Among the numerous financial products, term insurance is one of the most important ones that people tend to overlook. This post highlights why getting term insurance should be top on your priority list to protect your family’s future financially.
Introduction to term insurance and its purpose
Term insurance is a pure life insurance product that keeps its cover for a longer period. If the insured dies within the term period, the bonafide recipients will receive a lump-sum amount, which would be enough to secure their future financially.
Common misconceptions that lead to avoidance
There are numerous misconceptions that encourage people to reject term insurance.
- “I’m young and healthy, I don’t need it.” Most people feel that they are too young for life insurance to be necessary because accidents and illnesses may come at any time.
- “It’s too costly.” The fact is, term insurance can be relatively inexpensive, especially if taken up early in life.
Fun fact: According to a recent survey, more than 70% of Indian households are not well covered in life insurance, which has exposed them to great financial vulnerability.
True-to-life examples for the necessity of term insurance
Take for instance Meera, a 30-year-old working professional. She felt the need for a term insurance only when she started her family. The scenario indeed became gloomy when she died suddenly in an accident; it was then that the money received by her family from the term insurance eased them quite smoothly to clear off debts and survive with a minimum hassle.
Financial Consequences of Not Being Covered
In case you fail to achieve term insurance, it could end up suffering a severe loss financially. Without a policy, your family would not be able to raise the money to pay bills, settle education expenses, or even maintain their standard of living upon your death.
Steps to secure term insurance right away
To be sure that you get a good cover, follow these steps:
- Evaluate your needs: Calculate how much your family would require if you die untimely.
- Compare policies: Look at the various insurance providers and their packages to determine the best for your need.
In conclusion, term insurance is a part of wealth planning. Once you understand how important it is and debunk most of the myths attached to it, you will act.
