Tying the knot and entering into a completely new chapter of our lives is exciting. We spend months in advance to plan for the perfect wedding so that the memories are engraved in our hearts for years to come. With each passing stage, new roles and responsibilities add to our lives. One common thing that is often overlooked is managing the finances and preparing a resolute financial plan to live without any worries. Understanding and managing finances is especially important as increasingly complex and effective investment products are widely available. Have you prepared your financial checklist yet? More importantly, is a term insurance plan part of your checklist?
Why should you include a Term Plan in your Financial Planning Checklist?
A term insurance plan is the purest form of life insurance policy that offers financial protection to you and your loved ones, in case of an unfortunate. To deal with the challenges and overcome the financial hurdles that may crop up – you need to have a plan for contingencies. And a term plan helps you prepare for the unpredictable twists of life.
Provides Financial Security
The economic impact on life due to sudden injury causing incapacitation or death may create serious financial hardships to an individual’s immediate dependents. Over the years, term insurance has been instrumental in offering financial security by providing a host of benefits to the policyholders and their family members. The sum assured is paid out to the family members in case the policyholder passes away.
Customisable as per Life Goals
Term insurance plans are highly customizable so that you can align your life goals as per the changing life stages. Your lifestyle may change in the coming years leading to more expenses. A term plan allows you to increase the sum assured to help you keep up with the change in expenses. Moreover, it also helps in beating inflation as the sum assured increases over time.
Inclusion of Spouse in the Same Policy
There are term plans available online such as iSelect Star Term Plan that allow you to add your spouse in the same policy at discounted rates. Remember the wedding vow that you both took while getting hitched? Be partners in finances as well as in life. Adding your spouse to the same policy is beneficial as you do not have to buy a new term plan. It will save you a lot of time, effort, and money.
Enjoy Return of Premiums
Some term plans offer return of premiums as an added benefit. Under this benefit, you are entitled to receive all the premiums that you have paid throughout the policy term if you outlive the policy. This doesn’t happen if you have a standard life insurance plan. You can secure the financial future of your loved ones with the benefit of having your premium returned to you, if you choose a term plan with return of premium option.
Read more about Return of Premium.
Option to Add Riders to Maximize Benefits
You can choose to add riders to maximize the benefits that you may receive from a term insurance plan. You will get option for riders such as critical illness, accidental disability, death due to accidents, etc. Choose the riders that suit your protection needs so that it doesn’t get heavier on your wallet.
Financial Planning is All About Knowing Your Priorities
Understanding your priorities to stack up tasks that will benefit you is an important step of financial planning. Only saving money cannot be considered as financially healthy. To be fit and fine, financially, you need to consider other avenues of money. Buy a term life insurance to protect your loved ones from sudden financial shocks, invest in a savings plan to have a regular income stream during your retirement; build a strong and resilient investment portfolio to cushion the financial shocks.