As per the concept of Human Value of Life, individuals up to the age of 40 years should have a life cover of 20-30 times their annual income. Becouse you want to secure your family life.
New Delhi. Term insurance plan is beneficial for any individual. This ensures that the needs of your family for food, clothing and shelter, etc., continue to be met when you are away.
Every earning person saves to achieve certain goals. They decide the goal of buying a house. They dream of teaching their children in some famous or foreign university of the country. But, life is uncertain and all these goals can put the family in a sad situation without a source of regular income in the absence of the earning member of the family.
The COVID-19 pandemic is a wakeup call for you to ensure the financial security of the families. No product or service can replace human life. However, a term insurance plan can ensure that the family has the financial resources to continue with their life and financial savings plan. Term plans are designed to make payments on the death of the policyholder. It is the most cost effective tool to provide financial security to the family.
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As per the concept of Human Value of Life, individuals up to the age of 40 years should have a life cover of 20-30 times their annual income. Life insurance cover is recommended for individuals in the age group of 40-50 years with 10-15 times annual income and for persons above 50 years it is advisable to take a cover of five times annual income. It is recommended to continue with life cover till the age of retirement. People should also assess the lifestyle of the family, responsibilities such as children’s education and retiring parents, as well as financial liabilities such as home or personal loans. Apart from this, they should also check whether the amount of life cover is sufficient to cover all these in case of an unfortunate event.
Life insurers have come up with innovative term insurance plans with in-built critical illness benefits that offer dual benefits of health and life insurance. Critical Illness Benefit provides protection against some common known diseases such as heart attack, angioplasty, kidney failure, chronic lung and liver disease and other cancers including breast, ovarian and uterine/cervical cancers. In addition, many more are covered under critical illness benefits.
If the policyholders are diagnosed with a critical illness covered under the plan, a lump sum claim is paid. It provides relief to the policyholders to provide medical treatment at the earliest. Critical illness claim paid out does not mean that the policy has lapsed, the life cover continues, but is paid by reducing the critical illness claim.
