Ever wondered why do you buy a term insurance plan? Is it to oblige your next door neighbour who is an insurance agent? Is it for tax-saving or is it for the purposes of pure investment? If your answer to the above questions is yes, you are probably doing the right thing for the wrong reasons. The primary aim of a term insurance plan is to secure the future of your family. You should be buying a term insurance plan so that your family can withstand the financial burden of life after you’re no longer with them.
Why term plan then?
A term plan gives you pure protection. As the name suggests, there is a term attached to the policy, during which, if you were to meet with an untimely demise, your beneficiary would receive the complete Sum Assured. With this money, they can meet the expenses of life like home loans, your children’s fees, medical expenses etc. It is the cheapest plan in the market that can give your family maximum security.
When to buy it?
The younger you are when you buy it, the lower are your premiums. As you get older, the probability of risk to your life due to lifestyle diseases like diabetes etc increases, pushing your life insurance premium higher. Buy a term plan when you are young. Even if you do not have a family, buy it now and then change the beneficiaries later. This way, you can lock-in a cheaper rate for security of your family. Ergo the earlier, the better.
A term plan for Rs.1 crore will come at an annual premium of Rs.5693/- p.a.* This plan would cover you till the age of 55 years. The same policy would cost Rs. 14,788/- if you buy it at age 45*. So, it makes more sense to buy a policy when you are younger
For how long should you be covered?
The longer the better. Edelweiss Tokio Life MyLife gives you the option to be covered till the age of 80. Secure yourself so that your family can be prepared for any eventuality during any phase of their lives.
Generate a quote today to find out the best mix of policy term, premium and Sum Assured according to your needs. Buy it when you are young with the aim of keeping it till the end of term.
* The example is for illustration only. Log on to the website www.edelweisstokio.in for the accurate quote.