Putting your family first is an approach taken by many when they want their spouse, parents, or children to live secure lives without hardships. But can you shield your loved ones from everything? From a practical viewpoint, it is not possible. So, while you cannot shield your family from every problem, big and small, it does not mean you cannot do anything to protect them. One way to offer financial protection to your family is by getting life coverage for yourself. One of the affordable life insurance policies is a 10-year term insurance plan.
What are Term Life Plans?
Similar to any life insurance policy, a term plan is a contract between the policyholder and the insurance provider. It is initiated when the policyholder makes a policy purchase. The policyholder maintains the policy by paying premiums to the insurer. In return, the insurer offers certain benefits to the policyholder. These benefits are policy-specific. The sum assured is the benefit you can enjoy as a policyholder.
If something unfortunate were to happen to you during the policy term, the nominee can claim compensation. This compensation is given in the form of a death benefit. This amount depends on the sum assured under the policy purchased by you. The policyholder may also choose to nominate multiple people as nominees for the benefits.
Pure-term life insurance plans are simple in design. They primarily offer only a death benefit and no maturity benefits. The simple design is said to keep the plan costs lower, making term insurance one of the most affordable life insurance plans available in the market today.
You may opt for these plans to ensure your family’s financial future is secure, whether or not you are there with them. You can also buy these plans if you have any liabilities that you would not want to burden your family with.
What is 10-Year Term Life Insurance?
The 10-year term life insurance plans offer life protection coverage for 10 years. If you use a term plan calculator, you can set the plan duration to 10 years. Input your desired sum assured and the premium payment frequency. The premiums will be computed accordingly.
Why Buy 10-Year Term Insurance?
10-year term life insurance plans can be purchased for offering financial security to your loved ones, without having to burden yourself with heavy premium costs during the premium payment term. You can buy such a policy as your primary life cover. On the other hand, you can also use it to cover any liabilities. For example, imagine you have taken a vehicle loan, home loan, or any such loan that you are expecting to pay off in the next five to ten years.
If something were to happen to you in the next few years, the burden of the loan would fall on your family. A 10-year term life insurance policy may help save the situation during the policy term. Such a policy can also be suitable for people in higher age groups, who are closer to retirement or have already retired.
Some of you may still need to support your loved ones and may need the policy to help with the same. A term plan for a decade may suit your needs depending on various factors. Premium rates may be higher for older people. It is advisable to use a reliable term insurance premium calculator before making the policy purchase to get an estimate of the probable premium amount. It may also be suitable for younger individuals who want financial security and also want the insurance plan’s costs to be affordable.
A 10-year term insurance policy is one of the many variations of term life policies available today. If you are considering trying these plans but are not sure about them, you may consult an insurance advisor or an insurance agent.
Benefits of 10-Year Term Life Insurance
When deciding on a 10-year term life insurance plan, it is important to understand its benefits:
Affordability: The premiums for a 10-year term life insurance plan are generally lower compared to longer-term plans, making it more affordable for individuals on a tight budget.
Flexibility: A 10-year term policy offers flexibility as it allows you to re-evaluate your insurance needs after the policy term ends and choose another plan that suits your evolving requirements.
Specific Financial Goals: This type of plan can align with specific financial goals such as paying off a loan or funding education expenses within a set time frame.
Ease of Purchase: The 10-year term life insurance plans are relatively easy to understand and purchase, with minimal paperwork involved.
Family Protection: These plans ensure that your family is financially protected in case of any unforeseen events during the policy term.
Tax Benefits: The premiums paid towards a term life insurance plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961.
Conclusion
Understanding 10-year term life insurance plans is crucial when it comes to protecting your family’s financial well-being. These plans offer affordable premiums, flexibility in coverage, and can align with specific financial goals. By using a term plan calculator and consulting an insurance advisor or agent, you can make an informed decision based on your unique needs and circumstances.
As you plan your next financial steps, consider how a 10-year term life insurance plan might fit into your overall financial strategy. Remember, it is important to prioritise your family’s security and empower them to face any challenges that may come their way.
To explore different term insurance plans suitable for your requirements, use a term insurance premium calculator to estimate the premium amount and make an informed decision.
