Life Stage Benefit: Why should you consider life stage benefit when choosing a term plan in 2023 India


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It is very important to know what constitutes life stage benefit and why you should take it when you are buying a term life insurance policy.

A term life plan is supposed to keep you safe from all that could go wrong in your life. It can take care of the needs that your family may have should you die too early in life. Such a policy offers a sum assured to your survivors in case of your death within the policy coverage period and they can use this money to meet the different expenses that they may have in life.

Normally when you are buying these policies you have to calculate how much money would make sense in terms of the sum assured.

This is where the knowledge of life stage benefit in term insurance could turn out to be beneficial for you as you would find out later on in this piece. Normally, when you are making these calculations you have to think of all that you are responsible for right now. You have to be meticulous in calculating how much your family could need in the short term and the long term in case of your sudden demise. You need to make sure that you get that money from the sum assured that your term plan offers you.

What is a Life Stage Benefit Option in Term Insurance Plan?

As far as a term life insurance policy goes, the concept of life stage benefit implies that one size is not suitable for all. This means that the sum that was sufficient when you bought the policy cannot be considered so at a later stage in your life. So, this particular benefit is supposed to add a degree of flexibility to your term life insurance plan. This makes sure that it is capable of keeping up with the growing needs that you may have in life. This is a unique feature that enables your life insurance policy to adapt to your life goals.

The main way in which this is done is by increasing the sum assured that is guaranteed by the policy – this is done at all the important stages of your life. So, if you know what life insurance is you would acknowledge that this is indeed beneficial for you. Apart from that, having this feature in this policy implies that you do not have to pay a high premium to get the benefit that we are talking about over here.

How do Your Insurance Needs Change at Different Stage in Life?

If you know life insurance meaning you would also understand that your needs in this case changes with time. Now, these policies are supposed to cover both your short-term and long-term goals. As time passes, the responsibilities on you only increase. This also requires more money than your near-term goals would necessitate – they are much smaller, in that sense. The coverage that you need from your life insurance policy for the bigger goals is usually a lot higher. The scenario always changes and so the amount you had chosen when you bought the policy becomes insufficient a few years down the line.

Let us assume that you bought a term insurance plan when you started working as a fresher. Now that you know what life stage benefit option in term insurance isyou would know that the sum assured you had opted for at that time would no longer be of much use a few years down the line. In the initial stages of the policy coverage, the money would be just about good enough for you. With time, you would settle down in your job and in life – now you would want to add assets to your life.

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You would want to buy a new house and get married. Soon enough you would have children and you would want to take the best care that you can of them. You would have to educate them as well. After a few years, you would have to spend more money for their higher education. So, as you can see for yourself, the sum assured that you chose when you bought the policy would not be of much use later on. However, with the help of life stage benefit in term insurance, you would be able to accommodate all these goals with consummate ease.

You can easily see how your needs as an individual are changing with time. The best way to keep up with this would be to opt for life stage benefit in term insurance.

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Why Should you Opt for Life Stage Benefit in A Term Plan?

The thing is that you cannot keep buying a new policy every time some new need comes up in your life, can you? It is just not feasible from an economic point of view. So, if you want to save yourself the trouble of having to buy a new policy at a later – and crucial – stage of your life it is better that you go for the life stage benefit.

When you have life stage benefit in term insurance your insurance coverage would increase at a certain rate at the onset of every crucial stage in your life. Obviously, this would be done depending on your needs. This means that the sum assured by the policy would increase at definite intervals based on your needs. However, you need to be prudent in these cases.

So, when you are buying such a policy, make sure it has provisions for the likes of life stage benefit in term insurance. As you would have understood already, with such a feature you would be able to offer far better financial security to your loved ones in your absence. One of the best things about this benefit is that even when you opt for it the premium would still be affordable as it normally is with the term policies.

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FAQs on Life Stage Benefit

What is a life stage benefit?

A life stage benefit is a type of insurance benefit that provides financial support during specific stages of life, such as marriage, childbirth, and retirement. These benefits are usually offered by employers as part of an employee benefits package.

What are the common life stage benefits?

Common life stage benefits include maternity and paternity leave, childcare assistance, health and wellness programs, educational assistance, and retirement benefits. Some employers may also offer benefits such as adoption assistance, eldercare support, and sabbaticals.

How do life stage benefits help employees?

Life stage benefits help employees manage the challenges and expenses that come with different stages of life. For example, maternity and paternity leave allow new parents to take time off work to care for their newborns without losing income, while retirement benefits help ensure financial security in later years.

Can life stage benefits be customized to suit different employees?

Yes, many employers offer customizable life stage benefits that can be tailored to meet the needs of different employees. For example, an employee who is planning to start a family may opt for a higher level of maternity and paternity leave, while an employee who is nearing retirement may choose to increase their contributions to a retirement savings plan.

How do life stage benefits impact employee satisfaction and retention?

Offering life stage benefits can help improve employee satisfaction and retention by demonstrating that an employer is invested in the well-being of their employees. By providing support during different stages of life, employers can also help reduce stress and anxiety among employees, which can lead to increased productivity and better overall job performance.

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May 31, 2022
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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.

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