Life can be uncertain. A single unexpected emergency can have a huge impact on your wellbeing and your future. Hence, a term plan can come to your rescue. But what is term plan? A term insurance plan makes sure your family is secured in case of any unfortunate event. This plan offers the same type of coverage to anyone who buys it. However, your coverage needs may be different than the next person who buys it. Hence, you need to get away from this one-size fits all approach and opt for a customizable term plan.
A customizable term insurance plan allows you to get specific coverages that you may not otherwise have in a regular term plan. This means that you can adjust your term plan based on your needs.
Some Customizations That You Can Make:
- Accidental disability cover
There can be instances where road accidents or other unfortunate events can cause disability. This can have a huge negative effect on your family, both emotionally and financially. This is especially true if you are the sole breadwinner of the family.
To be protected against an event like this, you can customize your term insurance plan to have an accidental disability cover. Depending on your insurance provider, your accidental disability cover can include temporary disability, permanent disability, or both.
- Waiver of premium cover
A term insurance plan, just like any other type of insurance, continues to cover you as long as you keep making premium payments. If you fail to make even a single payment, your policy expires and you lose the coverage. However, life as you know it is very uncertain. However, there could be times when you find yourself in a financial emergency and are unable to pay your premium on time. During this time, the waiver of premium cover allows you to have some flexibility with your premium payment.
- Income benefit cover
In a basic term plan, the family gets the sum assured as promised and then the transaction is over. The money they receive may or may not be enough to cover their financial needs for now and the future. This is where an income benefit cover helps. As per this cover, your family not only receives the death benefit but also an additional annual income for the next few years. This gives your family enough time to get their day-to-day finances in order.
How Customizable Term Insurance Benefits You?
Here are a few term insurance benefits across different stages of life that you can have with a customizable plan:
- Young adult
A young adult is someone who has just started his or her career and is earning a basic income. At this stage, there are little to no liabilities. Hence, it is an ideal time to plan well for your life ahead. Use a term insurance premium calculator to calculate your term coverage and then customize it as per your needs.
- Adulthood
Either you are just married or have kids by the time you reach this stage. This means that you not only have to secure your future but that of your family as well. This is also a stage where you could make the biggest expenses of your life. You could buy a home, or want to save up for your child’s education. Having a customizable term plan means your family will be secured in your absence.
Therefore, if you need to include certain elements to your term plan in order to accommodate it basis your needs, make sure you opt for a customizable term plan. Additionally, consider and learn about all aspects that can be included, basis your life stage and needs, in the plan before you take the final decision.