Life is uncertain and demands can strike without warning, leaving individuals and families in financial straits. The recent coronavirus pandemic that killed nearly 2.5 million people around the world is proof of this.  The death of a family member not only has a physical, mental and emotional impact on other members, but also triggers financial uncertainty. That is why it is essential to prepare for such events. It’s here that term insurance could step in to provide a safety net.
Term insurance is a kind of insurance that a policyholder purchases, so that their family receives financial benefits upon their death. The policyholder can decide on an amount to be paid to his agent (s) in the event of his premature death.
The benefits of term insurance go beyond simply providing living expenses to a policyholder’s applicants. Term insurance can also make it easier to achieve important financial goals for the family. If you are the breadwinner of your family or if you contribute significantly to the household income of the family, then it is a good idea to go for a term insurance plan. In addition to the greater benefit of financial protection for your loved ones, term insurance also offers you tax advantages.
Today there are several term insurance plans that specifically meet the needs of the policyholder and his family.
Why buy term insurance
It is said – “One point in time saves nine”. In other words, it is important to be prepared to face any adversity. With term insurance benefits, one can be assured that their family will be protected, even in their absence.
Here are some reasons to invest in term insurance –
• Protect your family: The biggest concern that leaves most people sleepless is “what will happen to their families once they are gone?” Fortunately, term insurance can take care of this aspect and can guarantee a constant cash flow even in the absence of the policyholder subject to the terms and conditions of the policy. This means that the policyholder’s family does not have to compromise with their lifestyle. The payment that the policyholder’s family receives can be used for monthly expenses or essential life goals, such as raising the children or getting married.
• Protect assets: To live a comfortable life, you need a car, a house and other such facilities. If these assets were acquired with the help of a loan, which is true in most cases nowadays, these comforts can turn into liabilities. With adequate term insurance, asset protection does not become a concern for the policyholder’s family or nominees. The sum insured that is guaranteed by term insurance plans can be used to pay off debts. Be sure to take your responsibilities into account when applying for term insurance as well.
• Protection against serious illness: We live in a fast-paced world, where most of our time is spent in front of a screen. Life has become very sedentary and the consumption of junk food is increasing. This has led to an increase in the incidence of several diseases and lifestyle conditions like cancer or heart disease, which was probably not the case before. This means that a lot of our spending is on health care and it could become a financial burden if you get seriously ill. Therefore, in addition to the death benefit, term insurance plans offer the option of choosing additional critical illness coverage at minimal additional cost. Critical illness coverage can help the policyholder through a lump sum payment if they contract one of the specified critical illnesses. This amount can be used for treatment, as an income replacement or for any other purpose.
Types of term insurance plans
There are different types of term insurance plans that you can choose from. You could opt for a basic term insurance plan, which is the simplest form of life insurance. In this case, the insured pays a premium amount to the insurance company and following the sudden death of the insured; the insurance company pays the sum insured to the agent (s).
You could opt for a growing term insurance plan where the sum insured keeps increasing during the term of the policy. The opposite of this variation is a decreasing term insurance plan, where insurance coverage decreases over the life of the policy. Such plans are relatively cheaper and are generally suitable for providing protection against unpaid debts, such as a home loan where the insured amount decreases as you pay off the debt.
If you are looking for a policy that covers both you and your spouse, then you might consider a joint term life insurance plan. In this type of term insurance, two members are covered by the same plan, so the two do not have to take out separate plans.
Choose the right service provider
If you’ve decided to purchase a term insurance plan to protect your family from the uncertainties the future may bring, you’ve made the right decision. However, it is an equally important decision to choose the right insurer that protects the interests of your family even when you are gone.
You might consider term plans from Bajaj Allianz Life Insurance, a trusted life insurance company that has a 98.02 percent claims settlement rate ~. In addition, Bajaj Allianz Life Insurance offers a wide range of term insurance plans to meet all your needs, which can help you, secure your family and achieve their life goals. Bajaj Allianz Life Smart Protect Goal – An unbound, non-participatory and pure goal life insurance plan offers you coverage of 1 Crore @ Rs. 18 per day[#]. You can choose from four variations depending on your needs, and it covers 55 critical illnesses ^. You also get the premium refund option ^, additional coverage for children’s education ^ and a 3% discount on purchasing this term plan online. [$]
So, without wasting time, secure your family’s future now by purchasing a term insurance plan for yourself that best suits you and your family’s needs. It would help you bring some certainty to your family’s life amidst all the uncertainty around us.
# The illustration above contemplates a 25 year old man | Non-smoker | Variant of life cover | Policy term (PT) – 30 years | Premium Payment Term (PPT) – 30 years | The sum insured chosen is Rs. 1 00 000 000 | Online channel | Method of payment of the annual premium | The premium shown above excludes Goods and Services Tax / any other applicable taxes levied, subject to changes in tax laws, and any additional premium and is for illustration purposes only. For more details on risk factors, terms and conditions, please read the sales brochure carefully before making a sale.
^ The above mentioned product features / benefits depend on the variant
$ Discount is available for regular premium and limited premium payment frequency under all variations of this product.
~ Individual claims settlement ratio for fiscal year 2019-2020