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What Is The Importance of Buying A Term Plan?

Planning to buy a term insurance policy is a wise decision to fulfill the financial needs of your family.

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Buying A Term Plan

Protectiveness is a natural human instinct we feel towards our loved ones. The human urge to look out and care for our family is unmatched to any other emotion. Therefore, there is an uneasy feeling that settles in when we think of the future and its uncertainties lurking at its edges. You might have heard the phrase, “prevention is better than cure”. Getting yourself a term plan, is the perfect remedy to your rising anxiety of the unpredictable future. A term plan is a life insurance policy that not only provides you a life cover but also insures that your loved ones are provided for in your absence.

The term insurance provides coverage to the insured individual for a specified period. In an unfortunate event where the insured can no longer provide for his/her loved ones, the coverage amount is paid to his/her nominees.  As part of the term policy, the insured individual has to pay a certain predefined premium amount and can choose to do so on a quarterly, bi-annual or an annual basis. If you haven’t already purchased a term life insurance you should do so right away. Now, you can even procure an online term insurance, this way you avoid the additional paperwork. Here are five reasons, which will compel you to procure your term plan today:

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1. Financial Cover – In the event of the premature death of the insured, his/her family will receive a financial cover to ensure that they are taken care of. This cover will provide for their daily needs as well as any contingency needs.

2. Maintaining a standard of living – This is one of the most important reasons why people purchase term insurance plans. While you are alive, you have established a certain lifestyle for your family. In your absence, you do not want your family to suffer. Therefore, the coverage received by your family can ensure they maintain the same standard of living as before.

3. Lower Premiums – As compared to other life insurance policies, term plans offer lower premiums. An individual can purchase a term plan at the age of 30 for an amount of Rs 1 Crore. The duration of the policy can be of 30 years; this would thus make his premium amount Rs 8,500. This is comparatively lower than other life insurance plans.

4. Short-term liabilities – You can purchase short-term investment plans to protect yourself against short-term hiccups such as a house loan or children’s education loans.

5. Settling anxiety – Getting a term life policy allows you to stop guessing the future and gaining some peace of mind. It is a way for you to let your worries go, and focus on living in the moment.

It is important that you live in the present. Constantly worrying about the future can make one enjoy the present less. Leave your worries behind, be wise and purchase a term life insurance policy to protect your family and yourself in the future.

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