Reality is thatterm insurance policies in India are not only inexpensive and uncomplicated but also offer more benefits to the
policyholder than most other forms of life insurance. Given the fact that term life insurance is low-cost, it is aptly suited for young individuals and couples who don't save up a lot of extra cash each month. Even if you are in your 40s or 50s, you can purchase term life insurance; however, you would have to pay slightly more premium than say, a 25-year old.
Which brings us to the question at hand: what could happen if you don’t buy term insurance while you are earning? First, the size of premium that you pay depends upon your age, sex, health status, duration of policy coverage and the amount of death benefits. Therefore, term insurance becomes increasingly expensive to purchase and renew as you get older. Also, there are other severe consequences of not having term insurance, some of which are explained below.
1. Leaving Your Loved Ones in a Financial Crisis
You might think that buying term insurance is a waste of your money but considers this: if some were to happen to you, your family would have no one to look up to for financial support. While your sudden demise would be devastating, the financial crisis would only make matters worse.
Studies show that road accidents alone are responsible for
approximately 400 lives being lost every single day. Further, there are various natural and human-made causes, which might hinder your ability to support your family.
To safeguard your loved ones; therefore, buying a term plan would be your best bet as it will help you provide a comprehensive life cover to your family at meagre premium rates.
2. Leaving Your Family Burdened with Debt
In India, it is common for us to take financial loans from the banks and fulfil our desires. Whether we are buying a house, purchasing a new car or financing our child’s higher education, the bank approved loanseasily help us raise the required amount.
However, if something were to happen to you, it is your family who would be repeatedly harassed by the recovery agents for the outstanding debts. You need to make necessary arrangements that no one would hassle your family for any indebtedness after your demise. And term insurance is precisely the instrument that can help your family in repaying their debts
These days, many insurers such as Future Generali offer benefits such as a lump sum payment of the Sum Assured under the term plan after the death of the policyholder. So that your family can repay any outstanding debts with the term plan amount while using the remaining amount to fulfil their immediate needs.
3. Leaving Your Child’s Future Insecure
As parents, it is our dream to provide our children with the best possible intermediate and higher education, so that they can have a bright future ahead. In recent years; however, the cost of education has undergone revolutionary changes. While globalisation has much improved the quality of education here, it has also resulted in
raising the cost of higher education to unprecedented heights.
These days, the tuition fees of schools have become far too expensive to bear, especially for salaried parents. At this point, you would have to think about whether have you done enough to secure your child’s future? What if your spouse becomes incapable of funding their education after your sudden demise?