Term Insurance for Family – Check Features and Benefits

A term insurance plan is like a security that safeguards a family financially in the most unfortunate event of demise of the family head. Such unfortunate events are not something unusual and it can happen with anyone anytime.

Because life is unpredictable, no one can guarantee that any sudden or unfortunate event will never hit them. Hence, it is crucial for everyone to be prepared. When an unforeseen event hits the family in the form of loss or demise of the head earning member, it dismantles the entire family, especially in terms of finances. So, the best way to deal with it is to buy a term insurance plan. A term plan provides the basic financial protection to your dear ones in case of your sudden death. It secures the family and allows them financial independence to a great extent. Let us understand, in this post, about term insurance plans for families?

What do you Understand about Term Insurance for Family?

By term insurance for family, it means an insurance coverage for each member of the family. So, this is a type of coverage that offers protection to each and every family member during the policy tenure. Thus, in case there is an unfortunate incident like the demise of the policyholder during the term of the plan, the family receives a lump sum pay in the form of death benefit. This amount helps the family in taking care of the education of children, paying off loans, and in fulfilling other monetary requirements.  Such a policy keeps you worry free because you know that your family will be taken care of in case of any untoward situation.

Features of Family Term Insurance 

Below are some features of the family term insurance plans:

1. It supports family with pure life protection option :

The family term plans offer financial security to the family members of the insured in their absence so that they can take care of their monetary liabilities.

2. These plans are available at affordable premiums :

As compared to other kinds of life insurance plans, term plans are quite affordable. Further, consumers can compare plans and buy the best suitable policy as per their budget and requirements.

3. You can enjoy flexible term of policy :

These term plans are available with an extensive policy tenure. You can choose policy tenure between 5 to 40 years as per your need.

4. The sum assured received is lump sum:

The sum assured offered under the family term plans are good as compared to the premium paid by the insured on a yearly basis. This sum is good enough to secure their loved ones financially.

5. There are several types of plans available:

There is a wide amount of choice available when it comes to buying a family term plan. This allows the insured to pick the best policy as per their need and pocket.

6. You also get rider benefit:

Term plans allow the insured to avail added riders which is attached to the base plan. This is a lucrative way to enhance the base coverage and get added benefits. Some such riders include accidental death, disability, critical illness etc.

Benefits of Family Term Insurance

Here is a list of benefits that a family term insurance plan offers:

1. It allows financial security –

The first and the foremost benefit of a term plan is, of course, the financial security that it offers in the event of an unfortunate incident like death of the insured person

2. It provides comprehensive protection –

Along with offering coverage against death, a term plan also covers against terminal illness, accidental disability and so on

3. You can enhance protection with Life Stages –

With time the requirement of insurance changes. So, these plans allow the insured to make changes in their term plans as per the changes in their life by opting for options like Increasing Term Insurance etc.

4. You can avail tax exemptions –

Under the term plans, you can avail the option of tax benefit as per the income tax laws of the country

5. You can be at peace –

Finally, the peace of mind that you get by availing a life insurance policy is beyond words.

Can Housewives Avail Family Term Insurance Plans?

The term insurance plans for families allow the house wife to avail protection against sudden eventualities. A housewife is the most important person in the family as she maintains the equilibrium of the family. Hence, her absence can make a family go haywire. Thus, to support the family in case of any such incident, housewives should be covered with a term plan. This will help the family to have:

  • Security in the event of any uncertain incident by supporting the children and the spouse
  • Present enhances life cover to secure the children better. Both husband and wife can avail coverage for better benefits

How to Choose the Best Term Insurance Plans for families in India in 2023?

Below are some determinants that will help you in choosing a good term plan for family in 2023:

1. Decide the correct amount of coverage –

The right amount of coverage can be decided by assessing your income per year, your lifestyle, your expenses, the dependents you have, future loans or any monetary obligations etc. Just take care of these aspects and use a calculator to assess the life cover you would require

2.Look for a policy with flexible tenure –

You can choose plans that allow you to stay covered till 99 years or for your whole life. As per your requirement, you can choose to stay covered as long as you want. So, pick a tenure according to your need

3. Must check the claim settlement ratio of the insurer –

Considering the claim settlement ratio of an insurance company is the most important thing while choosing a family floater term insurance. This allows the insured to know the percentage of claims settled by the insurer as compared to the claims received by them during a policy year

4. Look for the riders offered with the plan –

Add-On riders are important to enhance the coverage of your policy. There are many insurers who allow additional riders with their term plans. So, if you want to further your policy coverage, look for a term plan that provide family term insurance rider facility

5. Read the policy document thoroughly –

Many people make the mistake of not reading the policy document thoroughly. However, it is very important to read the document well to get better understanding of the policy and to avoid any miscommunication

6. Compare term plans –

Once you assess a policy on all the above aspects, you must do a thorough research and comparison of plans before choosing the one that matches your expectations

Why does the Solo Earning member of the family need a Term Insurance Plan?

If you are the sole earning person in the family, your absence can make the family miserable in terms of finances. Every monetary aspect will come to a stand-still without proper financial support.  Be it the education of children, the daily household needs, the rent, the loans and more. Hence, the head earning member should be covered under a term plan. A family term life insurance will allow the family to avail some of the below benefits in his/her absence:

  • Lump sum amount as death benefit, or
  • The amount can be paid as regular income, or
  • A portion of the pay is offered as lump sum and rest as regular income for life

Family life insurance is a policy that covers different members of your family.

Return on premium term insurance plans offer death benefits as well as maturity benefits if the policyholder outlives the policy term.

Term Insurance plans allow the family of the insured to have a great financial cushion during the most unfortunate time in their lives. Hence, they are worthwhile.

Author Bio

Paybima Team

Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

Choose from India’s top insurers

Latest Post

Let’s be honest – life insurance planning isn’t exactly someone’s weekend hobby. It is the financial equivalent of flossing: we understand its importance, but we tend to put it off. But somewhere between balancing work and life, you might realise you need to have a solid plan in place – just in case.

See nowSee now

If you think of life insurance, chances are you are picturing something people buy in their 30s or 40s. But what if you are 65 or older and just getting started? The good news is that you are never too late. Whether you are thinking of easing the financial burden on your family, covering final expenses, or simply leaving behind a legacy, there are life insurance options tailored just for you. 

This article will be a guide to life insurance for senior citizens above 65 years, explaining why it is important, the type of insurance options, and how to get the right policy for you. 
 

See nowSee now

Health insurance plans are purchased with the hope of medical protection in times of need. However, sometimes it ends up being a source of surprise and disappointment. This mostly happens when people rush to buy health insurance plans, often overlooking essential aspects. Ignoring waiting period clauses, misunderstanding exclusions, and being unaware of sub-limits can lead to unwanted problems in the future.

 

See nowSee now

If you are looking at investment policies offering INR 1 Crore in 5 years, we talk about some excellent plans in this post to help you choose the best one and reach your goal. However, it is important not to get swayed. Doing proper research and taking advice from financial or insurance advisors is important. Learn about such investment plan in this post.

 

See nowSee now

The last few years have made it very clear that having health insurance is essential for everyone. Whether you are a young professional or a senior citizen, are single or have a family to support, health insurance cannot be ignored. Keeping this in mind, health insurance companies offer comprehensive plans that suit people with varied insurance needs. 
 

See nowSee now