When you think of providing for your loved ones, health and wealth are two aspects that create the foundation for a secured and happy future. Of these, wealth is what you work hard for, and want to actively provide for your common as well as individual goals and dreams.With the nature of life being ever-changing, it is also necessary to secure this wealth so that your family’s future does not have to look bleaker when you are no longer around. Term insurance can be a way to do that. Term insurance offers the idea of a financial safety net cast by you for your loved ones. But before that, it is important to know what a term insurance means and the benefits it provides.
Here are four ways how term insurance helps you secure your family.
This is the elemental benefit offered by term life plans. You cannot look into your future, but you can have some safety nets in place so that the impact of any blow is minimized. When it comes to securing the financial wellbeing of your loved ones, term insurance offers a simple solution.
Choosing the right sum assured and paying your term insurance premiums regularly can help ensure that your family receives the benefit you have secured for them. Even in your absence, they can continue to fulfil their dreams. You can use a term insurance calculator to figure out your premiums at your desired sum assured.
When you are trying to secure your family’s future, you do not want to do it at the cost of their today. If a large portion of your income is funnelled into insurance plans, then it may affect your present goals and needs.
Term insurance premiums are one of the most affordable options available today. While there are variants of term plans that may earn you more features, if you want to ensure lower costs, level term plans are your best option.
Apart from term insurance premium benefits, the plans may also offer tax exemptions on premiums as well as the death benefit. Thus, you and your family can avail of some tax benefits while also ensuring a better future.
One of the primary aspects of term insurance, or most life insurance plans, is nomination. This is a process through which you can choose who receives the death benefit from the policy. It is ideal to name a nominee when first buying the term plan, but you can also choose this at a later date. Furthermore, you can choose more than one nominee. Some plans may let you decide how many shares of your death benefit each nominee may receive.
In case you are naming a minor nominee, you will need to appoint an adult guardian who will take charge of the death claim and benefits on their behalf. Thus, if you want to leave something for your child and they’re too young to assume responsibility, you can choose a reliable adult. This feature of the plan may not seem like much, but when used with discretion, it will help you decide the course of your family’s financial situation.
Riders & Benefits
The most known term plan benefits are either their low premiums or their simple design. While this is not inaccurate, there is much more to these plans. Depending on your plan type and insurer, there is a range of riders and benefits you can avail of.
Accidental death, permanent accidental disability, critical illness, terminal illness, and premium waiver are some of these. Of these, the term insurance premium waiver allows the premium payments on your policy to stop after your demise. Thus, if you are no longer around, there is no need for your family to worry about another financial obligation.
Critical illnesses are conditions that put your health at risk and require medical attention, possibly lasting a longterm. This may hurt your work or income, and also put your family under financial stress. A critical illness rider can pay a part of the sum assured upon the diagnosis of a critical illness. Thus, your family and you can focus on your recovery, while the finances get taken care of.
Taking care of your family is a multifaceted pursuit and needs your attention regularly. Financial wellbeing is one of these facets. By getting a term plan, you can leave behind the worries of their tomorrow, and stay fully present to experience the joys of today.