With Term Life Insurance, You Take 100% Responsibility of Your Family

Securing the lives of your loved one with an insurance cover is one of the best decisions you will ever take in life. With the fast-paced life and the rising uncertainties in the form of COVID-19, the financial impact of losing an earning member can be devastating. However, Term Life Insurance can bring relief both financially and emotionally. It ensures that your loved ones can still fulfill the lifestyle needs and meet various life goals.

A term life insurance policy is a pure life insurance policy that provides a death benefit in case of the policyholder's death. In case of such an event, the beneficiary receives sum assured as a lump sum. Also Read: What is Term Insurance?

• Replacement of the sole breadwinner Term Life Insurance Policy acts as financial security in case of the sole breadwinner's death. The lumpsum pay-out which the beneficiary receives becomes the source of income for the dependent family members. Let's understand with an example:

Assuming Mr.Hiren Patel is the only earning member in his family, he has invested in a Term Life Insurance cover of Rs. 1 crore. The term of the policy is 30 years. In the 4th year of the policy, Hiren has an untimely demise, and the family loses its only financial support. In such a situation, the insurer will offer a lump sum pay-out of Rs. 1 crore as a death benefit to the nominee of the family. Now this will act as an income source for his loved ones in his absence.It is always advisable to choose a life cover amount 15 to 20 times more than your annual income, not less than this.

• Payment of Debts Buying a Term Life Insurance is a boon in itself. It shoulders the responsibility of managing your loan liabilities and other outstanding obligations in your absence. In case you lose the only breadwinner of the family, some amount from the lumpsum pay-out can be used for paying home loans , two-wheeler loans, credit card bills, or any other important liabilities. It helps to reduce the financial burden to a great extent.

To conclude, the Term Life Insurance plan is popular among many people as it is affordable and provides sufficient life cover. It is also a great way to save on taxes. Buy term Life Insurance now and promise your family a secure future.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.