Purchasing an online term plan is an affordable way to ensure the security of your loved ones who are financially dependent on you. A term policy is a life insurance cover that the insurer pays to the policyholder’s nominees when they make a successful claim in case of an untoward event.
While choosing your term plan, keep the monetary needs of your family members in mind. Here is a guide for buying a term plan depending on your age and life phase.
Unmarried and Young
Being unmarried and young means there is less financial burden on you. However, if you are the only earner in your family, remember about the requirements of your aging parents. If you have a sibling, consider his or her financial safety, too. For this reason, you need a term plan, which will cover the financial liabilities of your family members if you are absent due to any unforeseeable incident. In this situation, it is advisable to opt for a term plan with a lump sum payout alternative. Here, the sum assured will take care of your parents’ medical expenses as well as your sibling’s life goals.
Married Without Children
Getting married is a costly affair. Once this new stage of life starts, you may have to opt for some loans to buy a house or a car. You may even need to take a personal loan to meet the financial demands of a new household. This is why you must buy a protective life cover so that your spouse does not need to repay these monetary obligations in your absence. The term insurance in India comes with two death benefit options lump sum and monthly payout option. If you opt for the latter with the increasing income mode, the insurance company will pay your spouse the sum assured in installments over several years.
Married with Children
Having children means you are responsible for their life. This includes their education, wedding, and other ambitions. You may plan everything, but life may have other ideas. Imagine if you are not present. What will happen to your children’s future? Even if your spouse has a regular income source, it will not be enough because India has a high inflation rate. Buying a term plan can be the best way to ensure that the objectives of your dear ones will be achieved. Experts suggest that people who have children must opt for a sum assured that is 20 times their yearly income. With that money, your children and spouse will not have to compromise with their dreams in your absence. Additionally, you can opt for a monthly payout alternative under the term policy to provide for your family’s daily costs.
Close to Retirement
While the retired life can be a freeing experience, it can also come with many worries. You need a significant amount of savings to maintain your lifestyle after retirement, as your medical expenses are likely to go up. Purchasing a term plan ensures that your dependents do not suffer due to a lack of funds when you are not around. Look for a term life insurance plan that comes with a return of premium benefit. This is useful if you survive the policy term as a pure term plan does not have any maturity benefit.
A critical illness can occur at any period of your life and topple your plans. If you wonder how a term policy can help you, it is time to learn about riders. A critical illness rider is an additional coverage, which you can purchase with your existing term plan. If you are detected with any of the diseases included in your policy, the insurer will pay you a lump sum to take care of the treatment-related costs.
Now that you have a better idea about what kind of online term plan you need according to your current life situation, it will be easier to find a policy that meets your needs.