5 Reasons To Buy Term Plan To Protect Your Family

Securing your family’s financial future has never been more important with rising living costs and the uncertainty of life. If protecting your family’s financial security is your number one priority, buying a term plan is highly recommended, especially if you’re the main breadwinner. Keep reading to find out how term insurance plans can keep your family financially stable in the event of an untimely death.

What Is a Family Term Insurance Plan?

A family term insurance plan is a form of life cover offering coverage for loved ones should the policyholder pass away. It provides financial security for family members who are dependent on the policyholder’s regular income for everyday living expenses and other costs such as a mortgage or a child’s education.
Term insurance is a protection plan that can also include coverage for critical illnesses, offering your family absolute coverage during difficult times. Most insurers allow you to customise your term plan by adding optional riders for a more comprehensive protection plan. You can choose your policy tenure or stay protected for your whole life.
A family term insurance plan includes benefits such as adding your spouse onto the same plan or securing your child’s future education costs without it becoming a financial worry. Purchasing a term insurance plan is key to safeguarding financial independence when you’re not around to do it.
Finding the best family life insurance plans is possible when factor the various benefits of term policies.

Features of a Family Term Insurance Plan

Designed with specific features, term insurance plans ensure your dependents are secure in the future when you’re not able to support them financially. From low premium rates to death and maturity benefits, a term plan for family members offers coverage during challenging times.

Death Benefit to Beneficiaries

In the event of the policyholder’s demise, family members will receive a death benefit insurance payout. Depending on the terms and conditions of the policy, the payout can be a lump sum payment or paid out as a monthly income. Term plans safeguard your family’s financial independence when you’re not around to provide them with a regular income.

Maturity Benefits (Term Insurance With Return of Premiums)

You can choose to get back all your premiums paid during the tenure of your plan on survival when your policy matures. Known as Term Insurance with Return of Premiums, an additional premium is charged for this benefit.

Low Premium Rate

In general, family term life insurance plans are a cost-effective solution to ensuring your loved ones’ financial protection in the future. Low premium rates make this type of life cover policy an attractive package for your financial portfolio while ensuring the future stability of your loved ones. You can choose between single, limited, or regular payments depending on your income status.

Payment Flexibility

Most insurance companies offer payment flexibility, giving you the freedom to decide how you would like to pay your premiums. Policyholders can choose to pay just once while getting coverage throughout the policy tenure. Or, you can choose to make a regular premium payment monthly, quarterly, or annually. You can also pay for a limited term or until you reach 60 years.

5 Reasons to Buy a Term Plan to Protect Your Family

If you still need good reasons for buying a term plan to protect your family, continue reading. Our information will help you make a well-informed decision that will support your family’s financial needs in your absence.

1. Financial Security and Income

In the event of the policyholder’s demise, the term insurance plan payout acts as an income replacement guaranteeing your family members’ financial security and wellbeing. They’re able to maintain their current lifestyle and pay for daily living expenses, children’s education, loans, and even cover emergencies without worrying about financial safety.
The term plan features gives you reassurance that your family can relax knowing their financial wellbeing won’t be compromised because of a loss of income.

2. Senior Citizen and Spouse Cover

Senior citizens can purchase term insurance, giving full protection cover in the form of a death benefit for family members dependent on them. The maximum entry age is between 55 and 65 years old with the maturity age going up to 85. Some term plans offer extended coverage for up to 99 years.
Another reason you need to consider is being able to add your spouse to the same plan. With an additional premium, the term plan gives you the freedom to add your wife or husband to the plan for spouse cover.

3. Flexibility and Customisation

Every family has their unique needs and term plans can be customised to meet these requirements. Insurers offer their clients flexibility when picking features, payment options, and policy tenure according to their own financial needs.
Other attractive customisable features include the option to increase your coverage by a certain percentage or at key life milestones. Getting additional support for children’s educational needs is another benefit that can be added as well as opting for riders for extra protection.

4. Helps to Cover Loans for Big Living Expenses

One of the biggest fears of losing an income because of the main provider’s sudden death is leaving the family with unpaid loans or liabilities. Overnight, your loved ones could be saddled with a mortgage, vehicle or education loans that needs to be paid to avoid running into debt.
The term insurance plan gives your family the financial means they need to pay off big living expenses without stressing they’re going to lose the roof over their heads. With term insurance, families can fulfill personal life dreams even when the main breadwinner has passed away.

5. Savings: Tax Benefits and Affordable Cover

According to Section 80 (C) of the Income Tax Act, 1961 in India, you can get a tax deduction on your paid premiums. This gives the policyholder an opportunity to save during the policy tenure. Death benefit payouts aren’t taxable according to Section 10 (D) of the Indian tax laws.
The features of a term plan include high coverage at an affordable premium rate, giving more value for your money. Term insurance plans are one of the most affordable options for life cover for most families with flexible payment features which amount to substantial savings in the long run.