Be Your Own Santa & gift a Financial Protection to Your Family!

Christmas is just around the corner that will fill your family with joy specially kids. It brings along family get-togethers, parties and gift sharing. In this festive occasion, you just want to give your family a gift that is guaranteed to raise a smile in your presence or absence. But, it is not always easy to find a personalized gift for your family at such a splendid occasion.

Why not become a Santa for your family and gift them a Life insurance plan. It might not seem an exciting gift, but it gives your loved ones a sense of financial protection which is imperative in this uncertain world. On a practical ground, life is uncertain and mishap can occur to anyone, so it would be better to secure the future of your family. This gift will provide financial protection for your family in your absence as well.

Get Financial Protection through a Term Insurance Plan in the Most Affordable Cost

A term plan provides a pure life cover that ensures comprehensive financial protection to your family. It pays a sum assured to the family on your death that they can use to meet their immediate and recurring financial expenses.

Why You Should Opt for Term Plan to Offer Financial Security?

Buying a term insurance policy is the best affordable way to safeguard your family against financial loss in the event of your unfortunate demise.Here are the top reasons to buy a term insurance plan:

Financial Security for Family: Due to an unfortunate event of your death, your family have to bear a huge financial loss and they are put into a situation of financial crunch. A term insurance policy provides your family an amount equal to the sum assured, in case of your death.

For example, Rohan has bought a term plan of Rs 75 Lacs with the policy term of 20 years. After 5 years of purchasing the plan, he met with an accident which lead to death and his family received Rs 75 Lacs as a lump sum. This payout helped his family to meet their several financial requirements.

Meet Financial Objectives: In case of your demise during the policy term, the financial goals & objectives of your family may be put at a risk. Having a term plan, provides the sum assured amount that can help meet financial obligations.

For example, Rohan has bought a term plan of Rs 50 Lacs cover considering long term objectives such as his child’s higher education and marriage. In case of of Rohan’s unfortunate demise, his family receives the sum assured amount that can be used to meet financial obligations towards the child’s higher education and marriage. This payout also helps meet day to day financial expenses.

Pay Off Financial Debts: In case you have borrowed loans to buy a home and car, with a thought that you can easily pay off the debts within the next 15 to 20 years. But, due to your unfortunate death before re-payment of loans may put this huge financial liability on your family. By buying a term plan, your family can easily repay the debts and they don’t have to face any financially distressing situation.

For example, Rohan has bought a term plan of Rs 50 Lacs cover, so his family can repay the outstanding home loan. The home loan of Rs 25 Lacs needs to be paid by his family, in the event of his death. With term insurance cover, his family can easily pay off the loan amount and still left with another Rs 25 Lacs to meet other financial expenses.

Acts as a Monthly Income: In case of your death during the term of the policy, managing day to day expenses might become a serious financial issue. By having a life cover with regular income benefits, your family can easily meet their day to day expenses and help them attain financial independence.

For example, Rohan has bought a term plan of Rs 50 Lacs cover with monthly benefit. In the event of his unfortunate death, his family receives a part of the sum assured (40 % of Sum Insured) as lump sum benefit  (Rs 20 Lacs) and the remaining amount (Rs 30 Lacs is spread over 10 or 15 yearsas per the plan, to be payable as a monthly income to render their monthly household expenses.

You may Follow the Following tips to Choose Right Financial Protection Plan

You may follow some key tips to buy a term plan that fulfills all your family’s financial needs.

Assess the Life Cover: Before buying a term insurance plan, you should first assess the life cover you need depending on the number of dependants and their financial goals, so the life cover you choose must fulfill all the financial requirements, in your absence. Before you choose the life cover, you should keep inflation factor in mind.

Buy at a Younger Age: Buying a term plan at a younger age, say at around 25-30 years helps get the plan at a quite affordable cost. You can get a higher life cover at a reasonable premium amount.

Buy Online: There are several insurance web aggregators like us who help, check the term plans available from different insurance companies. You can check the benefits & features of term plans and then pick a right term plan that suits your protection needs. An online term plan is also available at a discounted premium rate.

Choose Appropriate Riders:  Arider helps enhance protection under a term plan and by choosing a suitable rider, you can avail additional protection with different scenarios such as Accidental death benefit, Disability, Critical Illness, etc.

Read Policy Terms: Before you buy a term plan, it is advisable to go through the policy terms & conditions, so you could make a right decision of securing your loved ones against financial adversity.

Conclusion

Buying a term plan is a smart move, if you are looking to ensure financial independence of your family, when you are not around. It’s better to further assess the type of term plan that suits your family’s protection needs and then buy a term plan online.Let this Christmas be the remarkable occasion to gift your family the happiness that lasts forever. We tend to buy tangible things for our family, but buying a life insurance plan is the best decision that you could make to ensure that your loved ones are secured financially even if you are not around. Life is unpredictable, ensure a better decision today for a brighter tomorrow.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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