There is a famous saying on life insurance “If a child, a spouse, a life partner, or a parent depends on you and your income, you need life insurance”. There are no words to describe the need for a term life insurance plan. You must never step out of your door, without a term life insurance plan. But if you die, why do you need money? You might not need money, but your family lives after you. Would you want your family, struggle to make ends meet?
So what is a term life insurance plan? You pay a fixed sum of money called a premium, to a life insurer and avail a term life insurance plan. You pay this amount for a fixed time period called tenure or term of the policy. If you die before the tenure of the plan, the life insurer pays an amount called the sum assured (death benefit) to your spouse and children (nominees of the term life plan). If you survive the term of the life insurance plan, you get nothing. Yes, term life insurance is very necessary, but do you need a term life plan after 50?
It is widely believed that when you are 50, your children would have completed their studies. They would be working. They would no longer depend on you for their livelihood. But what if your children are still young? You would need to avail a term life insurance plan, even when you are 50 years of age. Today marriages at a later age are quite common. This means kids at a late age. If you are 50 and your kids are still studying, you would definitely need a term life insurance plan.
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You are 50. You should have sufficient savings and investments, so that your family can lead a high quality of life, even in your absence? But what if you are not confident that your family can enjoy the same quality of life they currently lead, in your absence. You feel your savings and investments would not be enough for your family, in case of your unexpected demise. Would you want your spouse and children to be dependent on someone else, in case you are not around to provide for them? Yes, you need a term life insurance plan even at 50. A term life insurance plan makes sure that even if you are not around, you leave behind a safety net for your loved ones. Your spouse and children will remember you in this life and the next.
If you have a loan to repay, then you need a term life insurance plan, even at 50. You have availed a home loan when you were in your early 40’s. Banks allow you to stretch the repayments on your home loan, even till you are 60. If you have availed a home loan in your 40’s, chances are your home loan repayments could stretch till the time you are 60. You are just 50 and you have maybe 10 years to go, before you pay back your home loan. Could you leave this home loan behind for your wife and children to repay? You need to avail a term life insurance plan even if you are 50, so that the life insurer settles your home loan in case of your untimely demise. Your family is not burdened with the home loan.
Remember: At this age a term life insurance plan, can cost a lot of money. You would have to pay a high premium, if you avail a term life insurance plan at 50. But if it is necessary, you have no choice but to avail a term life insurance plan, even at 50. Would it not be better to avail a term life insurance plan when you are young?
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