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Financial safety is undeniably one of the most critical aspects of any individual’s life. Especially considering the current tough times, most everyone feels overwhelmed by financial worries. Whatever the circumstances may be, there are ways to get through it and ease stress and anxiety. Like any other stress, financial problems can take a significant toll on your mental and physical health. It is challenging to save money and get ahead financially when you try to meet ends meet. Hence you need to take steps towards regaining control of your finances.

When planning financial security, you need to think about protecting your family from risk and ways to save and invest for your future. Exactly where the best term insurance in India helps to protect your family with a minimum premium.

Buying Term Insurance in 6 steps

Buying Term Insurance in 6 steps

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However, with the many available term plan insurances available, it becomes confusing as to how to proceed and get invested

in the best term insurance in India. Not to worry, here we have highlighted a few questions that you consider as steps to realize before investing in a term plan insurance.

  1. How To Build An Emergency Fund?

Building an emergency fund becomes the first step in your financial safety net. Finding the best term insurance in India gives you protection in unforeseen emergencies. You should create a particular savings account just for emergencies. Unfortunately, many people overlook the importance of creating an emergency fund. They tend to rely on their savings.

Moreover, your emergency fund should have at least 3 to 6 months’ worth of expenses, covering all sorts of money emergencies like an unplanned hospital trip. A term plan insurance is a savior in many situations.

  1. How To Protect Your Family?

Protecting a family with term insurance is a crucial piece of your financial safety net. An insurance death benefit can be a lifesaver to your family when something to you. It also helps to provide immediate liquidity for your beneficiaries.

Purchasing the best term insurance in India is worth it even when you are young and healthy because it is inexpensive. Since your premiums remain the same during the length of the term, you can add them to your monthly budget.

  1. How To Protect Your Income?

You have probably never thought about protecting your income. But your most valuable asset is the ability to earn it. Without salary, financial disaster will occur very fast. Losing the income can become the most significant financial blow.  Long-term disability insurance is one of the areas of risk protection the people don’t understand. But you should certainly pay attention to this.

Many people get confused between long-term insurance and short-term insurance. Long-term plan insurance can help you to add some percentage of income for injuries lasting over 90 days. You can use term plan comparison to get a clear view.

Protect your Income

Protect your Income

Image Courtesy: Shutterstock

  1. Are There Any Options To Plan For Your Retirement?

It is essential to create a robust saving plan for retirement. Irrespective of the market’s ups and downs, savings allows you to decide how you want to live your life in the future. More importantly, retirement savings can now help you protect against any future emergency of running out of money in retirement. The most unfortunate reality is that most people are not saving enough. This means that you either have to work a lot longer or grammatically decrease your living expenses.

Moreover, all those non-working years will require some cash flow to provide an income stream when you have a 401 at work that becomes the best place to save for retirement. Here, employers also contribute as much as 50% of your contribution up to 6% of your salary. IRA also works just like 401k, where you have to invest money until the retirement age. Moreover, this also helps people to get a tax bracket when they retire. Availing the offer financial security to your family.

  1. How To Purchase An Umbrella Policy?

Once you have secured your emergency fund, primary insurance coverage, and retirement savings, it is good to see other holes you might have and patch them if it is still in your budget.

An umbrella policy is a supplemental liability policy. You can purchase it to cover over and above the limits that your car insurance or home insurance covers. Though it is not necessary, it helps to provide an extra level of protection in incidents like

  • Crossing your limits

An umbrella policy will pay the expenses that exceed current auto or home policies can pay in the event of big claims or lawsuits.

  • Excluded from your limits

This policy can pay all the expenses related to claims that are not covered by your current auto and home policies, like false arrest and slander.

  1. Will There Be Any Income Tax Benefits?

When you apply for a term insurance plan, you will also receive tax benefits. These benefits come under two sections of the Income Tax law. Always remember to use an income tax calculator.

  • Section 80c gives tax benefit on the premium paid towards the term insurance policy.
  • Section 10D provides tax benefits on the maturity amount.

Now that you know some of the critical steps for realizing your ideal term insurance requirements, you can do your research and invest in a term plan insurance suiting your needs the best!