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Should You Invest In A Long Term Insurance Product?

Published On Sep 28, 2021

Term life insurance is a pure form of protection for your loved ones. This type of insurance covers your financial obligations if the breadwinner passes away unexpectedly. In other words, if the life assured dies prematurely during the policy's term, the nominee will be paid the entire sum assured. There is no maturity benefit available if the Life assured lives to the end of the policy term. A term insurance policy's main goal is to provide financial security for your dependents. As a result, it's crucial that you make sure the policy's term is long enough. Read on to learn about some more reasons why you should invest in a long term insurance plan.

Should You Invest In A Long Term Insurance Plan?

Here are some of the reasons why you should invest in a long term insurance product.

1. Loan and Debt Repayment

When you die, your debts become the responsibility of your family. To avoid putting your loved ones in this situation, you should make sure you have adequate insurance coverage. The first step is to write down your financial obligations. It can cover everything from your child's education to his or her marriage to your own debts. Secondly, you can calculate the amount of time you'll need to complete this task. Your EMIs are almost certainly for the duration of your job; therefore, you will have liabilities till you retire. Term life insurance might assist your family in paying off your debts by replacing your earned income until your family has saved enough money. So, based on how much debt you want to cover, you can determine the duration of your life insurance term.

Must Read: Advantages And Limitations Of Term Insurance

2. Financial Security for a Longer Time

The family members, especially salaried class households who are fully reliant on one source of income, may suffer the most serious consequences of not having life insurance. Primary breadwinners should consider a policy tenure of at least 30-40 years because if your family relies on your income for financial security, you'll want a term that lasts until he or she reaches retirement age. Life insurance proceeds can help your family in maintaining their current lifestyle.

3. Secure Your Child’s Future

Every parent desires is to send their children to one of the country's finest schools to have a successful future. Regardless of the costs and expenses, any parent will go to great lengths to ensure that their child has a good life. Have you ever considered how precarious your child's future would be if you are no longer able to support his or her education? Again, the ideal solution is life insurance, which will cover all of your financial demands even if you are not present.

Take Away

One of the most common demographic shifts these days is that people prefer to marry late in life and, at the same time, couples have kids late. As a result, by the time they reach 50, the chances are that their children are still in school and may require financial support. As a result, purchasing term insurance at least until the age of 60, i.e. the retirement age, or even longer, is a prudent move.

Also Read: Term Insurance Benefits

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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