Term Insurance - What Is In It For The Family?

The first year premium collection of life insurers rose by 9.5 percent to stand at Rs 11,026.82 crore in December 2015, as compared to Rs 10,071.80 crore in December 2014, says an article published in The Economic Times in January 2016. A life insurance policy is possibly the most important investment that you would make during your entire lifetime. It protects you and your loved ones against the uncertainties of life.

Why Buy a Term Plan?

Term plans have been gaining popularity in India as a pure life insurance product. Since it is a pure vanilla product, you get a high cover at a low cost. Moreover, online term insurance is cheaper than its offline counterparts, primarily due to the absence of third party/agent involvement. At the same time, you should be aware that it does not offer any survival benefits. However, it is most the appropriate product when it comes to securing your family’s financial future. It is fairly risk-free and lets you buy a higher policy at a fraction of the premium you would pay for other policies.

How Can a Term Policy Help You Secure Your Family’s Financial Future?

Term insurance can help you plan your family’s financial security, keeping in mind various factors such as daily expenses, child’s education and marriage, loan repayments and much more. To ensure that you do so, you must choose a cover that will be adequate to take care of every expense you can think of. Ideally, you should buy a cover at least 10 to 12 your annual income.

You must also factor in your family’s standard of living and the inflation rate. This would ensure that your family would not have to compromise on their needs due to a paucity of funds after your demise. The tenure of the policy is the second most important determinant of how well you secure your family’s financial future. It is essential to buy a policy that covers you at least till retirement. You can also choose a tenure by the end of which you expect your kids to become independent. You must choose a minimum tenure during which you expect to repay all your loans as well.

Buy a term policy and gain peace of mind that your family wouldn’t have to struggle financially after your demise. You can buy an online term plan within minutes. All you need to do is fill in the relevant details, upload your KYC documents, pay online and you are done. You can also use the premium calculator to choose the right online term insurance. It can help you calculate the most affordable premium amount.