“In case of your untimely demise, ghar ka kharcha kaise chalega”?
(Keeping Family afloat financially is Your responsibility)
1. Every Hour sixteen lives are lost to road crashes in India
2. Though we have just 1% of the world's vehicles India accounts for over 10% of global road crash fatalities.
3. Studies have shown that one in four crashes happen due to distractions created by texting & speaking on the phone while driving
Facts & Figures keep compiling and keep changing but one thing doesn't change that is our responsibility of keeping family afloat financially in case of untimely demise.
Endowment or Traditional plan will provide very less cover as compared to Term Insurance. The life coverage received under a term plan is quite large in amount as compared to that of an endowment plan. On the other hand, the death benefit received from an endowment plan will help your family overcome the immediate financial hardship brought by your premature death, but it may not be enough to sustain your family for a longer period of time. The bottom line is that if your family is financially dependent on you, it becomes mandatory for you to have a term insurance plan.
Endowment or Traditional plan will provide very less cover as compared to Term Insurance. The life coverage received under a term plan is quite large in amount as compared to that of an endowment plan. On the other hand, the death benefit received from an endowment plan will help your family overcome the immediate financial hardship brought by your premature death, but it may not be enough to sustain your family for a longer period of time. The bottom line is that if your family is financially dependent on you, it becomes mandatory for you to have a term insurance plan.
A Term insurance plan gives you
longer cover as it can cover you till the age of
80. It is the most basic, cost effective & easy to buy life
insurance plan which protects the financial future of your family at
a nominal cost. The premiums paid for
term plan are minimal compared to any insurance plan.
Why
Term Insurance is Mandatory?
We all have
so many things to do with our money instead of buying this insurance but
all these things are worthless if our family
is not covered. Getting insurance from
the reliable insurance service provider is important because it ensures that
the plan takes care of your family needs even if you are no more around to fulfill their requirements.
Some
experts suggest that the cover should be based on the life stage of the individual. “An earning individual up to the age of 40 should purchase a term plan with a life cover of
approximately 20 times the annual income, a person in his 40s should buy a
cover 10-20 times, and an individual in his 50s should opt for a life cover of 5-10 times the annual income. The term
insurance plan should continue till retirement age. Yet another thumb rule says it should be at least 8-10 times your annual income . In reality, the financial situation of every individual is unique and a one-size-fits all approach may not yield an accurate result
Things to keep in mind while buying Term Plan:
There is no min or max age for term insurance. Earlier you purchase the policy better it is. Do not be very late because as time passes, your premium amount will also increase depending on your age and also if you develop any illness or disease, it will get tougher to get the policy later. So once you are clear that you require a certain amount of life cover, go ahead and complete the action within few months.
Thnks
Rasmeet
Green Hedge Capital
Family Wealth Advisory
Soruces : Personal Views, Magazines, Internet, Articles etc
