Term Insurance Plan: A Must-Have In The Financial Planning Checklist For Newlyweds
Updated On Oct 04, 2021
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Marriage is a new and exciting stage in one's life. It's a time when a couple works together to realise their ambitions and dreams. However, it's never too early to plan for rainy days, especially if you're starting a new life with your spouse. The first year of marriage is the greatest time to start building a solid financial foundation with your partner. While couples may believe they have lots of time to straighten out their finances, the truth is that the sooner you begin, the more equipped you will be for life's unexpected hurdles. Please continue reading to learn about some reasons that highlight the necessity of a term insurance plan for a young married couple.
Why is a Term Insurance Plan A Must-Have in a Newlyweds’s Financial Planning Checklist?
Here are some of the benefits of a term insurance plan for a newlywed couple.
Premiums for term plans are lower than other life insurance products. Moreover , in most situations, the death benefit received by the nominee is substantial. Therefore, a term insurance plan, unlike other insurance plans, provides you with more coverage for a lesser price, making it the ideal protection plan for securing the future of your new spouse.
The financial consequences of a sudden accident that results in incapacitation or death can be devastating to a person's immediate dependents. Term insurance has played an important role in providing financial security to policyholders and their families over the years by providing a variety of benefits. In the event that the policyholder dies, the sum promised is paid out to the policyholder's family and spouse which ensures their financial protection in such difficult times.
Now, two paychecks support your family's lifestyle. This combined income is used to determine your needs and priorities. You can even have debts and liabilities that require two salaries to repay. Naturally, you do not want one partner's unexpected death to have an impact on the family's lifestyle. One approach to ensure that your family's current quality of living is maintained in the future is to purchase a term insurance policy that will cover your family's needs.
A rider benefit on your term insurance policy might help protect you against specific risks like critical illness and accidental disabilities. You can choose from a variety of riders that can be added to your policy to protect you against certain risks, depending on your needs. If any of the insured risks occur, you will receive an additional sum assured as an addition to the premium. By appropriately planning for such emergencies, you can rest assured that your family will be protected from any loss of income resulting from unforeseen events.
Even if both you and your partner work, there are several strong reasons to choose term insurance, as we've shown. It ensures that you have covered every possibility and that your loved ones are well cared for every step of the way, even if you are not present to provide for them. A well-planned term insurance policy not only saves you money on taxes, but it also ensures that your family has the resources they need to live comfortably and fulfil their objectives. With this stress removed from your mind, you can both focus on thriving in your life and careers, content with the fact that your family's financial future is secure.
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.