We are sure you know what role a term insurance can play in your life. Term insurance is an insurance product that offers coverage for your life against the premiums you pay. Upon your demise, your family gets to claim the sum assured. It allows them to lead their lives without impeding their lifestyle. 

But what makes term insurance so great? 

  • It has low premiums and high coverage, making them affordable. A term insurance cover of up to 1 crore can come at a Rs. 15000 per annum premium. 
  • You can invest in it as soon as you turn 18. 
  • Protects you from financial crisis. 
  • Provides you with tax benefits. 
  • The premium payment can be flexible. 
  • The coverage amount can be tweaked as per your needs. 

Six things finance experts say about term insurance: 

  1. How do you choose your coverage amount? 

As a rule of thumb, you can determine this amount by considering your annual expenses and income. You can determine a sum which is 10 to 12 times more than your yearly income. This allows you to have substantial coverage across a period of time, and the amount is at par with your needs in the future. 

  1. Choosing the best riders for your term insurance: 

Riders are a great way to make your policy well-rounded. The riders can be added to your policy at an extra cost. They can be anything like an accidental rider, death benefit, critical illness rider and more. 

  1. When can future premiums be waived off? 

In a case where you’ve had an unfortunate event, your family or your beneficiaries will not be troubled with the payments of impending premiums. The coverage amount determined for your insurance will be offered to them based on the terms decided. It can be a lump sum or via periodical payments.

  1. How can you use it as a collateral? 

In times of financial uncertainty, when you need an influx of cash that supplements your income, look at your term insurance. It can be kept as collateral and provide you with favourable loans that will allow you to float through this crisis in a smooth way.

  1. How to develop a portfolio around a term insurance policy?

Term insurance acts as an anchor for your family after your demise. Now, your portfolio can’t just be a term insurance policy but also other investment tools like equities, FDs, mutual funds, bonds, REITs, and much more. Striking the right balance between equity and debt in your portfolio will allow you to maximise returns and have a stable portfolio.

  1. Peace of mind: 

If you are reading this, you are the sole breadwinner for your family. To make the financial life of your family easy in case of your death, you can ensure the term insurance to deliver the sum assured for your family. It offers you the peace of mind you have managed to secure your future. 

Those mentioned above are a few things that experts say about term insurance. Read and research more to choose the best policy for yourself.