Term Insurance: This is What Selfless Act of Love Really Looks Like

In 2018, when little Saksham was born to proud parents − 29-year old Vivek and 24-year Sakshi − they were ecstatic to hold the little bundle of joy in their arms. Vivek wanted to give his child a life he truly deserves. And on his first birthday, therefore, Saksham received a small gift from his parents that would take care of his financial needs even if his parents weren’t around.

Vivek bought an online term insurance worth Rs 1 crore by paying an annual premium of less than Rs. 12,000. Most financial experts would laud Vivek for the investment decision as it would serve a vital purpose in securing his family’s financial future to perfection.

In a world full of risks and unforeseen vulnerabilities, it is imprudent to believe that bad things would only happen to others. Instead, it is advisable to be protected against the vagaries of life at all times.

Vivek imagined the emotional and financial hardships his family would have to endure, in case he was no longer around. As a selfless act of love, therefore, Vivek made sure that his wife and son would never have to depend on anyone else, should something happen to him and he won’t be there to celebrate important life milestones together with his family.  

Lessons from an Unfortunate Tragedy

What also prompted Vivek to purchase term plan insurance was the situation his friend Rajiv’s family after his unfortunate demise in a road accident. Rajiv’s daughter Simran was just three years old at that time. Rajiv had not bought a term plan insurance cover and had kept postponing the decision for another day. As a result, all he left for his family were some meagre provident fund savings.

Ever since Rajiv’s demise, his wife Preeti, who worked as an office assistant now, has been struggling to balance her life with the financial responsibilities of being a single parent. Not only did she have to deal with the emotional trauma of losing her partner, but she also had to endure financial hardships to make sure that their daughter had the best possible education and lifestyle.

However, if Rajiv had purchased a term cover of even Rs. 50 lakh, Preeti would have received the entire amount tax-free. The corpus could have easily fetched her a bank deposit interest of approximately Rs. 3 lakh per financial year in most reputable banks.

So, a simple investment of Rs. 7,000 by Rajiv into a term plan even a year before he passed away, could have given his family up to 700-times return. Sadly, though Rajiv didn’t have any such policy, so there was no financial gain. Albeit, his family, had to bear an insurmountable monetary hardship.

Term plans Are the Perfect Way to Showcase Your Selfless Love

As couples’ step from the role of being ‘wife and husband’ into a more important one of ‘parents’, their financial responsibilities grow exponentially. This is because bringing up a child requires vast sums of money for expenses such as education, lifestyle and marriage.

Purchasing a term plan insurance; therefore, it is a simple solution to ensure that your child achieves his or her life goals, even if you are not there to take care of their needs.  

The difference between term plan & whole life plan is that term policy is the pure life insurance products that doesn’t have a maturity value, unlike whole life plans. Therefore, there would be no returns or maturity corpus for you to show after you survive the policy term.

However, the small premium that you pay under a term plan will culminate into a significant corpus in the form of the death benefit to your family in case of your untimely demise within the policy term. So, in case of an eventuality when you are not there to take care of your loved ones, your family is financially taken care of by term plan insurance.

Give Your Family the Greatest Gift of All: Financial Independence

The transition from a husband to a parent is perhaps the most significant life change for an individual. From the moment you welcome the newborn into the world, the spending begins. And as your child grows up, his or her expenses rise. Needless to say, a sense of responsibility pervades into your mind, and you begin to think about putting up a savings mechanism in place, for your child’s long-term needs.  

Along with a large sum assured amount, term insurance plans from reputable insurers such as Max Life Insurance offer several other benefits such as premium waiver, tax benefits under Section 80C and 10(10D) of the Income Tax Act, rider protection and hassle-free claim settlement.

Therefore, there is no point in delaying your term plan purchase. The sooner you purchase a term life cover, the lesser premium you will have to pay. Moreover, you will attain peace of mind, knowing that your family is secure from any unforeseen vulnerabilities. You may not be there to reap the benefit of the investment or see your family achieve important milestones in life. With a term plan; however, you would make sure that you continue to remain a source of happiness and inspiration for your wife, children or other dependents even after your demise.