Life Needs a Backup Plan - Here's How Term Insurance Helps
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Life Needs a Backup Plan - Here’s How Term Insurance Helps
“We can’t plan life. All we can do is be available for it.” Great words of wisdom from the famous American actress and singer Lauryn Hill and something we could all relate with easily. While life can continue to be as unpredictable as it gets, we still should make sure that we are doing everything possible to protect ourselves from the unforeseen eventualities in life.
For instance we do everything an ideal investor should be doing to secure their future including savings and investments in a variety of forms. That of course is your ideal plan for the future, but what about a backup plan?
The Need for an Alternative Plan
Your regular savings and investment initiatives would help you plan for the long term or even near term financial objectives. These can include all the financial instruments you choose to make investments in such as bank deposits, equities, government investment schemes, etc. I choose to call this the “ideal plan” where you are set to reap the benefits of your investments at a predetermined time in the future. This is basically the time when your investments mature.
But imagine a scenario where something untoward happens and you are not around to complete your “ideal plan.” And the capital you have invested so far is nowhere near what you would ideally require to fund your dependant’s requirements.
This is where a “backup plan” comes into the picture - a fool proof plan that’ll help you plan for any and all unpredictable events in your life.
Use Term Insurance as Your Backup Plan
Term insurance plans act as an excellent medium to create an alternative financial plan. To be looked at more from the perspective of risk cover rather than pure play investment, term insurance plans are easy to subscribe for and are relatively cheap in comparison to other insurance products.
The biggest advantage of a term insurance plan is the amount of insurance cover you get at fairly low prices. For instance; HDFC Click 2 Protect, which is a popular term insurance plan, offers a 50-lakh insurance cover for as low as Rs5000/- per annum. Now imagine the kind of financial security you stand to gain with something as little as a few hundred bucks per month. This makes term insurance plans the perfect contingency tool to protect your family’s immediate financial needs.
Why Go for Online Term Insurance?
While it’s fairly easy to subscribe for both offline (via agents/distributors) and online term plans, the online route offers individuals an easy and convenient way to buy insurance. Some of the major advantages of buying a term plan directly from an insurance company’s website include:
- Cheaper premiums compared to buying the policy offline via an agent.
- Easy application process. It’s fairly easy to apply and in most cases the process is entirely executed online.
- There’s no cumbersome documentation and paperwork required unless you fall in the high-risk category.
- There’s usually no need for a medical check-up unless you fall in the high-risk category.
- You only get what you want. You have the freedom to choose the coverage as per your requirements and there’s no risk of misselling or scope for other fraudulent practices.
As a closing note, term insurance plans are the perfect way to backup and secure your investment portfolio against exigencies. Life does indeed need a backup plan no matter how prepared you are.
HDFC Life, one of India's leading private life insurance companies promoted by HDFC Ltd. & Standard Life Ltd., offers a range of individual and group insurance solutions. HDFC Life's product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health.
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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.
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