With the changing lifestyle patterns and an expanded realm of needs and wants, the salary income of most people is not sufficient to comfortably finance everything that they desire in their life. While chasing the different needs of the family, battling inflation, and fulfilling the wants of loved ones, it is a constant worry for most to figure out the way to secure some wealth and assets for the family to bail them out in emergency situations, and worst case, death.
With saving getting much harder as a result of the rising expenses, term insurance is a wonderful way to care for the family and secure their finances in light of the most unfortunate of situations that can occur. Here’s why it’s a must to be considered as an investment option, especially if you’re a salaried professional:
1. Simplified Form of Investment
Among the different forms of insurance plans, term plans are the most simplified and easy to understand. The entry barrier in terms of opting for term insurance is almost negligible. The plans are applicable for a really wide age group, and the premiums charged for the death benefit are among the lowest in the class of all insurance products.
This makes them a very attractive option for salaried persons. With even a fixed and limited monthly income, premium payments don’t feel like a burden at any point while they offer great financial security and mental comfort.
2. Helps to Smoothly Sail Through Life’s Goals
Term insurance is known for offering a huge amount of mental respite. It eliminates the need to constantly worry about stretching too much to save at each point, and compromise where it matters to sail through life’s goals.
Just like everyone else, every salaried individual too has financial milestones in their life. It could be marriage, having a child, retirement and so on. Having invested in a term insurance plan offers an unparalleled sense of security and helps to live a life free of compromises in those moments.
That’s because there are many plans available with different flexible payout options. Insurers like Max Life Insurance offer payout options like monthly income and increasing monthly income that makes it easy and smooth to meet the different financial milestones of your family’s life when you are no longer present to support them financially.
3. Great Way to Support the Family
In many cases, if there is a sole bread earner in the family, all the members are completely dependent on that one individual for meeting any and all of their needs. This puts a lot of strain on that person to meet the present expenses, and also save for the family’s financial security and future.
Term plans offer great support to that end. The premium payments help to save, and also give a regular stream of income. Moreover, in case of an unforeseen circumstance of death, it turns out to be the biggest blessing and support in that tough time.
4. Wealth Creation Is Long Term
Creating wealth is a long-term game. It almost never happens overnight. With a fixed salary income and demanding hours at work, it’s not particularly easy to take out extra time to build up alternate streams of income to save more.
Even if it comes down to investing in financial products to earn that extra money, continually researching about the investment options, tracking their market-linked performance becomes difficult and often gets missed out.
In light of this practical reality, term insurance is an easier way to save and leave behind money for the family after your demise without taking up a lot of strain during life or battling with financial risks.
5. Build an Emergency Backup
In a situation relating to the loss of a loved one, the family members are bound to go through a lot of emotional turmoil. Amidst that, if they have to deal with the burden of financial difficulties as well due to the loss of the main bread earner, it can get even harder for them to cope. In order to avoid such situations for the family, term plans are very helpful towards building a solid backup immediately.
6. Gain Tax Saving Benefits
In addition to all the above, another tangible benefit of term plans that shouldn’t be missed is that the premiums paid for the plans are eligible for tax deductions. This makes the case even stronger, as there are very limited options for salaried professionals to save on tax. This one helps to raise the disposable income, while reinvesting it for the family’s security, practically without any risk involved.
Every salaried individual must invest in term insurance and extend the financial security to their near and dear ones for the future. However, before buying one, research and compare term insurance plans available in the market in order to provide the best protection to your family.