Why income replacement?
You are the breadwinner of your loving family. Your spouse and kids dote on you. Not only because they love you, but they also look up to you and have expectations from you. They know and are secure in the thought that you are there to provide for them. What would happen to them if an unfortunate event happens to you? There would be emotional trauma, but equally important will be the fact that they will have to deal with the financial challenges because of you not being around to provide for them. Should you not be doing something to see to it that they have the financial support to lean on when you are not around to fend for them?
You and your family have built a lifestyle around your income. This includes living expenses, home loans, your children’s education expenses, and other incidental expenses. Even when you are not there to provide for them, they will have all these expenses to look into. What happens to their dreams and aspirations.
Term life insurance as income replacement
To ensure that in the event of you meeting with an untimely demise, your family still has your financial support, you need to buy life insurance. Term life insurance is the best bet among all the options available to you in life insurance. Term insurance is insurance in the purest sense. It is a simple and conventional kind of insurance wherein in the event of death of the Life Assured any time during the policy term, the beneficiary of the policy gets a fixed sum either as a lumpsum or a monthly payout or as a combination of the same. With this amount, your family can manage the tough times in your absence.
Reasons why term plans are the best income replacement plans:
- It is a pure protection plan which can ensure your family’s security at low premium rates.
- Because it is pure insurance and does not have any maturity benefit, you do not need to worry about the returns that the money invested in the plans is going to give you. This gives you the clarity that you need to remain invested in this policy only to secure your family members.
- It is generally purchased online and hence is very easy to procure.
- With payout options like fixed monthly, it becomes a suitable replacement for monthly income that you were earning and easy for your family members to manage their finances.
Insure and secure your family’s future.
Life is very unpredictable. You can never be sure as to what lies in store for you or your family. It’s always better to secure your family’s future now than let them face the vagaries of the unknown.