In today’s fast-paced world where nothing is certain, definite steps have to be taken to ensure that the future is stable for you and your family. One of the crucial steps which have to be taken towards ensuring a stable future is buying a term plan. A term plan helps you secure your family’s future in your absence. Following are 6 types of people who are advised to purchase a term plan today:
Sole Breadwinner of the Family
When you are the main breadwinner of your family, you are conditioned to think beyond yourself. When you’re gone, your family will be struggling with their finances and trying to substitute your income; in addition to dealing with your loss. A term plan provides them with enough money to keep going on with their lives while they grieve. It will help them pay the bills, the school fees, or even start up a small business.
If you’re a divorced parent, your child’s needs are dependent on your financial assistance. You must buy a term plan and secure your child’s future. In the unfortunate situation of your absence, your child will still be able to get a quality education, a comfortable life, and a happy future.
With rising cost of living, it is imperative that both partners work to support the household. Without income from more than one source, it becomes extremely difficult to keep up with expenses. Term insurance protects your partner and child financially from your accidental death, ensuring that they keep their head above water in your absence.
Outstanding home loan
With sky-rocketing real estate prices in the urban areas, buying a house outright is very difficult and most families usually end up taking a home loan. The sense of satisfaction of owning your own house is incomparable and even if it involves stretching your finances, most families usually go for it. If you’re not there to do it, the life cover provided by the term plan will take care of the outstanding loan; thus, ensuring that the house is not forfeited from your family.
A business is an extension of your identity and your legacy. The life cover provided by the term plan can be used to take care of your business in your absence. This would put fewer burdens on your family as they are coming to terms with your loss. It will stop your business from going under and also ensure that the livelihood of your employees is protected.
Any long-term borrowings such as such as vehicle, student, personal loans, or any other debt can be settled with the life cover that your family receives in your absence. This will reduce the financial stress on your family and relieve them of additional burden.