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Just in case you think that having ample savings and investments is the answer, you need to think again. Without adequate life insurance from a life insurance policy, your family remains financially vulnerable despite great investments.
The gap that your investments can’t bridge
Your regular pay covers your regular expenses such as those related to monthly groceries, children’s school fees, electricity, and mobile services. You need to dip into your savings for big-ticket items such as buying a gadget, car or even a home. But this changes dramatically with an untimely demise of the breadwinner.
Then, despite savings and investments, it is very unlikely that they will be able to cover the family’s expenses over a long period of time. Remember, in case of the untimely demise of a person at age 32, the family is losing out on income and investments for a period of 28 years if he were to work till age 60
Clearly, you need something that’s much more than investments to take care of your family in case of the unfortunate event of untimely death. This is where life insurance comes in. With the help of a life insurance policy, not only are your family’s regular needs met even in your absence but major future needs like a child’s higher education and marriage, besides spouse’s retirement, are met.
This also means that in your absence, your family doesn’t need to dip into accumulated savings made with regular investments. Instead of the money getting eventually used up, it can keep growing, as life insurance money will help meet the family’s various needs. In short, life insurance is a must for protecting your family’s future.
Why you need a term plan?
There are many types of life insurance policies available. If you are starting out buying life insurance, you could make a beginning with a term life insurance plan, also popularly known as term plan. These plans provide high life insurance coverage at affordable premiums. You can save some more on the premiums by buying an online term plan.
Being highly affordable, term life insurance premiums also ensure that you have enough disposable savings which can be directed towards various investments. The other great thing about term plans is that life insurance coverage exists for very long periods of up to 40 years. This ensures that you manage to save adequate amounts by the time life insurance coverage gets over. All this brings us to the obvious question “how do you buy the best term insurance plan?”Here are some quick tips.
Get the best Term Insurance!
In order to get the best term insurance plan, you need to look beyond just the premium and also consider aspects like the company’s track record in settling claims. This information is available on the website of the insurance regulatory body, Insurance Regulatory and Development Authority of India (IRDAI). Also, get information about consumer grievances that insurance companies need to publicly disclose. This will provide a picture of the experiences of consumers with different insurance companies.
You need life insurance to form the base of the financial pyramid before you proceed to make your investments. A term plan provides your family finances the solid foundation it deserves. Thanks to the affordable premiums, it also provides higher disposable savings to help you concentrate on your investments while keeping your family secure.
Disclaimer: Life Insurance coverage is available in this product. Max Life Online Term Plan Plus is a Non-Linked Non-Participating Individual Pure Risk Life Insurance Plan (UIN - 104N092V04). It provides only a death benefit and no maturity or surrender benefit. For more details on the risk factors, terms and conditions, please read the product sales prospectus carefully before concluding a sale.
ARN:- ARN/Web/01