COVID-19 has taught everyone around the world that life is uncertain and full of unpleasant surprises. You can never be too cautious or too prepared for such surprises that may come from anywhere.
If you are the primary, and most likely the only, bread-earner, it is your moral and financial obligation to safeguard the family's financial interests. You must ensure that you fully meet their financial needs even when you are no longer around.
A term life insurance plan is the most cost-effective way to ensure that at least it will meet your family's financial needs in case of an eventuality. With a term insurance plan in place, you can focus on other aspects of your financial planning – marriage, home, investments, children's future, and retirement.
It is impossible to put a price on the life of a loved one and more so on the life of the family's sole bread earner. But as a rule of thumb, live insurance coverage must be at least 15 to 20 times your current annual expenditure. A better coverage would be 15 to 20 times your current annual income.
With term plans, you get the following benefits:
- Low premiums
- Financial security for family
- The flexibility of cover, tenure, and premium frequency
- Tax benefits u/s 80C
- No brokerage or commission
- Benefit from riders