The Importance of Term Life Insurance: Protecting Your Loved Ones Financially

Understanding the importance of financial freedom & taking care of building enough wealth for your family will help you reach stupendous financial goals. If you are the sole breadwinner in your family, you need to figure out your finances well. Term life insurance is a good bet to have in this fast-paced world. It helps you save & create a corpus for your family’s future. A term life insurance can have a high corpus & its payout can be either lumpsum or periodical. 

As you grow old, you may not have the physical or mental strength to hustle as much as you do at a young age. Now, in order to deal with that, you can create wealth that multiplies & purchase insurance policies that protect your wealth from eroding. 

Let us understand what a term life insurance policy is: 

A term life insurance policy is a plan that provides your beneficiaries with a lump sum or periodic fund upon your unfortunate event. This policy does not pay out on maturity. It will only payout upon your absence from your beneficiary’s life. Term life insurance is a policy that protects your family’s financial prospects at premium rates, which are affordable by most people. 

Availing a term life insurance is of utmost importance. Let us find go through 5 reasons why it is essential: 

  1. Financial Security: A term life insurance policy creates a corpus that is for your family & its well-being upon your unfortunate demise. You can curate the plan to offer you the returns that your family may need in order to maintain a particular level of lifestyle
  2. Affordable Premiums: The premiums for a term life insurance policy are reasonable. Depending on the coverage you seek, your bonus can be around Rs. 14000 per year, excluding taxes for SBI Life Insurance Company Ltd eShield Next, wherein your minimum coverage will be Rs. 75 lakhs. 
  3. Rider Benefits: You can add riders to your term life insurance policy. Riders are add-ons available to most insurance policies, which enhance the value you gain from the policy by paying an extra sum. The riders can be for an accidental demise benefit, accident total, or permanent disability rider. 
  4. Long-term coverage: The term life insurance, as the name goes, provides you with extended time coverage. Usually, with these policies, you are insured for a period between 5 years & 40 years, which can be extended by a whole life insurance policy. With SBI Life Insurance Company Ltd eShield Next, you can get covered up to 85 years of age or your entire life i.e. 100 years, depending on the policy you choose. 
  5. Lower rejection of claims: It is imperative to provide your insurance service provider with accurate details about your health & the other policy-related information they need. This helps them determine your trust factor & know about your risk as a policyholder. 

Taking care of all these factors, you will be able to avail of a term life insurance policy with ease & secure your family’s future.