Term plan - A shield that protects your family

Term plan is the most secure method to ensure financial safety when you are never again around to accommodate your family. In a term plan, a fixed sum is given to the nominee of the policyholder in case of their demise. You are protected for a specific time span which is known as the policy term and no money related advantages are given on the off chance that you survive the policy.

Income replacement:

A term insurance plan is chosen with the goal that your wards have enough financial assistance if there should arise an occurrence of your demise. The prime reason for a term insurance plan is income replacement. So, you higher the income, the larger the life – cover should be. It is recommended that you choose a sum assured which is at least 10 times higher than your annual income considering the increase in responsibilities as you progress in your life-stage. For a man who has a yearly salary of Rs10 lacs for each year is qualified to find some kind of purpose for existing spread up to Rs. 1 crore. When you are settled throughout everyday life, have a decent salary, and intending to begin a family, it is the right time to take a term plan to guarantee that your family doesn’t face any money related issues.

Learn more about choosing the correct Sum Assured here.

Term plan is a pure protection plan which just provides death benefit. Since there is growth or investment involved. The premium for a term plan is fairly low for higher sum assured too.

Paying off outstanding debts:

When you bite the dust, you may leave behind outstanding debts for your family. These can include automobile loans, home loan, credit card bills and different EMIs. Maybe your family can afford to clear of some of these small ticket items. But what about the big ticket items like home loan? This is when a term plan acts as the hero. It helps in reimbursement of such obligations and future instalments that you may leave behind.

Significant Responsibilities:

In the event of unplanned passing, you will not have the capacity to satisfy obligations. With a term plan, your child wouldn’t be denied a good education due to lack of income. When we begin a family we, promise to ourselves that we will always put them first and protect them. We keep this promise for a lifetime. Furthermore, in your absence, your term insurance plan can help in keeping the promise alive.

So now we can say that a term plan is the shield of protection that everyone ought to have. Let Edelweiss Tokio Life Zindagi Plus be your shield!

Chirag Iyer - BFSI Enthusiast

Chirag is a writer and an avid reader who loves to drink coffee! His other interests include boxing, karate, and singing.