Why should one get a term insurance

Why should one get a term insurance?
What is term insurance?
It is one of the simplest forms of life insurance, where an individual pays a fixed premium and in case of
death, the family receives a lump sum payment from the life insurer.
Why term insurance?
It ensures that the family is not left financially vulnerable in case something happens to the earning
member.
What are the benefits ?
Term Insurance Plans In Indiathat provides financial protection against critical illness enables the family
to continue with their regular life without an additional financial burden. Term Insurance Plans In
Indiaare now cover accidental death, critical illness and terminal illness, along with providing a life
cover. These days, life insurers offer nominees the option of receiving the claim amount as a regular
income.

What is the ideal cover?
Consider a 30-year-old married male, with a child, who has a monthly income of Rs25,000 and an
outstanding home loan of Rs10,00,000. If something were to happen to him, the family needs to pay off
the loan and continue with their lives as well. The ideal cover for this individual, to enable the family pay
off the loan as well as sustain, would be calculated as: Rs 25,000 x 12 months x 28 years + Rs 10,00,000 =
Rs 94,00,000. He should continue with this cover till his retirement.
What are the points to be considered?
Buy early: The cost of buying insurance increases with age. The earlier one buys, the lesser one pays.
Claims settlement ratio: Ensure that the insurer has a consistently high claim settlement ratio.

Truthful disclosure: Disclose all information about yourself, especially medical information, truthfully.
This will facilitate a smooth claim settlement.
Medical tests: A medical condition if revealed, may lead to a higher premium. Don’t change your mind.
This just means that you need financial security even more.

Source: What are the benefits ?
Having a Term Insurance Plans In India that provides financial protection against critical illness enables
the family to continue with their regular life without an additional financial burden. Term plans are now
cover accidental death, critical illness and terminal illness, along with providing a life cover. These days,
life insurers offer nominees the option of receiving the claim amount as a regular income.
What is the ideal cover?
Consider a 30-year-old married male, with a child, who has a monthly income of Rs25,000 and an
outstanding home loan of Rs10,00,000. If something were to happen to him, the family needs to pay off
the loan and continue with their lives as well. The ideal cover for this individual, to enable the family pay
off the loan as well as sustain, would be calculated as: Rs 25,000 x 12 months x 28 years + Rs 10,00,000 =
Rs 94,00,000. He should continue with this cover till his retirement.
Source: http://indianexpress.com/article/business/business-others/why-should-one-get-a-term-
insurance-2754149/