Let me tell you a story, a story that we have become quite familiar with the recent times.
Aditya, a 47-year-old young gentleman, works as a senior manager in a multinational company. He has a wife who is a homemaker and two children Rishab is 14 years old, and Rhea is eight years. This Monday morning, he suffered from a severe acid reflux attack and succumbed to it on the way to the hospital! After days of emotional loss and mourning, Aditya’s wife is left with the dilemma and anxiety of providing for the family. Will Aditya’s savings and pension fund be sufficient to provide for the higher education of her two children Rishab and Rhea. How will she be able to manage the house EMI, besides the daily expenses? Had Aditya’s wife been a working woman, would the story be different? I don’t think so. Wouldn’t it be better to have somebody, some plan B, to take care of the financial needs?
Wouldn’t it be nice to have a financial protection plan to protect the financial loss caused by the deceased earning member?
Enter the life insurance company. Life insurance is of utmost importance for the financial security of your family.
Just like vehicle insurance provides monetary value for the vehicle that has met with an accident, home insurance provides the monetary value of whatever has been damaged or stolen from the house; life insurance provides monetary value to the life of the person.
Life insurance cannot replace the emotional and sentimental value of the member but, very importantly, can secure the financial security that the member provided to the family.
Had Aditya have a term plan insurance, his family would have at least the monthly instalments and education fees taken care of.
Term plan insurance is the simplest and easy to understand insurance terminology. Term plans are insurance plans set for specific terms such as 5, 10, 15 or for 20 years. These plans are set for a specific time period; hence they are called term plans.
There are also the whole life and annuity plans. A whole life plan ensures the earning member for the entire life span of the insured. Some insurance companies do keep a cap of 80 years or 100 years. Annuity plans work more like a pension plan where a fixed amount is given to the insured at regular intervals
Compared to term plans, both whole life and annuity have a higher premium to be paid.
For a regular family, a term plan is the best option unless there is a special disability or other factors where a whole life plan can be taken.
Term Plans are cost-effective, and the corpus got from the insurance at the end of the term can be used to fund important life events such as education, marriage or home improvements.
If planned well Term Plan is the most affordable and practical solution for the protection of the financial security of your family members.