The last tax season you bought a ULIP. It made you very happy. The season before the last you bought an endowment plan. Even that made you happy. This year you are thinking about buying a children’s education plan for your child’s higher education. Thrilled to bits, isn’t it? So you should be. You have made plans for a prosperous future for you and your family. But, wait a minute! Have you secured your family’s future? Perhaps, not yet.
Yes, you heard it right. You have taken a ULIP for wealth enhancement, an endowment plan for assured returns and a child education plan for making provisions for your child’s future education. But what if you were to meet with an untimely demise? Will your life insurance policies be enough to provide for your family when life takes away your support? Perhaps no. All the above plans are targeted towards giving you returns on your investment and are more of investment than life insurance. Of course, your beneficiary will get a Sum Assured in the event of your unfortunate demise. But the amount may not be sufficient to pay off your liabilities and keep the kitchen fire burning. If, let’s say you have a home loan going, in the vent of your passing away, the loan will have to be repaid in full and cannot be transferred in the name of your spouse. In this scenario, your spouse may need a lump sum to pay off the loan.
A term plan
You need a pure life insurance policy which provides a payout enough to pay off your liabilities and allow your family to live with their head above water. You need a term life insurance policy. A term plan is insurance in the purest sense, where, in the event of your death, your family receives the full payout in lump sum. In some policies like Edelweiss Tokio Life MyLife+, there is the additional option of receiving the payout either as monthly payouts or as a combination of lump sum and monthly payouts.
Why term plans?
Term plans, especially the online ones give you a much larger and longer cover compared to traditional and other policies at a much cheaper rate. This ensures that your family’s future is secured by a much higher amount and for a much longer period. Since, the life insurer does not have to pay anything on maturity, the probability of making a payout is that much lesser because of which term plans are cheaper. Online term plans are a better buy because of the convenience which they provide. In a series of clicks, you can insure yourself and secure your family.
Generate a quote for a term plan today and ensure that you are giving adequate protection to your family.