Term Insurance for Family – Check Features and Benefits

581

6 min read

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?

GRP Plan from PayBima

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

Popular General Insurance Companies India, 2023

Conclusion

A term plan makes the family strong in terms of finance and hence it benefits a family in the long run. The process of buying a family term plan is similar to buying any insurance policy and can be done in both online and offline ways.

Related Articles

Found this post informational?

Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit PayBima to Buy Insurance Online.

Try PayBima Calculators –

Also, Check out the PayBima Guide and Glossary section –

FAQs: Term Insurance for Family

What is family term life insurance?

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

Which term plan gives returns?

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

Is the term plan good or bad?

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.

Other Term Insurance Products

Jun 16, 2023
SHARE THIS ON
Author Bio
Author Image

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.

Related Blogs

Would love to hear from you

Share your candid feedback. Your email address won’t be published, we promise!

All fields are required

Find your suitable insurance plan

Speak to our advisor

Latest Posts

Mahindra Insurance Brokers Limited (A Mahindra Group Company) - Unit-202, A-Wing, 2nd Floor, Amiti Building, Agastya Corporate Park, Kamani Junction, LBS Marg, Kurla West, Mumbai - 400070. Tel: +91 22 66423800

Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).

Insurance is the subject matter of solicitation.

For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.

Copyright © 2024 Mahindra Insurance Brokers. All Right Reserved.

Get A Call Back
Get A Call Back