Beginning of the year is the best time to analyse your financial goals. While you review your progress, financial security of your family should get the highest priority. Achieving life goals is a long-term process and may often stretch until your retirement. But, what if you are no longer around? How will your loved ones survive and pursue their life dreams? So, you cannot take a chance with the financial security of your family. That said, buying term insurance should be the first resolution that you must take and execute as you do your financial planning. It will make sure that your family is financially secure even after you are gone.
Term plans are the cheapest insurance plans. A person in the age bracket of 25-30 can easily get a life cover of Rs 1 crore for as low as Rs 500-600 premium per month. Unlike investment plans, there is no payout if the policyholder survives the policy period because the term plan is a pure insurance product meant for making good the financial loss in case the policyholder is not around.
One must know that insurance is not meant for wealth creation but for the mitigation of financial loss for your family in your absence. It gives you peace of the mind that the expenses of your family will be well taken care of for a long period of time, that is, your children getting well settled in life and your spouse enjoying financial independence.
Main Source - Businesstoday