You do your best to ensure that your family can lead a comfortable life. You try to provide the best education to your children. However, life is uncertain, and you can never predict when an unfortunate event can result in your untimely absence.
The best way to protect your family from monetary difficulties is by availing of a term insurance plan. It is a pure life cover that pays the benefits to your nominees in case something untoward happens to you during the policy duration. However, you may tend to delay buying a term insurance plan due to many factors.
Here are five reasons why you should not put off buying a term insurance policy for your family:
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Your spouse may be able to take care of the family. However, is she capable of managing the home, children, and a career? Moreover, if you are the sole earning member, your spouse will have to find a job, which may be difficult. Your relatives may try helping, but they may not be financially capable to ensure that your family members can sustain their lifestyle in your absence. Do you want to leave your loved ones in financial distress? If you wish to avert such a circumstance, it will be wise to invest in a term plan immediately.
Higher Expenses Resulting Due to Inflation
All costs are constantly increasing because of inflation. Additionally, bringing up children is costly, and you will need to plan for their schooling, higher education, and ancillary expenses if they study abroad. You will also need funds to sponsor their wedding. You may have a regular investment plan to take care of these life goals. However, who will continue this in your absence?
You may have invested in a traditional life insurance policy like an endowment plan. However, this policy is expensive, and therefore, you may be unable to avail of a higher sum assured (SA). In comparison, a term insurance policy allows you to get a higher SA at an affordable premium.
Inadequate Cover Under the Employer’s Term Plan
Some companies provide group term insurance to employees as an additional benefit. However, most group plans have several limitations and are not sufficient to meet your family’s requirements. Additionally, you lose the coverage when you resign. If you start your own business or take a break, do you want to take the risk of no coverage? If not, then get an online term policy today.
Outstanding Loan Installments
If you have a home loan or a car loan, the burden of repaying the unpaid debts in your sudden absence falls on your family. If they are unable to repay the money, they may lose their home. Would you want your dear ones to become homeless when you are not there to look after them? If you do not want such a situation, buy a term plan as soon as possible. If you have limited money, you can opt for a smaller SA. Additionally, if you buy the term plan when you are young, you can benefit from a lower premium, as the risk for the insurer is lesser.
As per Section 80C of the Income Tax Act, 1961, the premium of up to INR 1.5 lakh is eligible for a yearly tax deduction. This term insurance tax benefit helps reduce your liability while providing economic security to your family. Additionally, the policy benefits paid to your nominees are tax-free as per Section 10(10D) of the Act. This benefit enables your family to use the entire policy cover without any deductions.
Generally, you do not consider the possibility of an untoward incident that may result in your absence during an early phase of life. However, an accident or a critical ailment can come unannounced. So, do not leave your family unprotected and buy term insurance today.