There is no arguing with the fact that life insurance is the backbone during uncertain times. When life stuns you with surprises at every turn, there is not much control one can possibly have on the future events but there is one department which if planned properly can be in you control and that is finance.
To this end, term insurance assists a person in taking effective steps to secure the future of his loved ones'. In case of an untimely demise of the earning member of the family, his or her family is left dependent on others. Inflation, increase in living costs, increased debts, expense incurred on children & medicine, & retirement planning requires significant amount of money at every step. All of these expenses can be covered by term insurance plans.
However, majority of people are smitten by the idea of buying term insurance plan because it offers high coverage at the expense of lower premiums. The simple principle behind opting for term plans is that they offer a large sum at maturity at low monthly premium. However, term insurance does not offer much benefit apart from the death benefit. You do not enjoy any maturity benefits with traditional term insurance plans. The sum at the time of maturity is paid out as lump sum amount to the immediate beneficiaries of the policy holder.
Should we choose term insurance over expensive policies?
Till the time term insurance plans offer adequate cover for your future needs, they are sufficient. You have the liberty to additional covers for life and health. Generally, term plans are highly beneficial for people with low financial reserves, such as people who have just started working. Nowadays, insurers are modifying term plans that include other benefits at maturity.
Even at highly competent premium payments, it is easy to get your hands on a feasible term plan. Aditya Birla Sun Life Insurance (ABSLI) offers a brilliant insurance plan that goes by the name ABSLI DigiShield Plan. This plan offers level term insurance & increasing term insurance. In the former, the sum at the maturity remains constant throughout the period of policy, and in the latter case, the sum at the maturity increases by 10% every year.
The ABSLI DigiShield Plan can be easily purchased through the internet, and you have the freedom to choose the sum assured and the tenure of the policy.
Should the cost of insurance be considered?
When it comes to protecting our loved ones, is the cost of doing so really an important factor to consider? There is no price one can set on the safety and security of our family. If your family's dreams are important to you, would you really consider taking an insurance policy that is cheaper or one that provides the coverage you need for their future? You decide.