You love your family and want the world for them. You will do everything in your power to make them happy.  So, naturally, you would want to make sure that your family is comfortable and well-off, even in your absence. And for that, it is absolutely essential that you get the foundations of your finances right. The first step towards a better, secure future for your dependents and loved ones is to buy a Term Plan.

A term plan or a life insurance plan is an umbrella to protect your dearest ones during rainy days. You, as a policyholder, pay a premium towards the policy for a certain amount of time. And if anything tragic or untimely happens to you, the family gets a fixed sum assured, as chosen by you. Having a Term Insurance Plan not only indicates sound financial planning but also ensures that the dreams of your loved ones are not compromised for lack of funds. In this article, we will help you understand why getting a term plan timely is the best way you can secure your family.

Managing expenses post a regular stream of income ceases to exist can be tough.  As such, the insurance amount can help in maintaining a comfortable lifestyle and financing major life goals such as your child’s education and other major life milestones. With a term plan, your family will never have to compromise on any necessity or dreams.

When you invest in a term plan, you are creating a sound financial corpus for your children, your parents, and your spouse. Hence, it is essential to plan a term insurance policy according to the needs of your family. If your aged mom has a heart condition that would require expensive angioplasty, you can also provide enough cover for her treatment. If you have a child who is an infant and a child who has just entered college, their educational and general requirements will be different, your term plan will help both of them realize their dream individually.

Depending upon your requirements and financial necessities, you can choose from a variety of term plans. There are plans that offer a fixed sum assured post the policy matures. Some plans also give you a regular stream of income, so that you can tide over difficult times with ease.

Key Factors to Consider:

• Mostly, financial experts suggest that your cover amount should be roughly 15 times more than your present annual income. So, let’s say your annual income is Rs 12 lakh. Going by a rule of thumb of life insurance coverage being 15 times of annual income, you need life insurance of Rs 1.8 crore. 
• The next thing you should do is estimate the needs of your family. If your eldest child wants to go for a postgraduate degree or you have any outstanding loans, you must account for that. Suppose, the sum total of your financial obligations is Rs 50 lakh. You would need total life insurance coverage of Rs 2.3 crore (sum of Rs 1.8 crore and Rs 50 lakh).
• Most importantly, factor in inflation. The value of your investments could be reduced to a mole after a decade, owing to rising inflationary trends.  For an affordable premium as low as Rs. 17 a day, you and your family can get the advantage of a large life insurance cover. The only requisite is to start early.
• Apart from ensuring your family in your absence, term insurance plans also make sure that you, as a breadwinner, are protected from critical ailments and diseases. Like the case with Aviva’s Term Plan, which gives you the option of adding a Critical Illness Rider with a cover against 16 such illnesses, as well as a permanent and total disability! And at a very minimal top-up. These options will provide you the additional benefits to counter health issues, without having to dip into your main fund.

Amongst all life insurance plans, term plans provide the highest coverage and charge the lowest premiums during the tenure of the policy. So, go ahead, give your family the gift of a secure future. Get a term plan today!

Mar 12/19

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