A good financial plan is not just about saving and investing – it’s also about protecting your loved ones. One of the most important ways to do this is through term insurance. This is the simplest and purest form of life insurance. It provides financial support to your family if something happens to you.
Experts like Satishwar B, MD and CEO of Bandhan Life, say that insurance is not just for married people or those with children. Even young professionals with loans or financial responsibilities should consider it. Life insurance helps in two situations – if you die young, or if you live long. Term insurance is meant for the first case – it replaces your income if you’re no longer around.
ALSO READ | Bajaj Allianz Life Insurance launches Superwoman Term Plan for women
Sarbvir Singh, Joint Group CEO of PB Fintech, points out that many people in India are still unaware of what term insurance is. A recent survey found that about half of the people didn’t know the difference between term insurance and other life insurance plans. He adds that if you have financial dependents or loans, term insurance is a must.
How much coverage do you need?
A simple rule is to multiply your yearly income by the number of working years you have left until retirement. For example, if you’re 30 and plan to retire at 60, you should aim for about 30 times your annual income.
Watch this video for more.
Also Read | 75% policyholders underinsured for health crises; 47% unaware of term plans: Policybazaar
(Edited by : Shoma Bhattacharjee)
