Life insurance is a long-term commitment to getting life cover in exchange for timely premiums. It lets you sleep in peace with the knowledge that your family is well-prepared for any uncertainty in your absence. With such a straightforward and meaningful proposition, you would think everyone would get himself a life insurance plan. or
However, the reality is quite different, as we will see in Ankit’s case.
Ankit Kapoor, a 30-year-old working in a private sector, is married and has a kid. He understands the need for life insurance and has often thought of buying an insurance policy at the first opportunity. That opportunity never arrived and there’s one good reason for it.
The reason is every agent that Ankit met sold different and expensive insurance plans for him and his family which he for had to pay for a period of 15 to 20 years. Ankit feels it may not make sense to pay so much money every year.
Ankit’s dilemma might sound familiar to many individuals. Ankit had almost dropped the idea of buying a life insurance plan but he suddenly met a good financial planner from a reference. This meeting ends on a very different note. Ankit not only realised that he needs life insurance but he also realises which plan is suitable for him and how much life cover he would need.
The engagement with this particular financial planner turned out to be very different for Ankit. It began with the basic questions related salary, expenses, and liabilities that go in the calculation of the sum assured. However, this time, the financial planner suggested that he should opt for an online term insurance plan with a comparably lower premium for the same sum assured. This made the process of buying life insurance sound easier.
Term plans have some key features that make buying life insurance an easier decision.
Term plans are pure risk protection plans and offer life cover with no savings or profits component. Simply put, if Ankit survives the policy tenure, he will not receive a payout. Term plans make a payout only in case of an unforeseen eventuality.
For this, the premiums rate of term plans is affordable as compared to other forms of life insurance.
Compared to plans with ‘with profits’ or participating insurance plan, Ankit will receive a higher cover on a term plan at relatively lower premium rates.
Ankit’s objective was to first secure his family’s future and post that to plan for investments. This makes term plans more suitable for Ankit and others with similar needs and financial profile.
Like Ankit, if you are mulling on buying a cost-effective life cover to secure your family, an online term plan is a must have priority among your other financial saving plans.
Don’t let worry come knocking to your doors. Be prepared with Edelweiss Tokio Life – Zindagi Plus a solution that will enable your loved ones to achieve their dreams without any compromises, in case of an unforeseen event.