How Term Life Insurance Can Help to Meet Your Financial Goals?
Financial planning is necessary to ascertain the availing of funds or meet unplanned eventualities. We all really work very hard to protect the future for ourselves and our family members. Life is a long journey that consists of several financial objectives and unfortunate eventualities.
In order to provide you a financial cover against such uncertain exigencies and to fulfill the various financial goals in life, a term life insurance is an ideal option.
You must be wondering why we are considering term plans instead of other life insurance plans such as money saving or investment plans? Well, yes we agree that term insurance is not an investment option for you. However, there are some financial goals which you and your family have aimed for together? So, what if in case something would happen to you? Would you want to leave all the financial liabilities on the shoulder of your loved ones? Of course, not! No one will ever want this. This is where opting for a term insurance policy makes complete sense.
What is Term Life Insurance Plan?
A term insurance plan is a protection plan that also works as a financial back plan for your loved ones. You as a policyholder pay a fixed premium amount to the insurance company and in return, your beneficiary receives a life cover in an unfortunate event of your demise as a death benefit. Therefore, it ensures financial security and stability to your dependents in an event of your untimely demise.
It is availed for a certain period or a fixed term and the most significant benefit of this type of insurance policy is that it is less expensive as compared to other life insurance policies. Thus, everyone can easily opt for it to secure the future of loved ones financially in their absence.
Why Term Life Insurance is recommended For Meeting Your Financial Goals?
Term insurance policy is not just limited to offering protection to your loved ones only but also it works as an important tool for financial planning and meeting one’s life various goals. These goals could be anything. It may be related to the wedding, the child’s higher education, buying a home or car, etc.
Moreover, the term plan is a useful tool that can be availed to protect one’s financial goals. In the event of unfortunate contingencies, the sum assured is paid to the beneficiary by the insurance company in the form of a death benefit. Therefore, it ensures that all of your financial goals such as outstanding debts, a child’s education, etc, get fulfilled even when you are not around.
When Should You Opt for A Term Life Insurance?
It is advisable that you should opt for a term insurance policy as soon as possible. However, the term plan is suitable especially for the following life stages:
If You Are Planning to Get Married
A term insurance plan should be your priority when you are planning to get married. The earlier you buy the term plan, the lesser premium you pay for the same cover.
A term life insurance plan would safeguard your spouse’s financial requirement in the event of your unfortunate demise. It ensures financial security and stability by offering the sum assured which your spouse can use to cope up with the financial liabilities in a stress-free manner.
The minimum age to purchase a term is 18 years and the maximum age could up to 65-70 years. However, it may vary from insurer to insurer. The ideal time to purchase this policy is when you’re in the prime of your career and heath because with the increasing age the risk factors may result in increased premium costs. The premium cost basically depends on the applicant’s age, policy term, and the sum assured.
If You Are Planning To Have a Child
The main purpose of buying term life insurance is to safeguard your family’s future financially especially if you a sole breadwinner in your family and have dependents. Plus, if you have several financial liabilities such as car loan, home loan, mortgage, or any other kind of outstanding debts, then opting for a term plan is ideal because it does not let the burden fall on your family in case of your untimely demise.
The Bottom Line
Term life insurance ensures that all of your family’s financial requirements can still be met even when you are not around. It guarantees that the outstanding balance is paid off and the surviving members can still maintain a certain stand of living. This is how a term plan helps you meet your financial goals even in your absence. You can also buy this cost-effective insurance policy to secure the future of your loved ones and also for ensuring peace of mind.