As far as we can, humans take all the necessary precautions. But occasionally, events can be beyond our control and out of our hands. We do not want our family and loved ones to suffer, followed by the consequences after we pass away. In that situation, term insurance plans can be a good solution.
People can frequently be discouraged from buying a term plan at the right moment and think about it later due to misconceptions like ‘healthy people do not need life insurance, or ‘only financially stable people can obtain one’. Therefore, it is advised to consult a reliable financial counsellor or a trusted life agent to understand a life insurance policy’s objective properly.
Let’s better learn more about term insurance and the consequences one could suffer in its absence.
First, let’s understand what term insurance is.
Term life insurance plans offer financial protection against the hazards in your life. These can be affordable high-life insurance policies. In essence, the beneficiary may get the death benefit in a lump sum or instalments when the policyholder passes away.
What advantages do term insurance policies offer?
- Tax reduction:
A term life insurance policy benefits you while you may be alive and your loved ones when you may no longer be around. The beneficiary receives a tax-free payment. Some tax benefits may only be applicable to those who have only opted for the old tax regime.
- Debt burden:
Although seeing your family happy is perhaps the greatest joy in the world, wouldn’t it make you feel even more stress-free to watch your family living calmly and debt-free even when you may no longer be there? There won’t be any debt collectors, and other daily costs like water supply, home upkeep, and energy bills can all be handled even if you’re not home with the help of a term insurance plan.
- Loved ones are cared for:
If a family’s breadwinner passes away, life gets challenging. With a sudden loss of income, it’s unclear if the family might be able to keep living at the same level or handle their debts and other responsibilities. With term insurance, things can still go smoothly even without you.
Consequences of not having term insurance –
- Daily costs:
Imagine a world without our essential needs (food, clothing, and shelter). When your loved ones need it the most, term insurance can save the day. Utilise the term insurance premium calculator online and find a suitable premium to safeguard your family’s future.
- Loss of the family’s primary earner:
It can be challenging to manage daily life in your absence if the family depends entirely on you. Addressing financial difficulties can be a significant task if you have siblings or are responsible for someone’s education, parents’ old age, etc.
- Debt from a mortgage:
It can be challenging for your family to pay off debt obligations when you are no longer there if you don’t have term insurance.
- Family members’ emotional vulnerability:
In addition to dealing with their emotional demise, they might unwittingly suffer from the ongoing financial crisis. The money from a term insurance plan can help your family deal with this kind of circumstances.
Because of these reasons, everyone who works must purchase term insurance plans, especially if they are the only source of income for their family. You may benefit more from buying early if you do so.
It is advisable to have a good idea of what term insurance is and purchase a suitable life insurance plan to avoid the consequences mentioned above. Life insurance is often called the most important financial decision you can make. If you choose wisely, it won’t leave you in despair.
The insurance market offers a variety of insurance plans to suit various demands. Choose the plan that best meets your tastes after comparing the options on the market.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.