A term insurance plan offers a high sum assured in exchange for affordable premiums – and the pay-off is tremendous.
For years now, every professional and personal decision you’ve taken has been influenced by the thought of how it will affect your family. You work as hard as you can, making many daily sacrifices so that you can provide for your loved ones every step of the way.
To this end, you can buy a term insurance plan that offers a high sum assured to your loved ones, in the unfortunate event of your demise. Consider the 5 ways in which a term plan corpus can help your family members in the future:
To maintain the household.
The primary focus area for any family is maintaining the home and keeping it running properly. This requires constant investment, and a lot of your income is diverted towards bills and general maintenance.
But in the absence of your income, house maintenance can be put in jeopardy – unless you have a term plan whose sum assured takes care of these needs for years.
To finance children’s education
Your children’s education is extremely important to you and you save money towards it every month. But this savings will quickly dwindle in your absence.
Your spouse’s income and your savings may not be able to meet the rising costs of your children’s education – but the best term plan can. Your spouse can finance your children’s education quite comfortably using the plan money.
To repay existing liabilities
You might accrue certain debts over your lifetime. These might include a house loan, and other borrowings like a credit card, personal or car loan. There might even be a few private loans taken from certain individuals.
It is well and good if these are all repaid but if they are not, then creditors will come calling in your absence. Your family should not be forced to sell off its assets to repay the loans – do the smart thing and invest in a term plan in India. The policy corpus can repay the loans easily.
To finance emergency medical procedures
A medical emergency may come in the future, and your family may not be able to meet its expenses without going into debt.
Medical care is quite expensive in India, so a lack of resources may delay important treatment. However, the term plan money can easily pay the costs of hospitalisation, surgery, daily medicines, etc.
To serve as a retirement corpus for your spouse
Your spouse might be a stay-at-home parent or a working professional – but they are going to need financial support to run the household in your absence.
Instead of being forced to sell the house to generate money, your spouse can comfortably live off the term plan corpus. It becomes a valuable means of spousal support, especially when your partner is retired.