Why Is Term Insurance Important for Your Family's Security?

A Term Insurance Plan is the purest type of life insurance that is used to cover an individual for a specific period and offer a lump sum payout to the family in case of eventualities. Every individual must consider Term Insurance Plan at a very early stage in life to ensure the family's security. How does Term Insurance help in this regard? Let us try to understand them better.

What is Life Insurance?

Life Insurance is an official agreement between the insurer and the insurance company. The insurance company gives complete financial protection to the insurer against the regular payment of monthly premiums. Based on the plan chosen, the insurance company will either pay a lump sum amount or a regular payout to the family in case of the policyholder's death.

What is Term Insurance?

Term Insurance is the basic type of Life Insurance wherein the family will be paid a death benefit in case of the policyholder’s death during the policy term. It is highly affordable as the premium amount is very less compared to other life insurance plans. However, there is no maturity benefit associated with a term plan.

Why is it vital for your family's security?

There are many reasons for taking up this plan to secure your family. Let us discuss them here.

1. Uncertain Death – You might be the only breadwinner of the family. In case of your death, the family’s financial security might be severely affected. In this case, you will have to protect your family and plan financial commitments much earlier. A Term Insurance can secure your family’s financial future by paying a fixed sum assured amount in case of your untimely demise.

2. Critical Illness – When you are diagnosed with a critical illness, and if the treatment requires a huge amount, there will be a financial set back on the family expenses. With an additional critical illness rider to the Term Insurance policy, you can benefit from increasing the coverage and getting paid for the treatment.

3. Disabilities – It may so happen that there is no actual death but a lifetime disability in some cases. The disability rider will address this issue by allocating a lumpsum amount for tackling the medical expenses and loss of income caused by a permanent disability to the primary breadwinner.

Thus, Term insurance plans are best suited for people falling under the following categories:

• A person with no sufficient investments or corpus planned for the family.
• A person having have debts like an education loan, car loan and a home loan and wants to ensure a debt-free life for the family.
• A person having major future commitments like children's education and marriage.
• A person who is the only breadwinner of the family.

The best time to get yourself insured with term insurance is young, around 25 years of age. The benefit of doing so is that you can get a larger cover by paying cheaper premiums as you are not bound to have any illness when you are young. Also, at a younger age, the premium can be fixed at low rates for the entire period. You can avail online term plan easily by visiting the website.

Summing up

Family Term Insurance with various riders and features have been provided as different plans. You can always customize or enhance the plans based on the provisions provided. For example, increase the coverage by a certain amount every year, include your spouse under the term plan, and comfortably pay premiums for you. There are also options to increase the life coverage at different stages in life, like when you get married and when you become a parent. The family has to choose based on their income, the number of dependents and risks tolerance levels. You can buy term insurance online by providing the necessary details. It is easy to understand and comfortable to access.