The Importance of Term Life Insurance at Every Life Stage
Future planning is a tricky process. Sometimes things that you plan happen exactly the way you want them to and sometimes it doesn’t. At times, unfortunate or unforeseen situations may occur which are beyond your control. Such situations can spoil your entire planning, especially on the financial front. But that doesn’t mean that you stop thinking about having a financially secured future for yourself and your loved ones. To make future planning easier, today there are a lot of insurance policies available in the market. However, one of the most preferred kinds of insurance policy is the term life insurance plan.
Wondering what it is and why term insurance is better?
Well, in simple words, a term life insurance plan covers the insured for a set tenure at a fixed premium rate. In such insurance plans, after the specified tenure gets over, the coverage expires. At that juncture, the insured can either let go of the insurance cover or renew the plan with revised premium rates. With the renewal of the insurance plan, even the terms and conditions of the policy get renewed.
Importance of Term Life Insurance at every life stage
A term life insurance plan is an affordable and effective way of stabilizing the financial future for yourself and your family. This plan applies to every stage of life, which makes it pretty necessary to have. Some of the best reasons why you need to have term insurance at every stage are: –
- Recently Employed
Well, who doesn’t love receiving their first paycheque? Paychecks make everyone happy. However, saving a part of it is also very important. And there’s no better way than investing in a term insurance plan. Investing in term plans at an early age is considered beneficial as the premiums are considerably lower due to low health risks. This form of life insurance is curated to offer extensive coverage at reasonable premium rates. While the premium rates differ from insurer to insurer, the plethora of options will help you select the best of the lot. Adding to this, you will also be eligible for tax benefits under Section 80C of the Income Tax Act of 1961. However, do check the terms and conditions thoroughly.
- The Newly Married Phase
Getting married and having a fun-filled and enjoyable life with your spouse is something that everyone dreams off. But, getting married is a task in itself – financially. People often take personal loans to make the wedding functions grand and memorable (after all, it happens only once in your life). Other than this, some people also opt for house loans to buy a dream house with their spouse and so on. The increase in such liabilities also increases responsibilities. It does become a little difficult to save money for the future if the EMIs are more. And if any unfortunate incident occurs, the entire burden falls on to the shoulder of your better half. That is why term life insurance is a must to keep you covered. It will keep your spouse stress-free and financially secured, enabling them to pay regular EMIs of the loan.
- Becoming Parents at a Young Age
Another reason why a term insurance policy is essential is securing your child’s future and ensuring that their dreams get accomplished. If you become parents at a younger age, make sure that you get a term life policy immediately. Although you do invest in financial verticals which ensures that the apple of your eye – your kid(s), gets the best of everything; however, a term plan comes handy in your absence. The claim amount that your family receives is substantially big, and hence enough to take care of both your financial liabilities as well as the daily expenses, without letting your kids compromise on their dreams.
However, irrespective of whether you are single, newly employed, a young parent, or have older parents, it is essential that you are financially prepared, to make sure that your loved ones lead a secured future in your absence. To know more about investing in a term life insurance plan at a different life stage, you can visit BimaKaro.in, which offers different term plans as per your requirements and life stage.