Term Insurance Importance

Is Not Having Term Insurance A Really Bad Idea?

Who will take care of my children, my parents and my spouse when I am gone? If you are the only one financially supporting your family, this thought must have crossed your mind a number of times hasn’t it?

Life can impose infinite dangers at the most unanticipated times. And, without a term insurance policy, meeting such risks arising out of the bread winner’s untimely death can be emotionally and financially devastating for the ones who are left behind. There are certain things that are not in our hands, but we can always try to take the necessary precautions.

Since life can throw up nasty surprises, you cannot leave your loved ones to suffer after your demise. Insurance is one such step to ensure their safety and security, and undoubtedly, term insurance serves as a lifesaver for your dependent family members. With an adequate term insurance plan, you can at least help your family maintain the same standard of living in your absence.

Considering the harsh realities and complexities of life, let’s see why you should not give up on the idea of buying term insurance ?

What Is Term Insurance?

Term life insurance acts as an income replacement tool for the dependents after the untimely demise of the insured. In case the insured dies during the policy term, the nominees will share the benefits in the lump sum or in parts. And, there are term insurance plans that return the premium at the maturity if the insured outlives the policy term.

You can invest your money in other funds, but to sustain the funds, you will also need to be alive. It’s only with a term insurance policy that you cover your life’s risks with low premiums.

There are a number of term insurance policies available online. Some of the best life insurance companies in India are offering term insurance at affordable premiums. And, you can easily choose a term plan as per your financial capabilities and future needs.

If you are wondering how much should be enough? Well, the thumb rule is to have life cover at least 10 times your annual earnings and adding up the coverage amount keeping in view the long-term goals.

Benefits of Term Insurance

Before you start saving for your family, consider buying yourself life cover with a term insurance policy. Have a look why.

  • Takes Care of financial Liabilities

It ensures financial support to your family when an emergency strikes. There is no greater happiness in the world than seeing your loves ones happy and stress-free. Even when you are not around, with term insurance, they can peacefully cope up with debts and other financial liabilities.
With the insurance amount, they can pay-off routine expenses like education fees, medical treatment, electricity bills, and similar expenses. You can have your peace of mind, as term-insurance assures that things will sail smoothly even when you are not around.

  • Offering Security And Safety To Your Loved Ones In Your Absence

There is no greater pain than to lose a loved one. And, when it’s the breadwinner of the family, it can lead to a financial shock with sudden loss of income.

But, with term insurance in place, they can pursue their existing lifestyle. It will financially protect them from any such unforeseen circumstances.

  • Tax Saving Benefits

Not only it protects your loved ones, but also allows you to avail tax benefits on your present incomes. Under Section 80C of the Income Tax Act, 1961, you are entitled to avail tax benefits up to a maximum of Rs 1.5 lakhs.

  •  The Tax-free Payout For Dependents

In the event of your death, your family will be paid the entire sum assured without any deductions. What else can one ask for? You have no control over the death, but you can definitely save your loved ones form any financial crises with term insurance.

When is the Right Time to Buy a Term Insurance Plan?

Some things are better done today, than leaving them for tomorrow. When it comes to ‘term insurance’, the earlier you start, the affordable it is. Simply put, people who buy it at a young age are charged a lesser premium as compared to those who cross a certain age.

Similarly, non-smokers will be charged a lesser premium as compared to those who smoke. If you follow a healthy lifestyle, you will need to pay less for term insurance. But, even if you smoke or consume alcohol, you can a buy a term plan just by paying a little extra premium as compared to non-smokers.

Is Pre-Medical Screening Required?

Pre-Medical tests are required for those who are 30 years of age and above. As people above 30 years of age are more vulnerable to health-related ailments that increase the possibility of a claim.

So, if you buy it at a younger age or soon after you get married or have kids, it will be a wise decision. It will certainly reduce the chances of your application being rejected.

What are the Possible Consequences of Not Having a Term Insurance Policy?

  • Emotional and financial turmoil on the family

It’s even heart-wrenching to imagine the repercussions of a family coping-up with the loss of the wage-earner. A situation like this can land your family in trouble. Nothing can replace the emotional loss, but with term-insurance, you can be sure of the financial support.

  •  Difficulty to pay the routine expenses

Anybody’s world will get shattered, dreams will break and even the basic necessities will become hard to fulfill. Can you imagine your life without even the basic necessities? Then how can you leave them alone to deal with such difficulties when you are gone. With term insurance, your family can at least sustain their expenses on everyday living.

  • Home Loan Debt ( if any)

You dreamt of moving into your dream house with your family. But, life can be cruel sometimes. In the event of your sudden demise, it can be difficult for your family to pay even the monthly installments of the home loan. With term insurance, they will be able to pay off the debt in your absence.

Check here : Best Term Insurance Plans 2019


Hence, it is essential to purchase term insurance for those who are the sole earners in their families. The earlier you buy one, the more you can benefit from it. This will be the most sensible investment that you will make. If you do not want your family to bear consequences of dealing with merciless lives, especially when you are not around, then term insurance is a must!