A term insurance plan is a small yet important part of your overall financial wellbeing plan. Term insurance along with other insurance plans and investments forms the safety grid for your family. It is this safety grid that they will rely upon when they need to start again without you.
However, death is not the only situation you need to prepare for in life, and not all the events are negative. Life is usually a mix of positive and negative events and while you need to protect yourself from negatives, you need to ride the positive ones.
Positive & Negative Twists in Life
When we talk about uncertainties in life, it does not always mean negative ones. Life is full of twists and below are some of the positives and negatives twists in life:
Marriage is one such life event that everyone knows will come at some point in life. No one knows when it will come. Once it comes, it adds additional responsibility to you. You can take care of your spouse under all circumstances if you have a term insurance plan with you.
2. Child Birth
When you have children, it is not only about meeting their day-to-day needs. It is also about securing their future - preparing for their education and marriage. You save for years to give them the best possible education. However, if something happens to you, the only way they can still get a good education is if you have term insurance.
3. First Home Purchase
Home is an essential goal in life. Also, this is one of the largest financial goals after retirement. So, whenever you happen to take ownership of your house, you are changing your financial and life situations dramatically. More so if you buy the house property on loan.
No one likes to have this twist in their life. Illnesses always come without knocking at your door, and if you are unprepared for it, it can financially ruin you and all your dreams.
Just like illness, another life event you don't want to go through. In case you are stuck with a disability, it will be tough for you to continue working, and if you are the only breadwinner of the family, the things you have planned for your loved ones will be doubtful and have a question mark.
No matter how well you plan to secure the future of your family, if you die, their future becomes uncertain. Your death will not have an emotional impact on your family but also a financial impact. It is not much you can do about the emotional impact. You can certainly take care of the financial impact your death will have on your family.
One way to be prepared for all these twists of life is by having term life insurance. Term plan comes with a number of benefits and features that can take care of the above twists in your life.
Four Features of Term Insurance Plan That Makes a Difference
1. Increasing Cover
A term insurance plan gives your nominee a lump sum amount (sum assured) on your death. As your responsibilities (dependents) increase, the sum assured should also increase in the same proportion. A term insurance plan takes care of this aspect for you. For example, you are unmarried, and you may think a term plan of Rs 50 lakh sum assured is enough. However, when you get married, the same amount will not be enough. Similarly, when you have children, you will need an even higher cover amount.
Canara HSBC Oriental Bank of Commerce Life Insurance term insurance plan takes care of this situation. You can have a total of three increments under the same term plan:
a) Marriageb) Childbirthc) Home purchase
Alternatively, you can also choose the option to automatically increase your life cover every year. This option takes away the need to put extra effort to get your life cover to keep up with your life.
2. Additional Sum Assured For Accidental Death
A breadwinner’s accidental death is known to cost a lot more than just their income. Often, the family has to spend a part of the savings in treatments, and recovery of the body. Thus, adding an optional sum assured that will fulfil the family’s expenses in the case of accidental death is a good choice.
So, if you die due to an accident, the beneficiary can receive a higher amount as the sum assured with only a slight increase in premium.
3. Accidental Disability
You can go through permanent or partial disability in life. A term insurance plan gives you the option to take on riders to cover such a life situation. If such a situation occurs, the beneficiary receives the sum assured to take care of your medical needs and family's monthly needs. Canara HSBC Oriental Bank of Commerce Life Insurance iSelect Smart360 Term Plan has an additional feature - in such an event, all your future premiums are waived off, completely.
4. Regular Income Payout Benefit
If death is a negative twist in life, living a healthy life is also something you should be prepared for. A term insurance plan takes care of it. Upon maturity, you can have an option to avail return of premium benefits. You can use this for some of your unfulfilled dreams. You can choose how you want to receive the payment - monthly, yearly, half-yearly, or yearly.
Term insurance is one of the best ways to prepare for each twist in life. It is built such that you don't have to worry about a specific twist, it takes care of most of them.