Term plan is a pure risk plan. It covers an individual’s financial loss due to loss of life. Thus, it helps to safeguard family members of primary earning member. Also there are multiple reasons other then this.

Term plan is taken for the following purposes:

  1. Loss of Income Due to Loss of Life: It compensates the family in financial terms. One can secure 20-30 years of income for the family in case of his/her loss of life.
  2. To Cover Risk of Loan Related Liabilities: In case of death of the individual, institutions like banks get protection against loan recovery related uncertainties.
  3. Loss of Life of The Main Person of Business (Key Man Insutance): Businesses also consider such insurance as it gets loan or credit because of the goodwill of owner/key employee. Thus in case of an unfortunate event, it can get protection against the financial liabilities of business up to the risk cover.
  4. To Fulfil Liability of Company For Death of An Employee During His Working Hours: Businesses are morally & legally liable to compensate the death of their employees during working hours.

One needs to have proper advice before buying a life insurance (or any insurance of that matter). Term plan being pure risk product, it is advisable to contact an experienced insurance advisor.

To know more about term plan & to buy one you may call us on 9879956949 or e-mail us on hardik@niveshplanner.com.