Term Insurance plans are the most seamless and affordable life insurance plans in India. These plans offer extensive sum assured and serve as income replacement in the event of the policyholder’s death. The sum assured received enables the family to live a financially secured life.
Considering their benefits, which are the 5 stages of life when you should buy a term insurance plan?
1. When you start earning: The younger you are, the lower are the term insurance premiums. So, to make the most of the low premiums, buy a term insurance plan the moment you get your first job. You can buy a basic cover, as you might not have a lot of liabilities, and bump up the sum assured once the liabilities grow.
2. When you have dependent parents/siblings: If you are the sole breadwinner of the family and have your parents and sibling’s dependent on your salary, it is wise to buy a term insurance plan. The term plan payout will help your family take care of their financial needs in case of any eventualities.
3. When you get married: After marriage, you are responsible for taking care of and providing for your spouse. Even if they have their own independent income source, the loss of a life partner can be taxing – emotionally and financially. Therefore, to secure the future of your better half, it is advisable to get a term life cover. Some providers like Edelweiss Tokio Life Insurance offer the Better Half benefit where you can cover your spouse in the same term plan.
4. When you have children: Having kids is a huge responsibility. You must take care of their needs and provide for them till they are independent and earning. Any eventualities in the future can disrupt their lives. So, to ensure your children are well-taken care of in your absence, you should get term life insurance.
5. When you buy a house: Term plans are great for insuring your liabilities, like a home loan or car loan, so that the burden of repayment doesn’t befall your dependents. When you take a major loan, you can either buy a separate policy to cover the additional liabilities or increase the cover of your existing term plan.