Term Plan: Do I Really Need It ?

Ask this valid question from yourself today if you are married and having dependents on you. What would happen to my family if something happens to me? Who’ll take care of their financial needs & will pay the debts if am not around. How would they be able to sustain a peaceful life when there is no income source after me? Who will take care of the basic needs of my family if the sole bread earner is gone?

You’ll have the answer..

A term plan is a must buy product to take care of all above conditions.

What is a Term Plan?

A term plan is an Insurance plan which covers your life and in case of death gives the amount to your nominee assigned as per the policy and amount is equal to the amount you have taken. I.e. if you go buy a term plan of Rs 50 lac for yourself and in case you die, your nominee will be paid Rs. 50 lac .So it’s a basic life insurance cover plan which pays back only in case of death and get no returns etc. So whatever premium you pay for this plan, you will get no returns but if you die then the cover amount/Sum assured will be paid to your nominee.

What is the right age to buy a term insurance plan?

A term plan can be bought at any age till 65 years; however, as the age grows, the premium for your term insurance policy would reach its peak. Hence, it is advisable to buy a term insurance policy in your early 30s to avoid a hefty premium amount later.

How much cover should I opt for?

The right amount of coverage should be decided after keeping a few things in mind such as your current monthly expenses including any debts payable by you. Never forget to think of the high inflation rate before deciding on your life cover. Think of the amount keeping inflation along with your current expenses in mind that can replace your income if you are not there and help your family lead a peaceful, respectable life.

Which Insurance company to buy it from?

Almost all the insurers provide with a similar kind of a product with a slight change in the features. Check with 3 or 4 maximum and go for a customized plan keeping all your requirements in consideration.

Other things to remember while buying a term insurance plan:

- Do not buy a shorter term plan for 15-20 years of term. It’ll not solve the purpose of its kind of a plan as life risk increases as the age grows.

- Cover yourself at least till the earning age.

- Covering yourself till the age of 80 or 85 years would not make much sense as the loss of life doesn’t affect your family financially when your earning age is passed.

- Keep the inflation factor in mind and choose a plan that increases the cover with inflation.

- It’s not necessary to buy sufficient cover from one insurer only. Two or three different customized term policies can be bought from different insurance companies considering all risk factors of your life.

An adequate insurance cover for yourself can protect your family from financial crisis when you are not around. Come at Bima Deals and find the all solotions for your queries about term plans.