How often have you heard life is full of unexpected happenings, and death is inevitable? If you are the single breadwinner of the family, you must be worried about this phrase on life and death. What will happen to your family in case anything happens to you suddenly? Who will pay for your child’s education? Who will take care of your spouse? How will your old parents survive? All these thoughts are quite natural to bother you. While it is true that the absence of a loved one cannot be fulfilled but financially you can strengthen them, in your absence, you can give them a good life if you have a term insurance plan.
Insurance is a fundamental tool of your investment and security cover for you and your family. Although there is no financial benefit from term insurance plans as long as you are surviving, people prefer it due to financial security it provides to their families in the event of their demise. The sum assured is payable to the beneficiaries when you are no more. The payout will either be in a lump sum or monthly payments to the family members as it suits you. You should opt for the best term insurance plans that have some features which are beneficial to you. If your budget is limited and you cannot pay a large sum in just one day of the year, then go for a monthly based premium payment. It will be easier for you that way to pay the premiums for more considerable sum assured.
While buying the best term insurance plans, you should compare features, not just the lump sum amount of premium you are going to pay. It is advised that if you choose life insurance, you should look for best term insurance plans. For investment and sound returns, there are other avenues such as mutual funds, fixed deposit and so on. Remember, the premium you pay now will benefit your family with a higher return later when you are no more around. So do not compromise on the coverage amount.
Before investing in term insurance plans, you must look into its various features. Sum assured is one of these features. Sum assured is the scope of coverage provided by a life insurance product. Sum assured a should be of such sum that is sufficient to cover all the financial needs of your family after you depart. According to experts, the sum assured should be about 10 to 12 times more than the annual income of yours at present. It must ensure that even after you are no more, the family continues to enjoy the same level of income and standard of living. Sum assured is very fundamental and a yardstick before you begin making payments for a term insurance plan.
Inflation is another thing that you must take into consideration. Have, the is a rise in prices of commodities over the years. Since term insurance is concerned about your future financial coverage, the financial coverage must encompass inflation and a general increase in prices of products and services in the future. Without this, it cannot be said to be futuristic. A proper financial corpus must be formed by the time your family requires it. You can take the advice of an excellent financial expert who can guide you with this. The expert can tell you how much you will exactly need for your family after 10-12 years or more than that. Your family should not be undercovered in that time of remorse.
The best term insurance plans ensure flexibility of payments to the nominees in a suitable term pre-decided by you and as it suits the beneficiaries. The accumulated money can be disbursed in two ways. It can be disbursed either as a lump sum payment at one time or in the form of regular monthly payments to the needs of the family. Choose a responsible person to be your nominee — someone who is well-sounded with financial management. The person can be your spouse, child or parent. Choose someone who will be able to use the money wisely and take care of others in your absence. There are many untoward stories about a family member being selfish and not taking care of the others behind the breadwinner of the family.
For this reason, many people go for more than one term insurance plan. If you can afford the premiums of more than one term insurance plans, then go ahead, get them separately for your family members. For example, you can have one for your spouse and another for your children.
The term of the plan is also an important factor while selecting term insurance for you. You should begin early so that your family gets the full benefit. Search an insurance plan that has a shorter waiting period. Also, check the claim settlement ratio of the company. This will give you a vivid idea about the company offering you the term insurance. You will not want your family to run about for the assured sum in your absence and finally get nothing. Go for a good and trustworthy company.
Hence, the features of term insurance plans are more important than the premium to be paid. So do not compromise on your family’s future and buy a term insurance plan today!