A sudden demise of any family member is traumatic. The entire family goes through an emotional loss which cannot be compensated. If an unfortunate event occurs to the breadwinner of the family or an earning member of the family, then apart from an emotional loss there would also be financial distress. The responsibilities towards your family members form an important part of your life and it is important to ensure that their lives continue smoothly without any compromises.
A term plan is a product offered by Life Insurance companies where the nominee selected by you (generally your spouse or parent) receives a sum assured in case of your demise. A term plan is a pure protection plan that will ensure your family’s financial well-being in your absence. This amount can be used by your spouse to pay utility bills, household expenses, your child’s education, parents medical expenses, etc. Also if you have a personal loan or a home loan the lump sum amount provided can be used by your spouse to pay the outstanding EMIs. There are plans which provide multiple payout options like monthly, lumpsum or a combination. You can opt for a payout option as per your family’s needs. The lumpsum amount can be used by your spouse for an immediate need like repayment of loans, the monthly can be used by your spouse/dependents to manage their daily expenses.
A term insurance plan will ensure that your family’s financial needs are met without any havoc. A term plan ensures that your family is protected and hence a term plan is a commitment you make to your family. A commitment to secure their future!
It is recommended that you calculate your family’s needs and then choose an adequate amount of sum assured, for enhanced protection you can opt for a life cover up to the age of 80.