Life is full of uncertainties. A serious accident or critical illness could affect the financial stability of your family. But, if one starts investing in a life insurance, then safeguarding the financial future of your family becomes much easier.
A life insurance plan acts as a savior that protects your family against unfortunate events. Term plan is the purest form of life insurance. It not just ensures your family's financial security, but also gives an option to protect them from critical illnesses such as cancer, heart diseases, etc.
In life, we pass through several stages and each stage calls for different goals and plans. These goals include your first job, your marriage, your child, your retirement, etc. Thus, it is prudent to plan for your goals beforehand as it will help you to achieve them. Similarly, financial liabilities of a person are not the same, as they vary at different stages of life. Thus, you must choose your cover accordingly.
Also Read - Term Insurance Meaning
To help you understand better, we have made a list of examples that will help you determine why term insurance is important at every stage of life:.
- When you are young - When you start job at a young age, you have limited liabilities and responsibilities. Therefore, at this stage, buying a term insurance plan is the perfect choice for you. It would help you get larger cover at a lower premium. The best part about term insurance is that the premium paid towards the policy does not increases with age and is locked for the entire duration of the policy. Also, when you are young, you are less prone to critical ailments such as heart problems, cancer and your premiums are relatively lesser as for an insurance company you are less likely to develop any chronic ailments.
- When you get married - Newlyweds usually prefer buying an insurance to provide income protection for their surviving partner. For newlyweds, buying a term insurance is a perfect bet for you. As soon as you start your married life, you need to buy an adequate cover for your family to protect your spouse and family against the increasing liabilities, because such financial liabilities can fall on your partner if something happens to you. Keeping such situations in mind, it is good to invest in a term insurance plan. Starting a new life with your partner and making investments such as buying a car, new house would require a huge amount of money. Thus, with the rise in liabilities, it is important for you to ensure that you have adequate coverage that protects your family financially, if something happens to you.
- When you become a parent - The joy of becoming a parent cannot be described in words. It's the most beautiful feeling in the world. From excellent education to impressive lifestyle, it's every parent's dream to ensure that their child continue to live the best life, even when they are not around. Thus, many young parents nowadays have started investing in several financial instruments to make sure that their child's future is safe and secure. The claim amount can be used to fulfill your child's education needs and will cover them for a longer period. Basis this, it is ideal to buy a term insurance when you have financial dependents. Although, while buying a term plan, do not just go by the amount of premium. You must also look for the other things such as insurance company's reputation, claim settlement ratio, market share, etc.
On the whole, these are some of the stages of life when you need to re-think of your insurance needs.If you love your family and you don't want them to suffer, then it is advisable for you to buy a term insurance plan as it's important for a person to insure their family with adequate financial protection.
So, whether you are single, married or retired parent, always ensure that your family is financially stable in case of any unfortunate event so that they can live a secure and stress-free life. At Canara HSBC OBC Life Insurance, we bring you unique products as well as solutions that best suits your requirements.