Studies have shown that the best time to avail a term life insurance plan is the month of April. In today’s fast and hectic World, a term life insurance plan is a must. Uncertainty is all around and it’s foolish to step out of your home without a term life insurance plan.
So what is a term life insurance plan? You have to pay a premium and you get cover (protection) for a fixed time period, called tenure of the term insurance plan. If a policyholder dies within the term of the plan, nominees get the sum assured also called the death benefits. Nominees can pay back car loans and home loans with the death benefit. If you survive the term of the plan, you get nothing.
While everyone knows the importance of a term life insurance plan, the big question is why avail term life insurance in April? Want to know more on term life insurance? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service.IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
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If you don’t have life insurance, get a term life insurance plan at the earliest. Now to an interesting question? Why avail term life insurance in April? April is the start of the financial year and it’s the time you get a bonus or a pay hike.
You won’t feel the pinch of paying the premium on a term life insurance plan and anyway, premiums are quite low on a term life insurance plan. If you have already availed a term life insurance plan, consider additional riders like accidental disability rider or critical illness rider for this plan.
But is this the only reason, April is the best time to avail a term life insurance plan? Many citizens avail life insurance in the last 3 months of the financial year (January-March), just to save tax. Most of the citizens availed Endowment life insurance plans, as high premiums mean a big tax saving.
So why avail term life insurance in April? Simple….The insurer gives you a wider coverage and you enjoy discounts on the plan.
1. How much term life Insurance is required?
Things are very costly, today. Inflation is eating up all your money. You earn a handsome salary and yet, struggle to make ends meet. How can you expect your family to pay such high bills in your absence?
Rule of thumb: Make sure to avail term life insurance with a sum assured, which is 10 to 15 times your annual income. If there are any loans to repay, make a note of this too.
Your family has goals and aspirations. Your son might want to be a doctor. Your daughter a computer engineer. Money must not come in the way of your family’s goals, even if you are not around. You need to make sure your family is able to maintain a lifestyle they currently enjoy.
Rule of thumb: Choose a sum assured in your term insurance plan = An amount which if invested, gives a regular income to your family, so that they are able to maintain a lifestyle they currently enjoy.
3. Term life insurance takes care of you
Avail riders for your term life insurance plan. You might have to pay a slightly higher premium for these riders, but they are worth every rupee. Avail the accidental disability rider which gives you money if you meet with an accident and can’t work for a few months. Make sure to avail the critical illness rider, which gives you money, if diagnosed with a critical illness. Critical illnesses are money killers.
Choose a term insurance plan which is competitively priced, but remember, Cheap does not mean best. Be Wise, Get Rich.
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