Learn How Income Replacement Plan Can Help Secure Your Family

7-June-2021 |

 

What is your biggest motivation to go to work every day? For most of us, it is a few people back home whom we call a family. Now, family is a powerful motivation. It can enable you to take on any storm that comes your way with a smile. All this because you would not allow a single frown on their face to ruin their mood. However, some storms come quietly. They hit us out of nowhere. We are talking about sudden accidents, diseases, and impairments that can leave us immobilized and our loved ones distressed. It is for these times we take a term policy or term insurance policy.

 

A term policy is a life insurance product that doubles up as an income replacement plan for your loved ones in your absence. While there are various income replacement plans available today to choose from, we believe that term insurance makes for some of the best. Tata AIA Life Insurance has various term plans to choose from.

 

 

What is Term Insurance?

 

Term insurance is a life insurance product that extends its utilities for a specific period of the term, or as we call it here, a specific “term”.

 

During this term, you could opt for regular withdrawals or a whole endowment plan, which pays you the invested corpus and returns on maturity.

 

Who Needs a Term Plan?

 

If you’re the sole provider of your household and your income takes care of your dependents, you cannot risk your and your family’s future.

 

In the case of a health emergency, where you are bedridden or permanently incapacitated, your family will need financial resources. Your term insurance provider will come into the picture at this point and compensate them for the financial loss based on your premium.

 

The term insurance premium is calculated based on: 

 

1.Age of the insured person.

2.Gender.

3.Marital status.

4.Lifestyle habits.

5.Health conditions, pre-existing illnesses, and critical ailments.

6.Profession.

7.Sum assured.

Let us assume you are not the only employed person in the family. However, your family has taken a few loans, which are still to be cleared. You would exhaust your earnings if these loans weren’t supplemented by another source to pay off the installments. Your term insurance can help you here.

 

You can also get group term insurance for your family under a family secure plan. Unlike health insurance policies, you often get your purchase price back in term insurance. When you opt for a regular payment or even an endowment plan that gives you a lump sum amount when your policy matures, you get returns many times higher than the premiums paid.

 

Term Plan Benefits

 

  It is clear that your term plan is like an investment for the future of your loved ones in case of

  unforeseen circumstances You get financial stability, while you also get a chance to beat inflation. 

  This is a list of summarized points on how a term plan benefits you:

 

  • It helps you save on taxes*

  • It safeguards you and your family against the uncertainties of the future.

  • It can be supplemented using various riders1 like accidental death, critical illness, etc..

 

 We hope this article has helped you understand how life insurance policies can help you cope with
 financial stress, at the very least during emotionally rough patches. Before you buy an insurance
 policy, read it carefully and compare the various options available in the market. 

 

 

L&C/Advt/2021/Jun/0817

 

 

Conclusion

Financial independence provides not only financial benefits but also mental peace. Knowing that you and your family members have coverage against life’s uncertainties can give relief and comfort. However, achieving financial independence requires discipline and commitment. Choosing the right insurance plan and regularly paying premiums is a proven way of gaining financial independence.

When looking for a term plan, you can take the help of tools and calculators to understand your financial needs. Tata AIA Insurance offers a wide range of calculators on its website to help people meet their financial goals. Those looking for a savings plan calculator can use any of the tools available on the website that suit their financial planning needs.  


Get in touch with us today for more details.


People Also Ask Answered in the Article:

 

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Disclaimer
  • *Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you
  • 1Rider is not mandatory and is available for a nominal extra cost. For more details on benefits, premiums and exclusions under the Rider, please contact Tata AIA Life's Insurance Advisor/ branch

  • Insurance cover is available under the product.

  • The products are underwritten by Tata AIA Life Insurance Company Ltd.

  • The plans are not a guaranteed issuance plan and it will be subject to Company’s underwriting and acceptance.

  • For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.

  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.

  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.