With our lives becoming highly uncertain, unfortunately, we can’t guarantee that we'll be around our loved ones to provide for them for a long time. Yet, we can help them by planning for their future with term insurance. Term insurance provides financial security in the event of uncertainty and gives the peace of mind knowing that our loved ones will be supported, no matter what happens.
It is all the way more important if you are the sole bread earner of the family. No matter how much you have saved over the years, sudden eventualities, tend to affect your family financially, apart from the enormous emotional loss. So, put simply, term insurance is the ultimate way to show your family how much you care for them.
Having known the importance of term insurance in one’s life, in the subsequent sections, we will understand what term insurance policy really protects:
Your Kids' Goals
As a parent, you will undoubtedly want to continue to provide for your child’s education and goals, even in your absence. Term insurance ensures that regardless of whether you are not around, your kid's goals are not compromised and are met on time. Moreover, the role of term insurance policy is vital in fulfilling your kid’s goals, as desired by you, at his/her different life stages.
Your Outstanding Liabilities
During our lives, we take on a lot of liabilities but in case something happens to you the burden to repay these obligations comes directly on your family. The saying “Home Sweet Home” may not be true for your family members if they are left bearing monthly installments after your demise. However, term insurance arms your dependents to manage financial issues. Any outstanding debt, whether it’s a personal loan, auto loan, home loan, or credit card debt, can be taken care of if one happens to purchase the right term insurance policy.
Lifestyle of Your Loved Ones
Apart from providing enough coverage to pay off your obligations and fulfill your child’s higher education or his/her goals, your term coverage can ideally help sustain a comfortable lifestyle for your loved ones. Moreover, term insurance policy acts as an income replacement tool and helps the surviving members to maintain their lifestyle in the event of death of the family’s bread earner.
Family Financial Responsibilities
When you buy term insurance, you can name a beneficiary to receive the money when you pass away. This means the money bypasses the estate process and is paid directly to your beneficiary. In addition, the money is not subject to probate fees and there is no delay in your beneficiaries receiving the payment. In addition, the term insurance policy also helps your surviving spouse cover your funeral costs, utility bills, daily living expenses etc.
As a business owner, term insurance can take care of the needs of both your family and business. The payout received can help your family continue with business operations or pay off any business-related liabilities. Moreover, term insurance plays a vital role in running the business till the family decides whether to run it or shed it.
Although nothing can replace the loss of a dear one, having access to term insurance benefits can lower financial worries for your family during an already difficult time. So, explore your term insurance options to ensure you are making the right financial move to meet your family’s goals. But before buying one, carefully calculate the required sum assured and buy the plan from a reputed insurer. This Will make sure that you have invested your hard-earned money wisely and that there will be no concerns at the time of claims.