Has your financial situation improved with the changing inflation rates? Debating over the government policies will not change your financial situation, overnight. Itâ€™s best to begin reorganizing your finances so that you will not be looking down at a barren account, at the end of the month. Including a term insurance within your financial plan is the smartest decision to beat your upcoming financial woes. We take a brief look at the essential ways in which a term insurance can help you meet your financial woes.
Why should you take term insurance?
Till what age are you planning to work? What is the target amount you are planning to save up? How much of money should be kept aside for medical emergencies? Itâ€™s important to have these answers sorted out in the beginning of financial planning. The inclusion of term insurance within your financial plan provides coverage with the fixed rate, for a particular period of time.
Consider these questions that can give you answers to help you include term insurance to make financial sense:
Q: Whatâ€™s your lifestyle, and how can you improve it with term insurance?
A: In todayâ€™s world, inflationary trends are not the only reason why people have not planned for the future. Other reasons such as late marriage and the delay in planning for children are reasons enough to have term insurance. The inclusion for fixed payments for a fixed period of time can help you gain the relevant medical coverage, even if you have not planned for it.
Q: How can term insurance help you retire in peace?
A: Gone are the days, when saving-up on money in order to avail the best medical benefits at an old age were the only motivation to do so. In todayâ€™s world, term insurance is the easiest way to get ahead without planning for retirement. Use the savings from your hard-earned money to plan the ideal vacation in retirement and leave the medical payments to term insurance.
Q: Can term insurance help with medical emergencies?
A: It is possible to have a term insurance that undertakes the basic medical expenditure until retirement. Ensure that it does not lapse, so that you can avail of the facilities offered within the insurance policy. Imagine not having to pay for medical bills that burn a further hole in your pocket, at any stage of your life.
Q: Does it make sense to plan for term insurance at a young age?
A: One can take a term insurance cover at any age; it is the term of the insurance policy that matters. A short term cover at a young age can fall short of the important years of your life. For instance, if you intend to take a term insurance policy at the age of 20 years for a period of 20 years, then it is possible that your term insurance will end when you are 40 years old. Hence, you will not benefit from the term insurance policy in the finer years of your life.
Starting out with a term insurance policy ensures that you not only have begun financial planning but you have also ensured that your life goals are not limited. It is not rocket science to become a financially smart investor, in todayâ€™s world. Simple and timely allocations of money such as that towards term insurance can assure that your reach financial soundness, before critical moments in your life.
About HDFC Life
HDFC Life , one of India's leading private life insurance companies promoted by HDFC Ltd. & Standard Life Ltd., offers a range of individual and group insurance solutions. HDFC Life's product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health.