Why Term Insurance? Securing the Future for Your Family
Think of Ramesh, who is a toiling father of two and spends long office hours solely for his family. He hopes his children will receive the best education, go to a university that can help them discover their passion, and lead prosperous lives. Life is uncertain, though. What would happen to Ramesh’s family if he were no longer there? That is where term insurance comes in-from being a shield to ensure that his family takes care of themselves economically at their worst times.
Do you know that close to 85 percent of Indian families are underinsured? This would mean that they are exposed to surprises when the unexpected event occurs. This calls for term insurance, as most people, just like Ramesh, forget to invest in their future.
Affordability and Coverage
The term insurance is an arrangement for giving a considerable amount of claim if death occurs before the end, when the contracted period of this insuring contract is disturbed. This payout will support other household expenses such as children’s education, family’s household and utility bills, and living expenditures, etc. This will aid the family to continue with their standard of living. The price appeal of term life insurance is another big factor. It provides more coverage for a lower premium than whole life policies. In the eyes of many families, this certainly makes it easier to afford. This is what primary earners, in this case Ramesh, should take into consideration when drawing up their plan.
| Age Group | Coverage Amount (INR) | Monthly Premium (INR) | Policy Term (Years) |
|---|---|---|---|
| 25-30 years | 1 Crore | 800 | 30 |
| 31-35 years | 1 Crore | 1,200 | 30 |
| 36-40 years | 1 Crore | 1,800 | 30 |
| 41-45 years | 1 Crore | 2,800 | 30 |
| 46-50 years | 1 Crore | 4,500 | 30 |
As seen in the table above, even at different age brackets, the premium rates remain relatively low compared to the coverage amount provided. For instance, Ramesh, aged 30, can secure a cover of INR 1 Crore for just INR 800 a month. This means he can safeguard his family’s future without straining his finances.
Emotional Security for Family
But above that game of numbers is the emotional peace that comes with term insurance. For instance, take Ramesh’s wife, Priya. The comfort she feels knowing her children will be taken care of for education and daily expenses even if he were to die today keeps her at peace. She can, therefore, concentrate on her family’s well-being and not spend restless nights wondering about financial instability.
Periodic Reappraisal of Coverage
However, a term insurance only runs for a specified period. So, Ramesh and other insureds should review often what they really need, especially when he passes through some particular stages in his life. For example, such may be the time he gets married, when he bears a child, or even when he changes job. The more he has to take care of the more his insurance should be there as well.
Conclusion: Protecting What Matters Most
Therefore, term insurance will be a saving and protective shield for the likes of Ramesh and Priya to ensure that, in the future, whichever life may bring, they will take care of their family. Not only does this term insurance ensure care for children, but the members of the family are also protected. Not money but knowing that he is taking the best care of his family is what matters for Ramesh. In this manner, he will have sufficient time to spend with them and witness them grow.
