As a young professional, you may be clueless and not know where to begin to build a strong foundation for financial security. As we grow old, we realise the importance of investing for a better financial future. If you are someone who has just started, please do not get swayed away by the glimmering talks of “financial influencers.” However, you may consider investing in a term insurance plan to secure your loved ones financially, even in your absence.
Let us understand a term insurance plan is:
A term insurance plan is a kind of insurance policy wherein your life is covered for the long term. The benefit is offered in the form of a ‘demise benefit’ wherein the coverage amount of your life is rendered to your family in case you meet with an unfortunate incident. This maturity sum is not offered if you outlive your policy term.
The term insurance plan is affordable and easy to avail. In most cases, you can benefit from a term insurance plan if you are 18. This policy is designed to help your family in your absence. It provides your family with the finances they need, either in a lump sum or in the form of periodic payments, so that they can maintain their current levels of lifestyle while getting back on their feet from the emotional loss suffered.
The importance of a term insurance plan for young professionals like you who are building their future:
- Protection against Financial Uncertainty:
Life can take drastic turns, and unfortunate events can occur anytime. Investing in a term insurance plan ensures that you have a safety net in place. In the event of the policyholder’s untimely demise during the policy term, the beneficiaries receive a lump sum payout. This will allow you to protect your family’s interests.
- Affordable Premiums:
Term insurance plans are particularly beneficial for young professionals due to their affordability. Premiums for term insurance policies are generally lower than other life insurance options, such as whole-life or endowment plans. As you grow, your health condition may not be in its prime. This creates a scenario wherein your premiums will rise.
- Flexibility and Customization:
Term insurance plans offer flexibility in terms of policy duration and coverage amount. Young professionals can tailor their policies based on their needs and financial goals. Some term insurance plans also allow policyholders to enhance their coverage through riders. Riders can provide additional benefits, such as an accident or disability protection, ensuring comprehensive financial security.
Due to the details mentioned above, young professionals like you need to avail a term insurance plan in your financial arsenal. This is because you need to invest in some future protection policies, some policies that provide you with medical coverage & some that allow you to grow wealth over time.