term insurance

Getting Started with Your Career? Here’s Why You Need Term Insurance

by Lily White
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Starting your career is one of the most exciting times in anyone’s life. The road to financial freedom and not being dependent on your parents but rather providing for them is one of the most peaceful feelings. Moreover, it also gives you the freedom to plan your investments to build a secure life for yourself and that of your family. Therefore, it’s only obvious that most of us think of investing our money into various plans and financial instruments that are likely to give you the best returns on your investments in the future.

But, while you may invest in multiple plans, and schemes to better your chances of getting decent returns on your investment, there is one investment you absolutely need to make to ensure financial stability for yourself and your family. We are talking about term insurance plans which is one of the best investment decisions you can make.

While most of us may think of a term insurance policy as one that pays out only in case of the untimely demise of the policyholder, that is not true in the true sense, as additional riders and benefits ensure that the policy guarantees financial freedom even when one is left with no income due to a debilitating illness or other unforeseen circumstances.

Why do you need term insurance?

A term insurance policy provides guaranteed life cover in the form of a sum assured that’s paid out to the nominee (s) of the policyholder in case of untimely demise. It’s a pure life cover that offers the payout regardless of the market conditions, making it a safe investment to secure the financial future of one’s family unlike some of the other market-linked plans. Therefore, taking a term insurance policy is an absolute must for anyone with dependents. Ideally, you shouldn’t take one year term insurance and discontinue as the cover wanes off after a year’s time, but continue with the plan for as long as the policy permits to cover your dependents against exigencies.

Since we talked about additional benefits and riders that a term insurance policy offers, let’s look at a few of them to help you understand the importance of this policy and how it can help you cope with unforeseen situations in life.

Critical Illness Cover

While a health insurance policy takes care of hospitalization-related costs, it generally doesn’t offer any lump sum amount to take care of medical and household expenses while the insured is undergoing treatment and recovery. A critical illness can result in loss of income which can be detrimental financially and lead to more stress. A term insurance policy offers a lump sum payout in case of a critical illness that helps the policy holder’s family take care of immediate medical and household expenses.

Accidental Disability Benefit

If a policyholder is rendered disabled due to an accident, it can lead to a loss of income which in turn can make meeting expenses incredibly difficult. A term insurance policy may offer a rider that pays out a percentage of the sum assured as an accidental disability benefit to help the policyholder cope with the situation without the additional burden of financial stress.

Waiver of premium

In case the policyholder is faced with a loss of income due to an illness or accident, or any other factors as outlined within the policy document; all future premiums are waived off while the policy continues to provide life cover to the insured. This is a great benefit as one isn’t left without life cover if they are unable to pay the premiums.

A term insurance policy is an investment you should make early on in your career to get maximum coverage at the most reasonable premiums as they tend to rise as you age. There are a range of term insurance plans that are designed to offer maximum coverage at affordable premiums with all the additional benefits and riders we discussed so far.

So, if you are just starting out on your career, and thinking of making an investment, make a smarter choice, and invest in guaranteeing a safe financial future for yourself and your family!


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