4 Reasons Term Insurance is a Fundamental Part of Having a Sound Financial Plan by Sanya Uppal, Insurance, Finance Article

Finance


4 Reasons Term Insurance is a Fundamental Part of Having a Sound Financial Plan

	By : Sanya Uppal , Delhi, India 13.6.2019 Phone:- Mail Now

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	If asked what comes to your mind when thinking of a sound financial plan, the likely answers of many would include “structuring a portfolio with an eye toward generating higher returns,” “accumulating a substantial retirement corpus,” or “planning for college education of kids.” Of course, saving to accomplish life goals or getting ready for the golden years, will, in general, be the essential crux of any sound financial plan. However, equally significant is the importance of incorporating term insurance strategies to address specific needs such as providing for the surviving members or ensuring that the higher education of children is not jeopardized, if and when one is no more. The truth of the matter is, a term plan is essentially a key piece of a sound financial plan. And as you get hitched, start a family, purchase a home, and plan for retirement, the more significant term coverage becomes. Therefore, we have given below a few reasons explaining why a term plan should be part of your financial planning. To Protect Your Dear Ones A term insurance plan acts as a financial backup plan for your dear ones. By paying a fixed amount of premium, you get coverage in the form of a death benefit against your life. Thus, in case of your untimely demise, your beneficiaries will be financially compensated with the sum assured plus additional benefits (if any) as per your plan. A term plan thus financially safeguards your family in case of any contingencies and helps them manage the risks involved in losing the breadwinner of the family. Most importantly, it acts as a financial cushion and helps in retaining your spouse’s financial stability, protecting your aging parents, and maintaining your family’s standard of living in your absence. Paying off Debts For most people, house mortgage is one of their greatest expenses. For this reason, most couples bear this long-term commitment together. However, in case of your unfortunate demise, can your spouse bear such a huge cost without your income? A term plan can provide your spouse with a lump sum amount of cash to pay off the outstanding loan, thus, disposing of this huge money related worry, as well as the likelihood of loan default. Thus, by putting resources into a term plan today, you can get the benefit of managing risk against loans and debts in your absence. To Bring Peace of Mind It is impossible to know when God’s call will happen. It could be today, tomorrow or a long time from now, however, it will happen in the end. The truth is that no amount of money can replace the person, but at least, having life coverage can give assurance for the uncertainties of everyday life. Beyond question, having a term insurance plan will bring you and your loved ones peace of mind. You can be certain that you will never again need to question whether your family will be financially secure when you are no more. This is because term coverage financially shields your beneficiaries from life’s uncertainties and encourages them to sail through the emotional turmoil in your absence. To Add More Financial Security The best part about term insurance is that it acts as a financial shield for your investments as well. This is because they are extremely affordable and subsequently, don’t influence your current financial plans. And in the event of your demise, the cover amount can help your family in continuing your investments. A decent term insurance plan further guarantees that the cost of funding the higher education of your children is additionally dealt with along with supporting your family's everyday costs. Choose the Right Cover for Your Family Purchasing the right term insurance plan at the right time is just as significant as the rest of your financial planning. According to experts, an ideal cover should be at least ten to fifteen times your current salary. Another vital aspect is to buy a term plan from an insurer who has the highest term insurance claim settlement ratio and faster claim processing. After all, you wouldn’t want your family to run from pillar to post at the time of claim. As of now, Max Life Insurance boasts of the highest claim settlement ratio of 98.26 percent and their InstaClaimTM initiative endeavors to settle death claims within 24 hours (for specific products and eligible policies), thus, making it extremely easy for the bereaved families.

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