What is the importance of buying term insurance in 2021?
The COVID-19 impact has created massive awareness among people in India to buy a term plan. The main reason for this is the unforeseen happenings that many people came across in the last two years due to Corona. Thousands of people lost their lives, leaving their loved ones without any secured future. Out of which, those who owned health and term insurance plans escaped from the substantial financial risk, but those without such plans got trapped.
Shankar, a 45 years old middle-aged man, is in a responsible position to secure his family. However, the impact of COVID-19 has also worried him a lot after seeing a few casualties around him in his area. Until then, he had no clear idea about why to buy term insurance and its importance. Although Shankar was making small savings for his children to secure their future, the rising inflation rate is a matter of concern regarding how much savings could be sufficient for his family in case of any unforeseen happening to his life. It is not only Shankar, but many people are now in this critical situation, not knowing what to do.
If you have not bought your term plans until now and still have no clear idea about why you need to buy the term insurance plan in 2021, then here are some valid points to emphasize the same;
Importance of buying term insurance in 2021
- Tight Budget: No doubt, this COVID-19 lockdown has impacted the earnings of many people. This has hugely affected the middle-income group of people with a tight budget, not knowing how to make good savings for their families. At the same time, there should be some financial security created. If you have a term insurance plan with a long tenure period of 30 years or over, then you are secured, no matter how tight your budget is. This is because the premium you are going to pay will be minimal and within your affordability.
- Low Income: This is another big challenge most individuals are facing in 2021. Although you had a good income until 2019, after the corona impact, many people lost their job and are forced to live in a situation accepting a low wage or salary to survive and run their families. However, a low income cannot stop you from securing your family financially. In order to give complete protection to your family, you are now in a position to take a term insurance plan that ensures financial security during any unforeseen situation.
- New career or business venture: Regardless of your age, if you have entered into a new job or a business venture, and have financial insecurity, even then, you are in the position to buy a term insurance plan to secure your family. An unforeseen situation can happen to anyone at any time. This is absolutely unpredictable in a pandemic time like COVID-19. Therefore, to keep your family financially secured from any unforeseen situations after your absence, you should certainly think of buying term insurance online.
- Loans and Debts: Leaving a family with debt and loans can unimaginably affect their entire life and future. At the same time, to meet some expenses, a family is forced to get loans from banks. This will ultimately push them into debt, which might lead to a substantial financial loss and reputation in society when not paid on time. In order to avoid such a situation, an individual with the responsibility of safeguarding his family should consider buying a term plan, which will help to meet out the debts or loans in case of his unforeseen loss.
- Complete Financial Security: Suppose you are the only earning member of the family, and you have the responsibility of securing them throughout their life. In that case, you are in a critical situation to consider creating financial security for them in 2021. Furthermore, the uncertainty of life has increased from 2019 with the Corona pandemic. Anyone’s life cannot be guaranteed to survive long as you think. But at the same time, if you strongly desire to give financial protection to your family in your absence but within your reasonable limits, then it is now the right time to consider buying a term insurance plan. This is also an inexpensive method of creating sound financial security for your dependents after your absence.
- Term Insurance with Riders: Today, most term insurance plans come with rider benefits. These riders can increase the value of your term plan as well. This is crucial in 2021 with the impact of the Corona pandemic. Therefore, never hesitate anymore; simply approach your insurance company and try to choose a perfect term plan that can give your family complete financial security as you desire.
Unlike the traditional term plans, today, you can find several new term plans that are flexible to buy. These plans come with a low premium and high sum assured. Moreover, they are also effective with plenty of benefits, including tax, riders, critical illness benefits, and much more. Finally, these plans are easy to understand. Therefore, you may not require an insurance agent to brief you about the features of the plans.
Indeed, you can easily buy them online by reading the terms and conditions, which are simple to understand, and other details. Buying term insurance online is very helpful as it helps you compare the policies and insurance companies easily. Moreover, the availability of a term insurance calculator is another major highlight to emphasize. Therefore, if you have not yet bought your term life plan, this is the right time to react. Buy your term plan 2021 right away and start securing your family from any unforeseen situations.