FAMILY FIRST! Term Insurance IMPORTANT for financial security for your family members

COVID-19 is having a significant impact on the lives of many people. Many families have lost their near and dear ones. In these times, the earning member of the family must align their life insurance to make it transparent to the family, in case something was to happen to them. If you don’t have a term plan in this portfolio, and you are the sole earning member in the family, then buying a term plan can be your next priority. 

Sameer Joshi, Chief Agency Officer, Bajaj Allianz Life said that in these tough times, it is essential to ensure you are taking all the precautions necessary that will help you march ahead. Amongst ensuring that COVID-19 appropriate protocols are followed, it is also essential to take a look at your financial portfolio, and most essentially the life insurance policies you have. Not only yours, but ensure you have a ready reckoner of all life insurance policies in the family, including your parents and in-laws. And if you are the sole bread-winner of the family, make this action a priority.

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Here are the key reasons why Term Plan is important:

Term plans help provide for the family’s life goals in case of an unforeseen eventuality that may lead to the death of the breadwinner(s). Term plans help create a solid back-up for the family, financially, at a cost of a nominal premium that the earning member has to pay, and ensures the financial safety of their family. So it does not matter who you are and what you earn, if you have dependents and liabilities, you may consider having term insurance.

Also, Irrespective of when you buy your term insurance, you may be eligible for a substantial life cover for a nominal premium amount that you may be required to pay. It’s preferable to buy a term plan when you are young, as you can pay as little as what you pay for your single outing in a decent restaurant and get a substantial cover. You will pay that same premium till the policy term ends. This is because you have age and health on your side. There are policies available at online platforms that come with a premium cost as low as Rs 21 a day for Rs 1 crore cover for say, a 25 year old individual. However, as mentioned, irrespective of when you buy it, the benefits of term insurance are tremendous.
 
Term insurance these days come packed with customisable risk covers and flexible premium payment options, to suit different customers and their unique life goals. Some term plans combine the risk cover with critical illnesses cover that include several lifestyle conditions that one could face. There are policies with child education cover option, cover for spouse and one where the premiums are returned at the end of the policy tenure, if the policyholder survives. Further, you can choose to pay the premium annually, half yearly, quarterly or monthly, depending on what suits you best. Some insurers also offer a limited premium payment option where you pay the premiums for a shorter time but enjoy the benefits for a longer time.
 
In case something were to happen to the breadwinner(s) leading to their death, life insurance companies pay their nominees a lump sum that will enable the family members to continue pursuing their life goals. Most often than not, when one doesn’t have adequate life insurance, life goals of family members are derailed due to the lack of financial security. Hence, keeping the future conveniences and needs of dependents, one must have a term plan with adequate life cover.