A recent survey has shown 40% of the people aged between 20-25 are familiar with the term Pure Protection Term Plan, but only 17% have purchased life insurance policies. Millennials are relatively more aware and have access to more extensive information due to the avid use of technology. Although when it comes to making decisions regarding insurance, they dodging it with the YOLO – you only live once attitude.
Today life has become so uncertain that having a good term plan has become a necessity. In times of unforeseen events like accident, critical illness or death, a good insurance plan works as a protection to your family against the financial problems when you are no longer around to take care of them. There are various types of term insurance plans available that offer different features.
Here is a guide to help you choose a term insurance plan suitable to your life stage.
- When you get your first job
When you start your first job after completing graduation, you have no family depending on you and you in your best health. Which is why often people at this stage avoid the idea of buying a term plan. This is a wrong way to think as many people take educational loans, and in case of uncertain death, the family of the deceased will have to pay-off the credit. To secure your family from the burden of such loans, you must take a term insurance plan that will take care of the loan premiums. Another advantage of taking term insurance at an early age is that you are usually in good health at this stage, so the premiums are less premiums making it more affordable.
- When you are married
Marriage is a long-time commitment where two people swear to take care of each other in health and sickness. But what happens when one of you is no longer there to take care of the other? Well, you can still ensure the financial security of your loved one even when you are not around. And this is possible if you have a good term policy. A term policy with monthly income is an ideal option to invest in to protect your spouse from financial burden after you. Later you and your better half can take the same policy jointly so that both the partners have the security of being financially stable after the other one is no more.
- When you have children
Once a child is born, he/she becomes the priority for parents, and they could do anything to keep that child secured. You would want to provide your children with the best education and lifestyle and fulfil all their dreams even when you are no longer alive. Also, you would not want your spouse to struggle to provide your family with a good life after you. Hence, investing in a good term insurance plan is crucial when you are married with kids. A term plan that offers both lump sum pay-off, as well as monthly income, is the best option at this stage.
- When you are getting retired
At the age of retirement, you surely don’t want to depend on anyone to take care of your expenses. Financial security is most crucial at this age. Therefore, having a term plan that offers increasing monthly income along with benefits of life cover makes an ideal choice to enjoy your golden years.
Selecting a term plan keeping the need of your life stage will not just provide you peace of mind that your family is secured even after you but also it gives your family a sense of being secured.