A monthly investment of Rs 1 lakh in bank fixed deposits, a pension and mutual funds were the part of Jivesh Sharma’s grand financial plan. But the 32-year-old mechanical engineer did not find out one big gaping hole in his financial planning— lack of term insurance plan. Like many others, Jivesh thought that if he saved enough, his financial investments would fetch him a good amount in the future. However, Jivesh took his life for granted and committed a mistake that cost his family dear when he met with a fatal road accident six months later.
Without Jivesh’s salary and savings, his family had to go through a financial crisis. The situation would have been different if Jivesh had a term insurance plan.
If’s of life
Most of the people are worrisome by nature and constantly plagued by ‘if’s’ of life. “What happens to my family if I am not there?” Or, “What happens to my family if I develop a critical ailment?” Usually, such people spend their life worrying about these risks, but how many people buy term insurance to secure their loved ones?
If you look at it from a different perspective, you will find that you hedge your risks which you take every day in some or another form. A homemaker will purchase a variety of food items to ensure a healthy diet for the family. Every day, you take simple steps like taking your spouse to a doctor when ill instead of depending only on home remedies, reminding your partner to wear a seat belt or investing in a good toddler car seat for the safety of your child.
However, when every day you take such small precautions for your loved ones, why do you avoid taking a long-term protection step, that is the step to buy term insurance?
Term Insurance Plan Is the Best Way to Control Life’s Uncertainty
If you have a term insurance plan, your family will get death benefits in your absence. Then there are some insurance companies which also pays on the diagnosis of critical illnesses like cancer, heart attack, etc. Such plans ensure 360-degree coverage against life’s uncertainties.
Different Payout Options to Ensure the Regular Income
Sometimes, you make a lumpsum payment, like towards your child’s education and sometimes, you need monthly income to bear the cost of loan EMIs. With term insurance plan, you not only secure your family’s well-being, but you also give your nominee a choice to get insurance payout as per their needs.
Here are some of the common payout options which you can opt for your nominee:
- Lumpsum: The entire life cover is paid together as a fixed sum.
- Income: Your nominee will receive a regular monthly income in your absence.
- Increasing Income: It takes care of the rising inflation rate. Your nominee will receive a fixed sum in the first year, which will increase in the second year.
- Lumpsum plus income: Life cover will be paid in two instalments as chosen by you at the inception of the policy. For instance, if your life cover is Rs 50 lakh, your nominee will get Rs 25 lakh as a lump sum and remaining Rs 25 lakh as monthly instalment. Here, the monthly instalment will also increase over the years.
Life is a gamble without term insurance
When you see cloudy skies, you take an umbrella along with you when you step out. Similarly, when you see the commotion on the road, you take a different route. Much like an umbrella, a term insurance plan secures your family in your absence. In the present situation, human life is at constant risk due to health hazards, accidents, lifestyle changes, etc. Loans, household expenses, etc.; are all under severe threat once the main income is gone.
So, it Is advised to go with a term insurance plan and give financial security to your family against a number of risks.
A term insurance plan gives peace of mind to help you live in the present and secure your loved ones tomorrow. So, take the plunge now!