Is it necessary for everyone to buy a Term Plan Insurance?

A Term Plan Insurance is a right type of insurance which is cheaper than other insurances. It is suitable for anyone and everyone. But people jump in for hasty decisions and fall for insurances that doesn’t suit their need. If you have queries such as , do I need a term plan? Which plan is right for me? Is my age  right to buy a term life insurance? If these questions are of your concerns , then go through the below article.

One insurance policy fails to impress everybody as everyone is unique. So, one insurance plan does not fit all in the insurance parlance. You should buy the plan which fulfill your needs. The same things applies while going in for a term plan as well. Your personal needs should be accommodated in the particular plan.

In what circumstances can you avoid a term insurance?

You may not need a term insurance in the following circumstances:

• In case you have enough wealth that you avoid to pay premium every year just to get a lump sum amount as death benefit.
• If you don’t have dependents who may seek benefits on your demise.
• When your fixed property is too small to clear off any taxes.

Let us consider some scenarios before buying a term plan

Scenario 1 - The best time to buy a term plan is before you hit 30. The cost of buying a term insurance at the age of 30 will be much lower than that at 50 years. When you are married and have children by the time you are 30, the dependency increases. But the case may not be the same when you are 50, if you don’t have many dependents, you can switch to a whole life policy.

Scenario 2 - If you are aged 65, and may have dependents due to late marriage or may have to repay a huge loan amount; you may need a term plan insurance as well, unlike the contrary belief. A term plan here may work as a blessing in case of your untimely death.

Scenario 3 - If you aren’t employed and do not have any financial liability or you are not financially sound to pay the premium amount, then you can afford not to have a term plan.

Scenario 4 - If you are a working woman and has quit your job to raise your children. Then term plan is the best suited for you. But for the best benefits you have to be loyal towards the premium payment means you cannot afford to chuck the premium.

Scenario 5 - In case you are a super rich and have inherited some wealth, the dependents may not feel the need of financial assistance. Here, you need to pay tax on any income earned by you as an heir after the death of the previous property holder. There you might need a term plan.

In a nutshell, if you have dependents members in your family you should first think about a term insurance plan. The sum assured by most of the companies is 15 to 20 times of your income. But, if you are a senior citizen with no dependents or liabilities you can choose to do without a term plan.