Term Insurance - The Love for Your Family Continues!

If you have ever thought in your mind, "Who will look after my family if I die?", you are not alone. If you are the sole breadwinner of your family, it is natural for you to come across this fear, often.

Life is uncertain. We have no control over the twists and turns that life brings us. Sometimes it is good, sometimes it is bad. But you have always worked hard to keep your loved ones away from the hardships of life. Your hard-earned money has always helped you maintain the living standard of your family.

Now, what will happen if a sudden cloud of misfortune takes away from your family the support you have always provided them with? What if a fatal accident or a life-threatening disease disrupts the balance of life for your family? How will your loved one's cope with the financial and emotional instability that your sudden death might bring? If all these questions often keep coming to your mind, and make you more and more worried, it is time you should start planning out something serious that will help you safeguard your family financially, even if you are not around, in future.

As an old saying goes, "Worrying Does Not Take Away Tomorrow's Troubles; it takes Away Today's Peace." It is, therefore, no use constantly worrying about the future of your loved ones. Start financial planning for future when you still have time.

There are different ways to strengthen the future financial health of your family. You may invest your hard-earned money in capital markets (through ULIPs) for creating wealth, you may buy a child insurance plan for securing your child's future, you may purchase an endowment plan to save money for future. But, these are the cash value plans that require a huge amount of money to be invested to give the benefits you want.

According to an article published at Huffington Post, life insurance plans provide guaranteed financial security for future. But you should also ensure that the plans are not too expensive to afford.

Most cash value plans (that give both death and maturity benefits) are quite expensive compared to term insurance plans. A pure term insurance plan provides a huge sum assured amount on the death of the policyholder, but offers no benefit on maturity. Besides, term plans offer tax benefits under section 80C of the Income Tax Act.

Term plan is the most basic type of life insurance plan. Hence, it offers comprehensive life cover at a low premium cost.

The guaranteed life covers that term insurance plans offer are quite huge so that your unfortunate and untimely demise does not come down as a huge financial shock over your family.

The premiums of term insurance plans are also very affordable. For instance, if you opt for life cover amount of Rs. 1 Crore for 20 years, you will have to pay around Rs. 5,000/- every year provided it is a term plan. If it is an endowment plan, you will have to pay about Rs.50,00,000/- per year for the same amount of life cover and for the same policy term as well.

In an article published at Forbes, Tim Maurer, advisor, speaker and the author of "Simple Money" reveals that the popularity of term plans among insurance buyers seems unperishable through the ages. That is not only because it offers substantial life coverage at low premium rates, but also because of the simplicity of its structure, flexibility it provides, and the competitive pricing that allows buyers to choose from a vast array of options available to them.

The popularity of term insurance plans has encouraged the insurance providers to introduce various additional features with pure term plans. Based on the additional features, different types of term plans are available these days.

Term with Return of Premium (TROP)

This is the most popular type of term plan, though slightly costlier than standard term insurance plans. As the name suggests, the policyholders get back the total premium amount they paid in case they outlive the entire policy term.

Convertible Term Insurance Plans

There are a number of companies that offer convertible term insurance plans. These plans allow you to turn your pure term plan into an endowment plan at the end of the policy tenure. If you outlive the policy term and want to save your money for future, you can convert it to an endowment plan as the sum assured will remain the same, just the premium paying term will commence again.

Joint Life Term Insurance Plans

In a standard term plan, the policy terminates as soon as the death benefit is paid out on the event of the policyholder's death. But if you opt for a joint life term insurance plan, the policy will cover the life of your spouse as well, and the policy will continue even after your unfortunate death. So, buying a joint life term insurance plan is better and more affordable than buying two separate life insurance plans for you and your spouse.

Group Term Insurance Plans

This type of term insurance plan is designed for big organizations where a sizeable group of people work. This plan gives life coverage to all the employees of the organization. These plans are often customizable and offer critical illness cover as well.

If the types discussed above are more than you require, you can opt for a standard term plan with add-ons. Add-ons are rider options that strengthen your protection. But one thing you should keep in mind, riders have to be purchased additionally. So, it will increase your premiums if you buy these riders.

Term Insurance Plans are not only affordable; it offers further discounts on the fulfilment of certain conditions. These conditions include-

• You do not smoke.
• You are female.
• You do not have certain diseases such as diabetes.
• Your age also plays an important role on the premium of the plan.

Life Insurance plans are the best way to show how much you care for your family. So, before the worries about the future of your family come again, buy a term insurance plan and secure their future financially.