receive a comprehensive coverage

    A term plan works towards the financial security of your loved ones in the long run. Due to the prime aim of family protection, it can provide your loved ones with a payout called death benefit. The death benefit can be given to your family members only in your absence. With a term plan, your family can obtain comprehensive coverage to live comfortably after your demise. As the nominees, your family can receive the death benefit as a monthly income or as a lump-sum amount.

    1. You can pay a low price

    A term plan can be an affordable option compared to other life insurance products. When you purchase a term plan, you can receive a high coverage at a low rate. However, purchasing a term plan at a young age can be relatively cheaper. During the early phase of your life, you can be less prone to severe health conditions like cardiovascular diseases, kidney failure, and so on. Since you can be physically fit at a young age, your premiums can be low.

    Many insurance providers have introduced smart term insurance plans with added benefits. Smart term insurance is comprehensive coverage that shields you from the eventualities of life. Besides, it can provide you with the following advantages as mentioned below:

    1. You can cover your spouse

    When you get married, your partner might depend on you financially. Although both of you can be earning, you might have to ensure your spouse remains financially secure in your absence. Hence, you should purchase a smart term plan to cover your partner from the financial setbacks after your demise. That way, your partner can live comfortably without any financial constraints when you are not around to provide for them.

    1. You can look after the educational needs of your children

    Parenthood can come with a lot of responsibilities. Until and unless your children settle financially, they would depend on you to meet their financial requirements. With a smart term plan, you can fulfill each and every goal of your child as they reach the most crucial milestone of their life: education.

    1. You can increase the life coverage

    Since your life is divided into specific milestones, your financial needs can depend on them. For instance, when you get married, you might have the additional financial responsibilities of your spouse and children, unlike your bachelorette phase. Therefore, you can buy a smart term plan to protect the financial needs of the dynamic life stages by increasing the coverage at every step.

    To sum up, the life of every individual can be full of drastic twists and unannounced emergencies. While you might not be able to control the unpredictability of life, you can prepare financially to deal with any challenge that life can throw at you.

    To help you with the eventualities of life, you should buy term insurance for your financial happiness in the future. Whether you want to purchase a regular term plan or smart term insurance, identify your family’s needs, and compare different plans in the market. Moreover, you can consult a professional to help you understand what is term insurance in detail.

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