Most asked questions about Term insurance
“Son to Father in 1960’s Q: Daddy when does a young individual becomes a grown-up Ans: On becoming an earning member Son”. But my question in 2013 is when does he/she transition to be a responsible member? Is earning just enough today?
My readers might argue that Vis a Vis the title of the blog why I am prodding on “responsibilities” and stuff. So let’s step back a bit, just to understand the deeper meaning of the word RESPONSIBLE….and believe me its linked to the title just keep reading folks..
For me personally responsibility comes out of reality. One needs to know the harsh reality out there to be sufficiently responsible. But does one always become aware of it?
Do you know that if you are the sole bread winner of your family, and if your (DOD) date of heavenly departure happens to be earlier than you intended… who would take care of your family RESPONSIBILITIES?????
The pun was purposefully intended so that you feel the prick if you have not thought on these lines till now.
Okay so now I have got you thinking!!!, Thankfully because we are living in India, the govt many at times thinks better than us and hence there are plenty of options available to us for safeguarding the interests of our families.
They all can be clubbed under the wide umbrella of Life INSURANCE. Whose role would come into action after we depart, provided we do the needful to receive it.
Life insurance in short de-risks you from any of the financial obligations that you are responsible towards your dependent family members.
But when a layperson goes about searching for Life insurance with the intention of securing his family in case of something happening to his life, he might get confused as there are multiple types of Life Insurance. To make matters simple for reader, I am going to point out the life insurance that is a MUST HAVE in your kitty today. it’s called TERM INSURANCE.
I am jotting down a few FAQ’s of term insurance just so that you get to the crux of the product.
1. What is Term Insurance?
It’s an insurance provision that covers your life for a specified term. My personal suggestion is you do a good amount of soul searching and research, probably meet a good financial advisor to ascertain what is the term that your life should be insured for, before you go and purchase term insurance.
2. Whom should you approach for information regarding Term Insurance?
Let’s get this right, we are insuring your Life, so the entity or individual that you choose to oversee your insurance should be trustworthy and independent enough that when you are knocking on heaven’s door, he is knocking on your front door!!!
My suggestions are to approach a well wisher who has in-depth know-how of term insurance as well has successfully processed claims in the past. (good track record)
3. Should you be buying term insurance from a govt or private firm?
If it’s the first time you are buying term insurance, then please go for LIC (Life insurance Corporation), it has proven its metal since our father’s times.
4. When should you purchase Term Insurance?
If it’s not there in your kitty and you are the sole earning member.Do your family a favour buy yourself a Term insurance policy right in the first year of earning. Believe me it’s a wise investment.
5. What has Term Insurance got to do with responsibility?
You and me go to work, we are probably lucky that we are educated enough to get ourselves a decent education, a workplace and the basics to start a family. But there is a higher order of gratitude that we need to responsibly address to our families.
We need to be realistic and that means taking decisions that will allow our dependants the chance to enjoy the same if not better what chances we got to make our lives. And in the sad event of us not being there to provide that… I would really helpless seeing my loved ones going through strife just because I didn’t take a simple decision to adequately secure my life with Term Insurance. So let’s be wise and secure ourselves for the benefit of our families.
Be safe and take care. will be adding more blogs soon. Do keep writing to me.