- Date : 10/11/2019
- Read: 5 mins
- Read in हिंदी: मेरी तरह टर्म प्लान न लेने की गलती न करें
If you give any of the mention excuses, you might be inviting a trouble in yours and your loved one's life. Read and take a smart decision of buying a term plan to create a shield around you and your family
"I am young and able-bodied — I do not need to think about life insurance right now..."
'My situation was different, or so I thought.'
What are the odds of passing away, while you are still young, with a loving wife and two young kids? Nobody thinks of death, disease or sickness when everything is going well. At least, I did not consider it. Unfortunately, awful things can happen to young people, more often than you think. I thought I was invincible and that the statistics are in my favour. I was young and healthy; but the truth is, I didn't know what was lurking around in the corner. My story is not meant to frighten you; it is the stark reality that life has its uncertainties, and you must be aware of it.
Perfect life, or was it?
As the general manager of an exciting start-up, I was excited about life: big plans of expansion, international travel, moving into a new (bigger) house etc. filled most of my thoughts. Little did I realise that life had other plans for me. After a persistent bout of a cough that lasted a little over two months, I finally relented to my wife's pleas of visiting a doctor. A series of mind-boggling tests revealed the inevitable. I was diagnosed with extensive stage, small cell lung cancer. Without any prior warning or an inkling of the malignancy festering in my body, I was given an ultimatum. Suddenly, it all came crashing down. I wasn't prepared for this; not emotionally or financially. As I began to make preparations for my immediate future, I realised how unprepared I was and the void I would be leaving my family in, being the sole earning member. Since then, not getting a term plan has been my biggest regret.
Buying a term policy was not something that I had prioritised. Why? Here are my reasons.
Not a fun task
Flipping through various term policies is rather sombre. That is because nobody wants to plan his or her death. The idea of getting a term plan tends to get postponed until “the near future”, but as things panned out for me, it was the most critical piece of investment.
A term insurance plan is one of the best ways to safeguard your family in your absence. This kind of insurance policy gives your loved ones the resources they need to get by if you are not around. Term insurance needs to be looked at as a financial product, rather than an extravagant purchase. It is particularly vital if you have a family with kids and other dependents because a term insurance policy acts as an unseen protector.
I have a group policy. Why do I need a term cover?
I had a preconceived notion that a group medical policy, provided by my company, was more than enough. It does cover medical expenses and hospital costs. But that's where the benefits end. How will my wife cover family expenses in my absence? How can I expect her to take care of our children's needs, education and future? One of the most ignored aspects of insurance planning just might be that women usually live longer than men. Since women have a longer lifespan, how can they be expected to look after themselves in their sunset years if they don't have a source of income? I realised that having a robust term plan would have made it easier for my family to get by.
It is a dead investment
The irony is not lost on me. As I look back now, this is a common excuse that many people like me raise when it comes to buying in a term plan. Very few of us realise that we are four times more likely to die from an ailment than a calamity. This is why a term policy is crucial. It calls for minimal investment, with a substantial return in the long run, should something ever happen.
Unlike me, do not look at a term policy as an "unnecessary investment" or ''money squandered'' because, in reality, it can be a lifesaver in times of trouble. Can you imagine what would have happened to my family if we bought a bigger house and my family was left to repay the home loan I had taken?
The best time to buy term policy is NOW. Regardless of how old you are, buy a suitable term insurance plan while it is still affordable! Remember, the longer you wait to buy this policy, the more expensive it will get. On the other hand, purchasing a plan now will mean you pay the same premium throughout the term. I used to think that it was an extremely difficult task, but that's not true. You can easily find out how much cover you need and the premium cost by using a life insurance calculator. The process is quick and simple, and you can give your family a protection plan within minutes. If there is one thing that you should take away from my experience, is to think of the death benefit from the term insurance as a final, affectionate embrace you will ever give your family.
Disclaimer: This Article is intended for general information purposes only and should not be construed as investment, insurance, tax or legal advice. You are encouraged to separately obtain independent advice when making decisions in these areas.