We all do thousands of things to keep our family happy, don’t we? From maintaining a certain lifestyle for them to fulfilling their wishes, we do everything that is possible for us. However, have you ever imagined a situation where you are not there with your family anymore and they cannot keep up with the current lifestyle? Heartbreaking, isn’t it? It actually becomes even worse when the only breadwinner of the family dies. We cannot take guarantee of our life though but we can at least plan our finances, right? One of the best investments that you can make in this regard is buying a term insurance plan.
Why buying a term insurance policy is important?
Many of us think that putting money into a term insurance plan is not useful since it does not offer any maturity benefit. Seldom do they realize that even if it does not come with maturity benefit, it offers a huge sum assured to the family of the policyholder if he/she passes away within the policy term. The sum assured provided by the insurance companies can go up to INR 1 Crore or even more than that. Some of the insurers even let the beneficiaries take the death benefit on monthly basis. Apart from these, there are several other benefits of having a term insurance plan, let us take a look at them:
- Low premium: The premium that you would be required to pay for the term insurance plan you have bought is way lesser as compared to the sum assured that the nominee of the policy will be getting. For example, some insurers offer policies that will enable you to pay INR 7,400 per annum for a sum assured of INR 1 Crore.
- Financial security: If you have taken a loan that you are paying off in the form of EMI, and all of a sudden you meet with an accident and pass away, the entire loan amount has to be paid off by your family. And if the family is completely dependent upon you, it can turn out to be a very tough situation for them. However, if you have a term insurance plan, they can use the death benefit to repay the loan amount. They can use the rest of the money for other purposes.
- Riders: By paying an additional premium you can avail of the benefits of riders. However, there are several types of riders that come with different term plans. You need to choose the rider accordingly. Buying a rider is helpful as the beneficiary of the policy will get coverage of the rider along with the sum assured.
While you make up your mind about buying a term insurance plan, you also need to set your budget accordingly. This is why using a term insurance calculator is so important. If you still want to know why using a term insurance premium calculator is so helpful, here are some reasons for you.
Using a term insurance premium calculator can save a lot of your time. All that you need to do is to enter the details and the result will be there right in front of you.
Gives an estimate
You will have an estimate of how much you have to pay per month, quarter, or year. This will help you to manage your budget accordingly.
You can make an informed decision
When you use a term insurance premium calculator, you can make an informed decision. You will get to know about the kind of money you are going to put in and the sum assured that your family can get.
Now if you want to purchase a term insurance policy, you can visit the website of IIFL and check all the policies available there. You can also use the term insurance premium calculator to get an idea of the money that you have to pay.