Secure your family’s future with a term insurance plan

Term insurance can’t just be helpful in financially securing a policyholder’s family, but also in fulfilling important milestones for them. Know more here.
Term insurance is a kind of insurance that a policyholder signs up for, so that his or her family receives financial benefits on his/her death.(Bajaj Allianz Life)
Term insurance is a kind of insurance that a policyholder signs up for, so that his or her family receives financial benefits on his/her death.(Bajaj Allianz Life)
Published on Mar 16, 2021 04:48 PM IST
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ByHT Brand Studio

Life is uncertain and exigencies can strike without warning, leaving individuals and families in a financial lurch. The recent Coronavirus pandemic that has killed almost 2.5 million people across the world is a testament to this fact. [1] The demise of a family member does not just have a physical, mental, and emotional impact on other members, but also triggers financial uncertainties. That is why it is critical to be prepared for such events. It is here that term insurance could step in to provide a safety net.

Term insurance is a kind of insurance that a policyholder signs up for, so that his or her family receives financial benefits on his/her death. The policyholder can decide an amount to be paid to his/her nominee(s), in case of the former’s untimely demise.

The benefits from term insurance go beyond providing just living expenses to the nominees of a policyholder. A term insurance can also facilitate achieving important financial goals for the family. If you are someone who is the breadwinner of your family, or who significantly contributes to the family’s household income, then it is a good idea to go for a term insurance plan. Along with the biggest advantage of financial protection to your loved ones, a term insurance also offer tax benefits to you.

There are several term insurance plans available today that specifically cater to the needs of the policyholder and his/her family.

Why buy term insurance

It is said - "A stitch in time saves nine". In other words, it is important to be prepared to face any adversity. With term insurance benefits, one can be rest assured that their family will be protected, even in their absence.

Here are some reasons why one must invest in term insurance –

Safeguards your family: The biggest concern that leaves most people sleepless is ‘what’s going to happen to their families once they are gone?’ Thankfully, term insurance can take care of this aspect, and can ensure that there is a constant stream of cash flow, even in the absence of the policyholder subject to policy terms and conditions. That means the policyholder’s family does not have to compromise with their lifestyle. The pay-out that the policyholder’s family receives can be utilised for monthly expenses or critical life goals, such as the education of children or their marriage.

Protects assets: To live a life of comfort, one needs a car, a home and other such facilities. If these assets have been acquired using a loan, which is true in most cases these days, these comforts can turn into liabilities. With adequate term insurance, the protection of assets does not become a worry for the policyholder’s family or nominees. The sum assured that is guaranteed by term insurance plans can be used to pay off debts. Make sure that you take in to account your liabilities too when applying for a term insurance.

Protection against critical illnesses: We live in a fast-paced world, where most of our time is spent in front of a screen. Life has become very sedentary, and there is increased consumption of junk food. This has led to an increased incidence of several lifestyle diseases and ailments like cancer or heart ailments, which probably was not the case earlier. This means many of our expenses go on healthcare and that could turn in to a financial burden if you fall severely ill. That is why along with death benefit, term insurance plans offer option to choose additional coverage in case of critical illnesses, at a nominal extra cost. A critical illness cover can help the policyholder through a lump sum pay out if they contract any of the specified critical illnesses. This amount can be utilised for treatment, as an income replacement, or for any other purpose.

Types of term insurance plans

There are various kinds of term insurance plans that you can choose from. You could go for a basic term insurance plan, which is the simplest form of life insurance. In this case, the policyholder pays an amount of premium to the insurance company and in the wake of the policyholder’s sudden demise; the insurance company pays the sum assured to the nominee(s).

You could go for an increasing term insurance plan where the sum assured keeps increasing over the policy term. The opposite of this variant is a decreasing term insurance plan, where the insurance cover reduces over the policy term. Such plans are relatively cheaper and are generally suited to provide protection against outstanding debt like a home loan with sum assured decreasing as you gradually pay off the debt.

If you are looking for a policy that covers both you and your spouse, you could then consider a joint life term insurance plan. In this kind of term insurance, two members are provided cover under the same plan, so both of them do not have to buy separate plans.

Choose the right service provider

If you have made up your mind to buy a term insurance plan to protect your family from any uncertainties that the future may bring, you have made the right decision. However, it is an equally important decision to choose the right insurer that protects your family’s interests even when you are gone.

You could consider term plans by Bajaj Allianz Life Insurance, a trusted life insurance company that has a claim settlement ratio of 98.02 per cent~. Moreover, Bajaj Allianz Life Insurance offers a vast range of term insurance plans to cater to all your needs, which can help you, secure your family and achieve their Life Goals. Bajaj Allianz Life Smart Protect Goal – A Non Linked, Non-participating, Pure life term insurance plan offers you a 1 Crore cover @ Rs. 18 per day[#]. You get to choose from four variants depending on your needs, and it covers 55 critical illnesses^. You also get the return of premium option^, child education extra cover^ and a 3% discount on buying this term plan online. [$]

So without wasting any time, secure your family’s future now by buying a term insurance plan for yourself that best suits your and your family’s needs. This would help you bring in some certainty in the lives of your family in the midst of all the uncertainty that surrounds us.

[1] https://www.worldometers.info/coronavirus/

# Above illustration is considering Male aged 25 years | Non-Smoker | Life Cover Variant | Policy term (PT) – 30 years | Premium Payment Term (PPT) – 30 years | Sum Assured opted is Rs. 1,00,00,000 | Online Channel | Annual Premium Payment Mode | Premium shown above is exclusive of Goods & Service Tax/any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only. For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale

^ Product feature/benefit mentioned above are dependent on variant

$ Discount is available for regular premium and limited premium payment frequency under all variants of this product.

~ Individual Claims Settlement Ratio for FY 2019-2020

BJAZ-WEB-IC-00184/21

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Wednesday, January 26, 2022