The introduction of term insurance policies has helped many of you to protect yourselves from the eventualities of life, such as death, loss of income, critical illness, and so on. Although term insurance can secure you financially, you might not wish to invest in it due to minimal benefits. Since the primary aim of a term plan can be the financial protection of your loved ones, you might assume that it only offers a death benefit. Due to your perception that term policies provide death benefits and not survival benefits, you might conclude that it is an irrelevant expense.
Today, many insurance companies have availed term insurance with death benefits as well as survival benefits, unlike a regular term plan. The term plan, which avails both these benefits under one roof, is known as smart term plan. A smart plan can allow you to add value to your money, which eventually makes your investment in a term plan worthy. Therefore, let’s begin by understanding what smart term insurance is in detail:
A smart term plan can offer comprehensive coverage that can shield you from the eventualities of life. Under the smart term plan, you can opt for customization to match your financial needs and goals. The primary aim of the introduction of smart term insurance is to provide you with a whole term plan and new-age features based on your dynamic needs.
When you buy smart term insurance, you can avail the various features and benefits offered by your insurer. However, the benefits might vary from one insurer to another. Therefore, we have listed down the most common term insurance benefits that can help you to make the right choice:
- You can increase the coverage after a specific duration
Typically, your life can never remain constant. As you progress at every stage of your life, your needs can change. Since your needs might vary based on your life stages, you should ensure that you cover yourself adequately to meet your evolving needs. When you cross certain milestones in your life that requires special financial attention, you can increase the term coverage to safeguard your future. A smart term plan can let you extend the coverage for your financial safety in the long run when you have additional responsibilities.
- You can protect your spouse financially
Marriage can be a crucial milestone in your life. When your partner joins your family, you might have to look after the financial requirement of your partner. Since your partner can become your responsibility, you have to ensure that you protect him/her from every uncertainty even in your absence. Therefore, you should buy smart term insurance after you get married and cover your spouse under the same plan. A joint coverage can provide financial support to your spouse after your demise.
- You can fulfil the educational needs of your children
Your children can be the apple of your eyes. As a parent, your child’s education can be your top priority. However, if you do not have sufficient resources, you might not get to provide the best education for your children. When you are running low on your funds, you should purchase a smart term insurance plan to look after the educational needs of your kids. With the right financial assistance, you can ensure your children get the best of everything without the fear of financial constraints.
- You can cover critical illnesses
As you grow older, you can suffer from severe health conditions such as cancer, cardiovascular diseases, kidney failure, and so on. However, if you do not have adequate funds to treat such life-threatening diseases, it can have a hazardous impact on your health that can result in death. For curing such illnesses, you should buy term insurance, which can cover maximum critical illnesses.
To sum up, a term insurance policy can become a valuable addition as well as an essential part of your financial plan. Due to the recent developments in term plans, you can receive additional benefits to protect you and your loved ones from the unannounced emergencies. You also obtain term insurance tax benefits. Although term insurance can offer high coverage at an affordable rate, you should calculate the premium on a term plan calculator. Determining the premium value before the purchase can help you understand if you can afford the term policy or not.