Compensate for your Absence in the Best Possible Ways

Don’t all your plans revolve around your family? Moreover, if you are a parent, it is a case of who’s going to bring your child to a football match or an annual day or a gymnastics class? You always think of – Where are we going this summer? What will I do with my child during yet another mid-term break?

Yes, it is great that you are preparing for short-term tasks. For doing so, you may even have your system that ranges from post-it’s on the fridge to the more organised form of using whiteboards! However, being prepared for the future is where the real payoff can come for your loved ones and ensure they get financial protection, no matter what.

However, preparing for the worst may not be part of your daily mindset. For someone like you, who spends the better part of your day working to provide luxuries and comfort to your family, financial security might seem redundant as you are already providing for your family’s finances.

The question that needs answering is whether your family has the financial resources to maintain the current standard of living if something happens to you?

So how do you compensate for your absence?

A term policy is a convenient way to provide for your family’s financial security, especially if they are 100 percent dependent on you for finances. No matter how old you are or how advanced in your career and profession, term insurance can help you and your dear ones achieve financial security.

You should purchase such a term policy if:

• You are the primary or sole earning member of the family, and your loved ones depend on you for financial stability
• You want to ensure regular income for your family even in your absence
• You want your insurance policy to incorporate increasing cost of living due to inflation
• You want your loved ones to be taken care of in case of your disability or demise

Must- Know Features of Term policies:

• Term policies are cheaper and can provide you with more extended cover

Term insurance offers pure risk cover which explains the reason behind lower premiums. Also, buying a policy at the earliest ensures lower premium rates. Additionally, these policies have the provision to cover you until 75.

• You can select from different payout options

In regular term policies, in case of the death of the insured, the nominees receive the lump sum known as the death benefit. However, the nominees may not be equipped to make the most of this payout and may be unable to stretch it over an extended period.

Hence, term policies come with the option of regular income payout to allow the nominees the flexibility of receiving payouts for a duration of their choice. Moreover, there is no fear of the misuse of the lump sum amount.

Thus, you can give your nominees the choice to receive insurance money, as per their needs through different payout options like- lump sum payout or lump sum + regular income payout.

• You get the option to increase your protection through riders

Some term policies also offer additional cover along with the basic policies with the help of riders, for example, critical illnesses rider. So, if you are diagnosed with any of the covered critical illnesses, a lump sum amount will be paid during the first diagnosis, without the need to produce any hospital bills. Another rider known as ‘Accidental Death Benefit’ rider can make your plan a pure protection plan by offering additional sum assured in case of insured’s demise due to an accident.

Conclusion:

People often take loans and pay EMIs to make sure they can give their family everything they want and need. In case of an unfortunate event, they do not want the loss of their income and financial support to cause stress or derail the lifestyle of their family. Having a term policy in place is the best way to ensure your family is taken care of.

Furthermore, given the critical nature of term policy and its multi-dimensional applications, it is not a question of ‘if’, but ‘how much’ term insurance you should be taking to secure your family’s future!