Life can be uncertain. You can never know when something untoward may happen, leaving your dependent family members vulnerable to financial difficulties, especially if you are the sole earning member. To mitigate such problems, it is best advised to purchase a life insurance policy for your family as soon as you get your first salary.
Term insurance is one of the most popular life insurance products in the market that offers a host of benefits. With a comprehensive term insurance cover at your disposal, you can breathe a sigh of relief knowing that your family’s future is secured financially.
To understand how term insurance benefits your family, you must understand the basics.
What is term insurance?
Term insurance is a pure protection policy. It gives you coverage for a specific period, and in the event of your demise during this period, the insurance company will pay the death benefits to your family.
Since term insurance does not have any investment option and does not offer survival benefits, the premium for such plans is affordable.
How can term insurance benefit your family?
Buying a term family insurance policy can be beneficial in many ways, which are discussed below:
Act an income replacement for your family
Compared to other life insurance policies available in the market, term plans offer higher coverage. You can purchase a plan with a sum assured of ₹1 crore or more to suit your specific needs. This means, if the family loses income due to your demise, the death benefit they receive from term insurance can serve as an income replacement and help them meet their everyday expenses.
It helps your family maintain their usual lifestyle
Even if you are the only earning member in the family, everyone, as a unit, may be accustomed to living a certain kind of lifestyle. Your family’s needs and goals may be aligned with the level of income you have. However, in the event of your untimely demise, the death benefits your family may receive from the term insurance policy would allow them to maintain the kind of lifestyle they are used to living.
It helps you fulfil your children’s dreams
Your children may be entirely dependent on your income for their everyday needs. However, in the event of your sudden demise, your children may face financial hassles, and they would be left with no income to support their dreams and future goals. This is where term insurance can prove to be extremely useful. The benefits your family may receive from the term plan can ensure that your children’s goals are not derailed even when you are not there to look after them.
It helps your family meet significant expenses during an emergency
You and your family have many long-term goals like buying your own house, sending your child overseas for education, etc. At the same time, you may also have specific debts that must be repaid over the years.
In the event of your untimely demise, the income loss could make it difficult for the family members to meet such significant expenses. However, you can help your family meet these costs with a term insurance cover even after you are gone.
Now that you are aware of the benefits of family term insurance make sure that you do your due diligence and purchase a term plan now to secure your family’s tomorrow.