The world today is very uncertain. Family's financial security is a critical need. Amidst the various other protection plans, term insurance and personal accident insurance are highlighted due to their ability to ensure financial stability and peace of mind at such testing times.
Let's dive right into why these are the need of the hour.
What is Term Life Insurance?
Term Life insurance is a type of life insurance that protects the client for a definite term. In case the policyholder dies during the term chosen, a sum amount is paid as a lump sum to the nominee, with the amount of money also referred to as the death benefit. Other types of life insurance do not offer maturity benefits, making term insurance highly affordable for comprehensive life cover.
Key Benefits of Term Insurance
- Financial Security for Your Family: In case of an untimely death, term insurance will surely help offset the loss incurred by the loved ones in terms of meeting the daily needs or paying loans as well as be used by your child for higher studies.
- High Coverage at Low Premiums: The insurance coverage provided here is significantly more at an economically viable premium price, ideal for middle-class Indian families.
- Customizable Options: Riders like critical illness coverage and accidental death benefits can be added to increase the coverage of the policy.
- Tax Benefits: The amount paid as a premium towards term insurance is covered under deductions under Section 80C of the Income Tax Act, 1961.
What is Personal Accident Insurance?
Personal accident insurance is a financial protection policy issued in case a person suffers injuries, disabilities, or death because of an accident. Accidents can occur without warning, and the consequences they bring can prove to be significant financial burdens.
Important Benefits from Personal Accident Insurance
- Disability Cover: Personal accident insurance covers partial or full disabilities caused by an accident.
- Death Benefit: In case death occurs due to an accident, the nominee gets a lump-sum amount to mitigate financial challenges.
- Affordable Premiums: Like term insurance, personal accident insurance is cost-effective and provides significant coverage.
- Worldwide Coverage: Most policies offer coverage irrespective of where the accident occurs, ensuring global protection.
Why Both Policies are Essential for Your Family’s Future
While term insurance and personal accident insurance are two different products, together they provide a comprehensive safety net for your family. Here's why combining these policies makes sense:
Comprehensive Risk Coverage
- Term insurance will take care of the future of your family in case of untimely death.
- Personal accident insurance caters for the accidents. Accidents are a primary cause of disability and death in India.
Economical Financial Protection
Both the policies are extremely pocket-friendly so that high coverage is easily affordable without straining the family's pockets.
Tailored Solutions
Using a term insurance calculator can help you know how much coverage your family might need. Personal accident policies are also often customizable to fit the needs of every individual.
Peace of Mind:
Knowing that they are well-funded even during most uncertain moments in life will leave them stress-free and free their minds to have a better life in the years to come.
Choosing the Right Policy
The right purchase of insurance policy involves sincere thought over your family needs, financial goals, and lifestyle. Here are some guidelines:
For Term Insurance
- Assess Your Needs: Use a term insurance calculator to determine the coverage amount so that it is enough to cover your family's expenses, liabilities, and future goals.
- Consider the Policy Term: Choose a term for the policy that aligns with your financial liability, such as paying your child's education or loan of your house.
- Check Claim Settlement Ratio: Get an insurer who has a high claim settlement ratio so that the processing of claims would be smooth.
For Personal Accident Insurance
- Review Coverage: Consider a policy which contains accidental death, disability, and medical expense.
- Add-On Benefits: Additional benefits such as hospital cash or family transportation allowance should be found.
- Compare Policies: With the online availability of various websites, policies can be compared, and one of the best can be settled on for value money.
Conclusion
In conclusion, both term insurance and personal accident insurance are vital tools for securing your family’s financial future. These policies not only provide financial support in times of need but also ensure peace of mind, knowing your loved ones are protected.
Start by calculating your coverage needs using a term insurance calculator and opt for personal accident policies that suit your lifestyle. Taking these proactive steps can make quite a difference in the long run and save your family from even the most unfortunate situations.
Disclaimer: No Business Standard Journalist was involved in creation of this content