Millennials in their 20s or 30s’ are highly unlikely to think about life insurance. It’s only once you reach milestones like marriage, kids, loans, and Googling “affordable term life insurance plans”, etc. you begin to realize that you’re an adult. When you are going through the researching and buying process, there is always the question that hangs around in the back of your mind – is term life insurance worth it?
If you’re at a stage in life where your family, spouse, or children financially rely on you, then the answer is clear as a bell – it’s certainly worth it, and it’s a smart idea. A term life insurance policy’s payout acts as a financial safety net for your near and dear ones to care of their future expenses such as childcare, day-to-day expenses, and all the strings that come with adulthood.
Here are many reasons why term insurance plans are at an affordable cost, some of which are explained below:
1. Term Life Insurance is Less Expensive
A great choice for those on a budget as it is a temporary policy that pays only death benefits to the beneficiaries of the policy in the unfortunate event the insured person passes away during the term of the policy. It is less risky than other types of insurance like whole life insurance and hence the least expensive option in the life insurance product lineup. Unlike other products, term insurance has no cash value.
The premiums that you pay are purely for death benefits which helps cut down the cost. Term life takes care of the basics and is a no-frills option that provides financial assistance to your dependents in case of your unexpected death. It’s viewed by most people as an immediate and affordable option.
Term life is a no-fuss product which is what attracts buyers. Simply put, easy-to-understand. Although this does not sound like a big deal, once you dive into term life, you will see how straightforward it is as compared to permanent life insurance. It is a blessing for those looking for something as simple as ABC. The ease coupled with term life insurance rates makes this an appealing product for everyone alike.
2. Easy to Buy
With term insurance policies, you can customize your policy as per your requirements. With the advancement in technology, you can browse through the many options available online and pick the term insurance plan that you want. Unlike other life insurance policies, term insurance policy’s basic framework makes it easy to purchase.
Since it’s easy to understand, you can easily shop around and compare prices. You only have to keep an eye out for a few specifics like the company, the duration, the coverage amount, the sum assured you want to attain, your financial goals, your standard of living, your debts, etc. Paying your premiums ensures you’re covered for the tenure of the policy.
3. Protection Against Liabilities
There comes a time when you indulge in acquiring assets for yourself – you buy a house, you buy a car, etc. Over and above this, other liabilities loom over you such as credit, debts, etc. Typically, these liabilities are large amounts that take several years to repay. In case you face a misfortune like an accident, disability, or demise, the term insurance plan comes to the rescue. It ensures that your family isn’t financially burdened with huge responsibilities.
4. Flexibility
Your options are endless when it comes to term life insurance. Your coverage can last for 5 years if you have several costs like a mortgage like your child’s tuition expenses or even as little as one year which is renewable annually. There are also 10, 15, 30 and 30-year durations. If you are looking to cover your child’s tuition and your mortgage, then a 30-year policy is possibly a good match. As your needs vary with time, so might your requirements from your policy.
5. Good for Young Families
Many young families are shouldering several costs like a mortgage, caring for small children, perhaps saving for college, auto loan, retirement, and other expenses. The bottom line, they are financially stressed. Since it’s less expensive and better value for young families, term insurance will give you the peace of mind you need without burning a hole through your pocket.
6. Higher Sum Assured
Term insurance plan lets you have the cake and eat it too! You can opt for a higher sum assured if you can pay higher premiums. The cover amount can vary from $15,000 to $200,000, it all depends on you.
7. Extend Your Coverage
A term life insurance policy doesn’t necessarily expire when your term ends. The policy expires when the insured person reaches the age of 95. Until then, the current policy can be continued, most often, without providing insurability or taking an exam, however, every year the rate increases significantly and as a result, it turns out to be more expensive.
Some individuals elect this option as they require coverage for 2-3 years after which the dependents can collect the death benefits; although, this is not a sought-after option. If you are healthy, you can look at other options like getting a new term, etc.
8. Completes Your Financial Plan
Saving for retirement is common – people buy assets that can be sold at a profit, sock some money away in an interest-bearing savings account, or invest in a 401(k) plan.
If you want to protect yourself and your family financially during your old age, the best way is to start saving from yesterday! Term life insurance should play a pivotal role in this plan.
Much of your sought-after efforts will bear fruit only when you’re much older. If you do pass away before that, those who financially rely on you will have no use of your retirement accounts. Term insurance is your financial bridge to your retirement.
Say you do outlive your family, cash in your savings, and have a great time during retirement. If not, your loved ones will be taken care of!
You really should try to buy the term plan from the best term insurance plans in India. Not only is it affordable but simple to set up and easy to use plus it will make a world of difference to your loved ones if something does happen to you.
