How to Decide the Term of Your Term Insurance Plan?

Life is full of twists and turns, which together makes it one long interesting journey. However, you do not know when life may pull down its curtain on you.

That is why it is vital that you live every day to the fullest. Along with this, wisdom also suggests that you should secure your loved ones while you’re still there so that they can lead a decent life even after you’re gone.

Towards this, what you need to give them most is financial stability. This means leaving them with financial assistance and resources that can help them stand back on their own after the crisis.

Since, nobody knows when that moment may catch you, it would be wise to remain prepared well in advance.

For this purpose, you need a term insurance plan, which can provide financial coverage to your family after your demise. So, to begin with, let us help you understand what is a term plan.

What Is A Term Plan?

Under this, you only need to pay premiums for as long as the term lasts. Also, a point to consider is that your family will only receive the maturity benefit if he/she expires during the term period.

A term cover is one of the most reliable and economical ways to secure your loved ones. It provides a specific sum assured to your family in your absence if you pass away during the term period.

This means that the period is of crucial importance while buying the most suitable insurance cover for your loved ones.

5 Important Features of Term Plans

So, for this purpose, there are various aspects that you should consider before deciding the term of your term insurance. A few of them are as follows-

1. Liabilities

You may have taken some loans or mortgages which may still take certain years to be paid off. To make sure that the burden to pay these should not fall on your family in your absence, ensure that the term of your policy incorporates this aspect.

Let’s say that you’ve taken a loan, which say, will take 20 years to repay. In this case, it’ll be wise to go for a life cover that has a term period of at least 20 years.

2. Dependents and Commitments

At the time of purchasing the term cover, you may have children who may be too young to support themselves or old parents who are dependent on you.

In this situation, it would be good to take a long-term view and buy a policy that will cover all the years in which you’ll need to lend them financial support.

For instance, at the time of purchasing the policy, you may have kids who are still in school.

Considering that they will take another eight to ten years to become financially independent, you can go for a plan which has a term period of ten years at least.

This will ensure that if god forbid, you meet with an untimely death within this time frame, your dependents will receive financial support to sustain themselves. 

Also Read: Top 10 Best Life Insurance Companies in India

3. Affordability

A long-term plan does not necessarily mean that it will be right for you. As you need to pay premiums throughout the term, a longer term will mean that you will have to pay premiums for that long.

So, the wiser option would be to choose just the appropriate term for your plan, so that neither your loved one’s face discomfort nor do you have to bear the burden unnecessarily.

Moreover, compare it with other plans before buying one, so that you can get the best term insurance plan for your dear ones.    

4. Length of Support

The sum assured that the policy would provide your family will help them most during the period of crisis. So, it is for you to decide whether your family will need support until they get back on their feet, or for many years long after you’re gone.

Depending on your family’s condition and your affordability, you can select the right term period.

5. Secure Your Family’s Future the Right Way

Life is uncertain, but a little preparedness can go a long way in securing your loved ones. So, make the right decision and buy the best term insurance plan for your family after considering all factors.

Reputable insurers like Max Life Insurance offer comprehensive coverage at affordable premiums.

They also provide the option to add benefits like accidental death and dismemberment, premium waiver, and critical illness cover.

So, buying the right term cover for your family can assure you of your family’s security and happiness, even in your absence. Therefore, don’t hesitate and buy the right cover at the earliest.

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