How Important is a Term Plan in 2020?

Life is simply uncertain; you never know what the future holds for you tomorrow.

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Life is simply uncertain; you never know what the future holds for you tomorrow. And surely none of us can predict the future. Of course, we do assume but assumptions do not take us anywhere.

What is required is planning, a full proof planning for tomorrow. The better tomorrow for the family in a way where your family need not suffer financially.

Buy a term plan and secure your family from any financial implications. The term life insurance plans are easy to understand and cost-effective plan that will shield the financial future of the family that too at a nominal expense.

In case you think that term plan premium is expensive then you are mistaken. Compared to any other type of insurance plan, a term plan premium is low.

Why Should I Choose a Term Plan in 2020?

Well, 2020 is one year that has surely made us understand the importance of having insurance. A year, which none of us thought would be like this. A year that has taught us that eventuality will never come knocking and it is time to be prepared for the worst. The novel coronavirus is still there and will be there in the coming months as well until the vaccine is available. But that does not mean that we are not leading our lives.

After the lockdown, things are steadily coming back on track and we are taking the maximum precautions we can. Likewise, it is important to provide your family with a secured future so that even in your absence they can cope with us specifically financially. Let us take an example of Mr Prasad and try to establish the importance of buying a term insurance plan in 2020.

Mr Prasad is a 52-year-old who is a regular smoker and works in a textile factory at a managerial designation. He has two children, a daughter who is 24 years of age and a son who has turned 19 this year. Mr Prasad’s daughter has finished with her graduation a couple of months back and is now keenly looking forward towards doing a job. On the other hand, Mr Prasad is looking forward to a suitable groom for his daughter to get married. However, in an unfortunate accident, Mr Prasad lost his life and the family feels extremely helpless as Mr Prasad was the breadwinner of the family.

As the family was still grieving with the loss, an insurance executive contacts Mrs Prasad and informs her about insurance cover of Rs 1 crore that Mr Prasad had bought a decade back and now the sum is payable to the family as a death benefit. This amount was enough for the family to lead the life normally and meet the everyday expenses as well as the marriage of the daughter and the education of the son.

How to Choose the Best Term Plan in 2020?

When it comes to buying a term insurance policy possible you will be confused in selecting the plan. This will happen because the market is flooded with different plans.

It is highly recommended to buy the term insurance plan online as you will be able to compare the term insurance premium quotes and features. This will help you to choose a term plan that meets your requirements and likewise your needs as well. Following is a list of things that you need to be mindful when planning to choose the best term plan in 2020:

  • The Credibility of the Insurance Provider: When planning to buy a term insurance policy, select the insurance provider who is capable enough to manage the fund of the policyholder and has earned goodwill in the insurance business. This is important because buying such a plan is a long-term investment and surely the policyholder would not wish to be stranded with a troublesome or an insurer that is unreliable.
  • Claim Settlement Ratio: This is one of the most key aspects that should be considered by anyone who intends to buy any sort of an insurance policy. The claim settlement ratio is important as it shows the efficiency of the insurance company of settling the claims. The insurance companies that have high and healthy claim settlement ratio are mostly reliable and the best thing to do is to go with the term plan of that specific insurance company.
  • Cost of the Premium: The premium sum payable that is for the eligible term cover is another prudent factor when it comes to selecting the term plan. Most likely, the policyholders will be paying term insurance premiums for a longer-term such as twenty years. Therefore, choose the term insurance premium that is reasonable for you to pay and does not become a burden upon you. Make sure that the premiums are paid timely so that the policy is in force and does not lapse.
  • Obtain a Quote: Before you zero down term insurance plan make sure that you get a quote from the insurance provider. Getting a quote will give you a better understanding and clearer picture of the coverage and the premium sum that would depend upon other important aspects such as the age, income, smoking habits and so forth. If you wish you can also easily use term insurance premium calculator online and make an informed decision.

The Bottom Line

Being prepared for the future of your loved ones is not at all a bad idea. In case you think buying a term plan is not required then it is simply a deliberate irresponsible choice of yours wherein you are simply putting the future of your loved ones at stake.

If you are the breadwinner of the family, then the safety of the financial future of the family is of utmost importance and should not overlook at any cost. Not having a term insurance policy at this point is surely not a risk worth taking.

Therefore buy the best term plan in 2020 and provide the financial safety net to the family even if you are not around.



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