Term insurance is a financial backup covering premature death. The reason why a term plan is one of the essential inclusions in your financial portfolio is that aside from ensuring monetary freedom for your family, it also promises to fulfil other financial aspirations. Aside from a Life Cover, an online term plan also makes you eligible for several advantages.
Usually, people buy term life insurance cover until the age of 60. Here are the reasons why paying for term insurance till the age of 60 is a wise financial decision.
Advantages of paying for term insurance till 60 years of age
1. Premium Payment During Salaried Years
Making term insurance premium payments is easier when you have a fixed income in the working years of your life. While the age of retirement is being pushed and individuals are extending their work-life, generally, 60 is when most working professionals choose to retire.
Post-retirement, the monthly spending budget is revised, and you tend to cut down on extra expenses. However, when you are earning, you can easily set a certain amount aside for paying the term insurance premium.
When the premium payments are completed at the right age, they don’t burden your pocket.
2. Worry-Free Retirement
The second innings of your life should be free from financial liabilities or all elements that bring you down. You make investments in the initial phase of your career to reap its fruit during retirement years, when you don’t have an income source supplemented by a work-life.
However, if your term insurance continues beyond the age of 60, this mandatory premium payment might affect your retirement funds rather than be a beneficial investment. Experts recommend early investments in plans that will provide you with passive income to support your lifestyle during retirement.
3. No Dependents
One of the most important reasons to buy term life insurance is to secure the life of your dependents if something unfortunate were to happen to you as the sole breadwinner of the family. In the initial stages of your career, these financial dependents might include your children, spouse, or aged parents.
However, this equation changes after the age of 60, especially concerning your children. Generally, when you are 60, your young children are old enough to earn for themselves, and you need not have a term insurance plan to secure their futures.
Moreover, because you have retired, the term insurance premium will most probably have to be paid by your children on your behalf. This is why extending your term plan beyond the age of 60 is not a wise financial decision in the long run.
Important Considerations Before Buying Term Insurance
Every individual has different financial requirements, which consequently also changes their term insurance needs. Amongst others, flexibility is one of the greatest term insurance benefits, enabling insurance seekers to choose a plan that addresses their concerns.
As a term plan secures the financial well-being of your family, it is important to do adequate research before investing in a policy. When you buy an online term plan, you can compare different policies to find the one that suits your needs. Here are the things you must ensure before buying an online term plan:
· Reliable Insurance Provider
Choosing the right insurer is just as important as choosing the right insurance cover. You must undertake an analysis to check whether the insurance provider has the financial health to validate your claims. You must also check the claim settlement ratio of the insurance provider to check their credibility.
· Determine Your Coverage Requirements
Every insurance seeker must take a look at their lifestyle to determine how much financial cover do they need. In addition to this, it is also important to observe your liabilities, such as any loans you may have taken, and add that to the coverage amount. Finally, also consider inflation in your coverage amount to ensure wholesome financial protection of your loved ones.
· Suitable Riders to Enhance Your Plan Benefits
Amongst the best term plan benefits is that it enables you to enhance your cover with a choice of add-ons to your basic policy. If the policyholder dies due to any of the conditions specified in the rider policy, the nominee receives an additional amount over and above the death benefit.
With increasing health risks and soaring hospital bills, a critical illness rider is recommended to every policyholder. For individuals who travel a lot, an accidental death benefit rider can be highly beneficial.
· Buy Online Term Insurance
Term insurance benefits are better when insurance is purchased online. Not only does it enable easier comparison of the policies available online, but it helps you save more on the policy. The term plan premium is cheaper when you purchase it online instead of in person, which makes your policy cost-effective. The digital payment options further ease online insurance purchases.
The Edelweiss Tokio term plan comes with a host of attractive features that ensure comprehensive financial protection. After selecting the suitable term insurance cover, the policyholder can either choose to pay the premiums to the age of 60 or until the conclusion of the policy term based on their preference. And, what’s more? You get the trusted and reliable after-sale service and seamless claim settlement of Edelweiss Tokio Life Insurance.
A term plan is an important investment for the financial health of your loved ones. However, to avail yourself of the various term plan benefits, ensure that you choose the right cover and the right duration of your term insurance policy.
For more information regarding Edelweiss Tokio Life Insurance plans, get in touch with us today!
Neha Panchal - Financial Content Writer
Neha used to be an Engineer by Profession and Writer by passion, which is until she started pursuing full-time writing. She's presently working as a Financial Content Writer, with a keen interest in all things related to the Insurance Sector.