Why you should protect your loved one with best term life insurance
Life is uncertain. Hence, it gets even more crucial to plan for them, such that your family members can stay comfortably and manage their day to day expenses while achieving their goals, even when you are not around. The financial stability of your family is essential when you are planning for the future. And this is the reason why you need to avail the best term life insurance.
While choosing an insurance policy, you need to look at various aspects of your life as a family person. For instance, with another individual joining you after marriage, life certainly takes its own direction with multiple responsibilities to handle on a regular basis. When kids arrive, it is even challenging to multitask as you need to plan for goals, commitments, investments, and finances, taking into account the entire family’s likes and wishes. The best term life insurance plan will act as a protective umbrella not only for you but for the whole of the family.
How you can choose the best term life insurance plan to protect your loved ones?
It is common nowadays to take home loans, personal loans or other miscellaneous loans to cover the expenses of the family. If you are a newly married couple, it is difficult to avoid certain expenses. To honour these financial commitments even after your absence, it is not enough for you to take any term plan. You should spend a considerable amount of time reading through the term plan documents, comparing it with peers, decide on whether it suits your future needs and then finally making the purchase.
When it comes to family, we know everyone wants to choose the best term life insurance policy, there are certain features that you need to check before making the purchase. They are:
A total cover for the entire family: The term insurance provides you and your family with a complete shield to safeguard against future uncertainties that might include your death, illness, accident etc. So, suppose your family is entirely dependent only on your income. In such a case, you should select for a coverage amount that covers every family member’s needs, including your spouse, kids, parents, and in some cases, your in-laws as well.
Opting for a small cover will expose your family to the risk of being underinsured, which is equivalent to no insurance at all. The best term life insurance plan will treat you with customisation options that allow you to increase or decrease the sum assured during certain events of your life. Through this, you will be able to manage the sudden changes happening in your life easily.
Covers Liabilities: Safeguarding your valuable assets and making sure the liabilities are adequately handled even in your absence is the main reason why people go for an insurance policy. It helps to avoid loading unnecessary burden on the family, especially if you have taken a considerable amount of loans to purchase your home, car, kids’ education, and so on. Having insurance in place will give your loved ones an adequate sum assured that they could use to close the liabilities and use the remaining funds to take care of their livelihood expenses.
Rider options: A regular term insurance plan provides a death benefit, but its functionality can be extended by adding riders to the existing policy. Though riders come at the cost of premiums, you are guaranteed peace of mind and enhanced protection by spending a little extra.
Not only this, but your family is also protected in such cases of uncertainties that might occur, apart from death. Some of the common rider options provided by insurance providers are:
● Accidental death benefit: The decided accidental death benefit amount is paid to the nominee.
● Accidental disability benefit: The policyholder is paid the pre-decided accidental disability benefit amount in case he or she meets with an accident that results in any sort of disability.
● Serious illness cover: Under this option, the insured is paid the serious illness benefit on diagnosis of the ten covered serious ailments.
● Critical illness benefit: The critical illness benefit is paid to the diagnosis of two critical illnesses: cancer and heart attack.
Inclusions and Exclusions: What does your term insurance policy cover and what it does not, is a question that you need to answer. The term policy coverage is designed to provide death benefits to the insured only if the death falls under certain categories. In case it does not fall under the listed categories, the chances of filing a successful claim are less or could even lead to rejection. This is one of the essential aspects to keep in mind while determining the best term life insurance plan.
The term plan and claims cover the following deaths are generally accepted without any issues:
• Death due to natural causes or health-related issues
• Death due to accidents.
The following deaths are not covered under the term plan:
• Death due to self-inflicted injuries
• Death by suicide (refer terms and conditions of the policy)
• Death by homicide (murder)
• Death due to intoxication
Has multiple payout options: The death benefit payable by insurance providers can be customised according to your family’s needs and requirements. If you want a monthly income kind of facility to be given to your nominee, instead of the regular lump sum, the best term life insurance plan you choose should have options to accommodate it.
The four popular benefit payout options are: Full lump sum payout, Lump Sum + Regular Monthly Income, Lump Sum + Increasing Monthly Income, Lump Sum + Regular Monthly Income for the child (child support)
For your family to stay secure from any financial troubles after your demise, make sure to choose the best term life insurance plan based on the above essential parameters. Bimakaro.in helps you in that process by providing a simplified interface for comparison of term plans without any bias. Among a huge list of market policies, websites like Bimakaro assist in choosing the right one for you and your family.
