Financial planning creates a roadmap for managing your financial resources to achieve your long-term goals. It entails developing a thorough, personalized plan that considers every element of your financial status, including your income, expenses, assets, liabilities, insurance coverage, and investment portfolio.
Whether you are saving for retirement, buying a home, or paying for your children’s education, effective financial planning is essential to ensure you have the resources you need to achieve your financial goals.
While it is possible to manage your family’s finances today, doing the same in the face of adversities such as death is impossible. Your family can get impacted both emotionally and financially. If you cannot help your family emotionally, you can help them financially by buying a full–suite term insurance plan.
Continue reading to learn more about what is term insurance plan, how it is helpful, and why you should get it.
What is a Term Insurance Plan?
It offers coverage for a predetermined period. The beneficiaries get the death benefit, which is the sum due in the event of the policyholder’s demise. No monetary gifts or the sum are given if the insured survives the period.
An individual can purchase coverage under a term insurance plan or term cover by making a premium payment. The nominees or surviving family members will be compensated with a death benefit payment.
In the face of the COVID-19 pandemic’s unpredictability and financial burden, it is even more crucial to ensure that your family will be taken care of, no matter what the future holds. You can do this by using a term insurance plan. Term insurance plans guarantee a pay-outwithin the parameters that IRDAI governs.
Features of a Term Insurance Plan
Uncertainty is the only certainty in life. Possibilities of sudden death, accidents, disabilities, and diseases always exist, even if we do not like overthinking them. Therefore, avail a significant term insurance plan that will help your family financially. Below are listed a few features of a term insurance plan.
What is the Need for a Term insurancePlan?
It is natural to ask what the need is for a term insurance plan. So, here is the answer to your question:
Things to Consider Before Buying a Term Insurance Plan
Below are listed a few points that must be kept in mind before buying a term insurance plan:
By now, you must be clear about what is term insurance plan and its benefits. A term insurance plan is crucial to any comprehensive financial planning strategy. It provides much-needed financial security to loved ones in case of the policyholder’s untimely death, ensuring they are not burdened with debt or living expenses. Furthermore, term insurance plans are affordable, making them accessible to a broader range of people.