Importance of having term insurance plans at every life stage

Planning for your future is an ongoing process and different for everyone depending on their needs and requirements. Some plans are executed butter-smooth while some others aren’t. There are unforeseen situations that leave you perplexed of how to move ahead in life. These tricky situations can ruin your entire financial plans. But that should not stop you from making wise financial decisions.

One such investment tool is an insurance plan. While there are myriad options of insurance plans, a term policy is preferred by many.

Therefore, you may ask what a term insurance plan is.

A term policy insures the policyholder for a fixed tenure at a fixed premium. The nominees are paid death benefit on the demise of the insured during the tenure of a term policy. In case the insured survives the policy tenure, no maturity benefits are given. It is a tool to protect your family in case of an unfortunate death. After the specified tenure, you can renew your policy with revised terms. Your family’s dreams and ambitions should not be restricted due to finances. After all, it can be the only source of support in your absence.

Is a term plan suitable for each stage in your life?

While a term plan has one of the highest coverage to premium ratio, it can be utilized for stabilizing your family’s financial future. Here is how an online term plan can be useful at different stages of your life –

New Earners

Your first paycheque is the perfect occasion to start investing in an insurance plan. With the credit alert to your bank account, you decide what you can buy with your hard-earned money but saving some of it is equally important. What better than availing a term insurance plan? One of the cheapest ways to avail a life cover. Moreover, the earlier you start, the lower is the premium to it. It is because of the low health concerns associated at a younger age.

A term plan is exclusively designed for individuals who are looking for a high insurance cover at affordable costs. The premiums are competitive to the different sum insured that you can avail. These premiums differ across different insurance companies. Make sure you use a term insurance calculator to compare the various plans and select a suitable plan for yourself.

The Newly Weds

Who doesn’t want a grand wedding? After all, it only happens once in life, and it is something that you and your partner will cherish for the rest of your lives. However, there is no denying that it can be a financial burden. With marriage follows a host of responsibilities like buying a new house or a car. One can often find themselves resorting to financial institutions for these expensive investments. A large EMI needs to be backed with an excellent financial plan. Using a term policy, you can opt to secure your future. An unexpected demise can set back your spouse with the financial troubles of managing these hefty EMIs. A term plan will provide much needed financial coverage to your spouse in case of an unfortunate incident.

Becoming Parents at a Young Age

A term plan is an investment avenue that can be useful to secure your child’s future without compromising on their dreams financially. While investing in other financial verticals, make sure you avail a term plan to protect the interest of your young ones. These plans will help in your child’s future education, marriage and other important events. It will also provide coverage for their daily expenses, even when you are not around to take care of them. After all, your children deserve the best in life.

Irrespective of any life stage, make sure you avail a term plan to provide financial support for your loved ones in your absence. A term insurance calculator can help you in getting the best plans with maximum coverage amount. Be wise and invest in a reliable future.