Financial planning is not a topic most households tend to discuss, yet it is a topic which draws down most of our family goals. Getting your family finances in order can be a challenging prospect, but by breaking down the process, setting yourself specific goals and being disciplined, it doesn’t have to be. By making a financial plan, you can get you and your family on the right path, no matter what your goal is.

Decide the importance of your family goals, depending on importance, time horizon, and financial impact on other purposes. Critical goals like kid’s education and retirement, are non-negotiable. Therefore, it is crucial to invest in a plan that covers your family’s future needs such as term insurance plans.

What is A Insurance Plan?

Term Insurance Plan is a financial protection tool that offers protection for a specific period. During this term, if the policyholder dies, then his family is entitled to receiving a death benefit in terms of a pre-determined lump-sum amount.

 Term plans are one of the most preferred forms of life insurance that many people seek today. This is mostly because of term insurance benefits, which include pure risk protection at an affordable price.

We often underestimate the value of planning our family’s future until something unfortunate happens. However, as we grow old, our responsibilities not only towards our selves but also our family members change. If you have a dependent family to look after, it is your responsibility to ensure that your family members are financially secure even in times when you are no longer around. Overall, a term insurance plan is perhaps the best option available.

Benefits of a Term Insurance Plan

Here are some term insurance benefits and why you should include it in your family financial planning:

·         Term plans have affordable premiums

Term Insurance Plans have a much lower premium than other traditional insurance plans. This low premium allows you to afford an optimal sum assured so that you can ensure enough financial security for your family in your absence.

·         Simplicity

Term insurance plans are much simpler to comprehend than insurance plans such as endowment policies which combine risk cover with savings. Insurance policies which comprise risk cover plus a savings component are also known as cash value plans.

·         Competitive pricing

Term insurance plans are easily comparable with each other based on price as they are structurally similar and simple to understand, which led to increased competition in the market in which term life policies are rapidly becoming popular.

·         Tax Benefits

You can save taxes on the term insurance premiums, as well as the payouts respectively as per Section 80C and Section 10(10D) of The Income Tax Act.

Comprehensive term insurance plans from reputable insurers such as Max Life Insurance protects you and your family against death, disability, and disease. You can also enhance your term insurance plan by paying an extra premium for add-ons such as Critical Illness cover and Accident cover. Overall, being a family person is a massive responsibility – you are not only answerable to your family and children emotionally, but are also responsible for making sure that they remain financially self-sufficient throughout their lives, even if you are not around to provide for them.