One pandemic has passed, and while it was catastrophic for everyone, it left behind certain considerations for future planning. It has brought out how important it is to financially secure the future, not only for yourself but also for your family. So, are you also planning to secure your family’s future? Life’s unexpected situations come knocking like uninvited guests, and you may not like them, but you must attend to them.
Likewise, a death benefit is something nobody wants to take advantage of when investing in term insurance, but it is a must. Let’s learn more about term insurance plans.
Why Buy Term Insurance at All?
Term life insurance protects a predefined phase (e.g., a decade, two decades, or three decades). It offers a sum assured to whomever you appoint as beneficiaries. Here’s why including term insurance in your financial plan is a wise decision:
1. Affordable Protection
Term insurance plans are popular because of their affordable premiums, especially when you consider the substantial coverage they provide. They are a great option if you’re beginning your career or have limited financial resources.
2. Flexibility
Term plans offer a variety of coverage options and policy terms to suit your specific needs and budget. You can choose a policy that aligns with your financial goals.
3. Streamlining Your Finances
Term insurance helps you prioritise your financial goals. By securing your family’s future with an affordable plan, you can free up your finances to focus on saving and investing for your long-term aspirations.
Types of Term Insurance Plans
Once you’re over the “Do I really need it?” question, you must find a suitable insurance plan. While there are many options, explained below are a few types for better understanding:
1. Decreasing Term Insurance
This plan is designed to match your reducing liabilities over time. The sum assured in decreasing term insurance plans gradually drops throughout the policy’s duration, often mirroring the declining balance of a home loan. It provides a cost-effective solution for individuals with substantial debt that they want to ensure is covered should an unexpected event occur.
2. Level Term Insurance
It constitutes the simplest and most popular of all term plans. The policy maintains a fixed sum assured across the length of the term. Such a plan is ideal if you have dependents relying on you or have outstanding loans that demand coverage. For those with stable salaries and responsibilities, level-term insurance can give peace of mind during vulnerable periods. It guarantees a set payment regardless of fluctuating health or work.
3. Increasing Term Insurance
Increasing term insurance is especially for those who have growing financial needs. An increasing term insurance plan offers a sum assured that grows at a pre-determined rate throughout the policy term. These plans have a slightly higher premium than a level-term plan but can offer sufficient benefits.
4. Convertible Term Insurance
A convertible term plan allows you to transform your term insurance policy into a whole life insurance plan. This can be done at a later date without undergoing fresh medical underwriting.
Such term insurance plans are beneficial if your financial situation changes and you decide you need lifelong coverage. However, they come with slightly higher premiums compared to regular term plans.
5. Leverage Term Insurance Plans for Financial Security Today!
Being prepared for life’s unpredictability does not call for huge steps but wise financial planning, and term insurance can be an essential part of this plan. When buying one, consider insurance-providing companies like Canara HSBC Life Insurance. Are you wondering how? Well, they are one of the top insurance providers in the market.
They offer a range of online term insurance plans to explore and buy. In addition, they also offer a variety of online calculators.
