Family can be your topmost priority at every step of your life. Whether you are a bachelorette or a married individual, you would always wish for your family’s well-being. While singles might aspire to start a family in the future, couples can have a small family with their kids. Whatever life stage you are a part of currently, term life insurance can play an integral role at every step in your life.
A term insurance policy is a pure protection plan, which has been a part of the Indian market for a long time. The primary idea behind term insurance plans in India has always been the financial protection of your loved ones. With a term policy, you can ensure that your families are secure with or without you. Therefore, let’s understand what term insurance is in detail for better clarity before you purchase one for you:
Initially, a term plan was launched in the market solely with the purpose of family protection. As years passed by, term insurance plans in India have undergone a few changes based on your evolving needs. A term plan, which once only offered death benefits, has started to provide survival benefits today. The new-age term plans can return your whole premium amount, which acts as the survival benefits. Moreover, your family can receive a death payout to maintain their current lifestyle in your absence.
The new-age term insurance can comprise of exclusive features and benefits to match your dynamic financial requirements. Apart from this, there are a couple of other things that can help you understand why you should buy term insurance even without a family. Let’s take a look below to know why you need term life insurance:
- You can pay a lesser premium at a young age
When you are young, there can be chances that you might be physically fit. As a young adult, you might not suffer from life-threatening diseases such as cardiovascular diseases, kidney failure, cancer, and so forth. Due to a stable health condition at a younger age, your insurer might charge you with a relatively low premium. In simple terms, the fitter you are, the lower your premiums can be. Therefore, you should buy term insurance at a young age, irrespective of the fact that you are planning to extend your family or not.
- You can increase your term coverage
Your life can consist of various milestones such as getting married, having kids, retiring, and so on. As you cross each life stage, your coverage needs might increase. For instance, when you have kids, you might require higher cover. Therefore, to support each life stage, you should increase your term coverage. When you increase your coverage, you can ensure that your financial requirements are met at every stage.
- You can offer financial support to your spouse and children
After you get married, your children and your spouse might depend on you financially. While you might fulfil their financial requirements when you are alive, they might be left in a financial turmoil in your absence. Therefore, you should purchase term insurance to ensure that your loved ones are financially secure in your absence.
To conclude, term insurance should be an essential part of your financial planning with or without a family. However, see to it that you compare term insurance plans term in the market to understand the features, term insurance tax benefits, and premiums. Moreover, consider the financial requirements of your family and select a term insurance plan accordingly.