How to Decide the Term of Your Term Insurance Plan?
Life is full of twists and turns, which together make it a long interesting journey. However, you do not know when life can draw its curtain on you.
So it is important that you live every day to the fullest. Along with this, knowledge also tells that you should keep your loved ones safe while you are still there so that they can live a decent life even after you leave.
For this, you need to give them the most financial stability. This means leaving them with financial support and resources that can help them stand on their own after a crisis.
Since, no one knows when that moment can catch you, it would be wise to be well prepared beforehand.
For this purpose, you need a term insurance plan, which can provide financial coverage to your family after your demise. So, to get started, help us understand what a term plan is.
What is a term plan?
Under this, you only have to pay the premium for the time, as long as the term lasts. Also, a point to consider is that your family will only receive maturity benefits if it expires during the period.
A term cover is one of the most reliable and economical ways to secure your loved ones. If you pass through the period it provides a specific sum assured to your family in your absence.
This means that this period is important when purchasing the most appropriate insurance cover for your loved ones.
5 important features of term plan
Therefore, for this purpose, various aspects should be considered before deciding the term of your term insurance. Some of them are as follows-
1. Liabilities
You may have taken out some loans or mortgages that may still take a few years to pay off. To ensure that the burden of paying these does not fall on your family in your absence, make sure that the wording of your policy covers this aspect.
Suppose you have taken a loan, which says it will take 20 years to repay. In this case, it would be wise to go for a life cover that has a minimum duration of 20 years.
2. Dependents and Commitments
At the time of purchasing a term cover, you may have children who may be too young to support themselves or older parents who depend on you.
In this situation, it would be good to take a long-term view and buy a policy that will cover all the years in which you will need to give them financial support.
For example, when purchasing a policy, you may have children who are still in school.
Given that it will take another eight to ten years for them to become financially independent, you can go for a plan that has a minimum duration of ten years.
This will ensure that if God forbid, you meet with an untimely death within this time frame, your dependents will receive financial support to sustain themselves.
3. Affordability
Long term planning does not mean that it will be right for you. As you are required to pay the premium throughout the term, a longer term would mean that you would have to pay the premium for that longer period.
So, the sensible option would be to choose the appropriate word for your plan, so that neither your loved one has to face any trouble nor do you have to bear unnecessary burden.
Also, compare it with other plans before purchasing, so that you can get the best insurance plan for your loved ones.
4. Length of support
This amount assured that the policy would help your family the most during the crisis period. Therefore, you have to decide whether your family will need support until they are back on their feet, or after you are gone for several years.
Depending on the condition of your family and your ability, you can choose the right period.
5. Protect your family's future properly
Life is uncertain, but a little preparation can go a long way in securing your loved ones. Therefore, after considering all the factors, take the right decision and buy the best term insurance plan for your family.
Reputed insurers like Max Life Insurance provide comprehensive coverage at affordable premiums.
They also provide an option to add benefits such as accidental death and dismemberment, premium waiver, and critical illness cover.
Therefore, by purchasing the right term cover for your family, you can assure the safety and happiness of your family, even in your absence. Therefore, do not hesitate and buy the right cover as soon as possible.
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Finance