The hectic professional life and poor lifestyle habits are taking a toll on people’s health. Besides this, the widespread of the Coronavirus (COVID-19) pandemic has made life uncertain. The untimely death of many people due to COVID-19 has made everyone realize the need for having a life insurance policy to safeguard their family’s monetary well-being. If you are looking for insurance plans to secure your life, it is advisable to buy term insurance.
A term plan is a pure life protection plan that pays the death benefits to the nominee upon the untimely demise of the policyholder. Term plans are one of the most sought-after insurance plans, as they offer a high sum assured at pocket-friendly rates. One of the best things about a term plan is that anyone can afford to invest in it. Besides this, the term insurance tax benefits make it a popular insurance plan. If you wish to buy a term plan, you can seek the help of a term insurance premium calculator to determine the required coverage, tenure, and premium based on your needs.
Factors to Consider While Purchasing a Suitable Term Plan
Here are a few aspects that you should be aware of to buy the best term plan:
Focus On Your Financial Objectives
Every person has different requirements and life goals. It is pivotal to determine the sum assured of your insurance policy while buying a term plan. Here, it becomes important to ascertain your financial needs and long-term objectives. For instance, if you are the sole breadwinner of the family and have many people like your parents, spouse, and children dependent on you, then the sum assured of your term plan should be considerably high. The sum assured should be such that your family can live a financially independent life even if you are no longer around.
While ascertaining the sum assured, it is necessary to consider the cost of children’s education, their wedding, and medical bills of your elderly parents. You do not want your loved ones to face financial hardships or be dependent on someone else when you are not there to take care of them. Hence, you need to identify your short-term and long-term monetary aspirations while buying a term plan and opt for an ideal sum assured accordingly. A term insurance premium calculator is an efficient tool to help you figure out the premium that you will have to pay for a particular sum assured.
Determine Your Liabilities
You do not want that your dear ones bear the burden of your liabilities during your absence. So, create a list of all your outstanding obligations, such as a house loan, car loan, and personal loan, and make a total of them. Ensure that your sum assured is more than your debts so that your family can repay them in case of an untoward incident.
Compare Various Term Plans
You will find many insurance companies in the market offering term plans. Therefore, it can be a daunting task to select a perfect term plan that can meet your requirements. You can analyze the features and benefits offered by multiple policies on the Internet and shortlist an appropriate term insurance plan as per your financial goals and needs.
It is essential to secure your family’s financial well-being, as life is unpredictable. A well-planned financial portfolio can act as a backbone for your family members to meet their life goals even if you are not with them. As a term plan offers a high sum assured at a reasonable premium, you can provide the much-needed financial security to your family by investing in it. Besides this, you can avail of term insurance tax benefits. So, what are you waiting for? Do not jeopardize the economic future of your loved ones and buy a term plan as soon as possible.