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Creating a legacy: Start with a term plan

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A term insurance plan casts a protective net over your loved ones when you are no longer around to do so. If you are creating a legacy, a term plan is a good place to start.

What do you want to be remembered for the most? For being a kind human being who helped every person in distress? An ambitious individual who excelled in their chosen profession? A person who made good on all the opportunities life sent their way, and who worked tirelessly for their loved ones’ dreams?

Or all of the above?

Most of us are so caught up in leading decent, successful lives that the future does not seem to matter till the unexpected happens. Life is so full of uncertainties that it takes just one second for everything to flip over – where you were contended and satisfied with your lot, you are suddenly plunged into chaos. At this time, you and your loved ones might be ill prepared to meet with the uncertainties that follow – and financial uncertainty is often the first one to arrive.

So, the question is: Who would you really like to be remembered as[1]? You will want to be remembered fondly by your family as the person who cared for them even in absentia. How can you do this? Take a term insurance plan.

Term insurance – all-round protection for the future

As a responsible person invested in your family’s wellbeing, you are concerned about how they will manage their expenses in your absence. To this end, you work hard all day and make investments for the future. But despite your best effort, you realise that future needs will require much more money to come to pass. Rising inflation and high living costs form the bulk of monthly expenses. Add to this, children’s education costs, household maintenance, emergency medical expenses, unpaid loans, etc. Collectively, these require a large infusion of funds – which your family may not have at its disposal.

However, taking a term insurance plan solves the problem of future expenses in one stroke[2]. It is a life insurance policy that safeguards your family’s future interests. In your absence, the plan corpus can help your loved ones lead a life of dignity and maintain the lifestyle they are used to.

This is how a term insurance plan works:

  • You can buy the term plan online.
  • The term plan has an affordable premium, but a high sum assured. Use a term insurance premium calculator to find out how much the annual premium will be vis-à-vis the desired sum assured.
  • Most insurance providers offer lower premiums to young and healthy adults, with the premiums being priced higher for smokers. You can use the term insurance premium calculator to find out the corresponding higher premium if you are a smoker, or if you have some pre-existing medical condition.
  • Based on the term insurance plan that you buy, you can also choose the pay-out frequency. The pay-out may either be lump sum or periodic (monthly, quarterly, half yearly or annual). The pay-out frequency must be chosen basis the family’s future needs.
  • Choose a term insurance plan that is most affordable – not costing more than Rs 20 per day – with a sum assured of at least Rs 1 crore[3]. This will ensure that you are not burdened with high premium payments, while your family can comfortably live on the corpus while it tries to get back on its feet.

Things to know about term insurance

  • Since term insurance is so affordable, it is the best option for those who are young and not willing to buy more expensive policies. But if you want to get returns on your policy investment, then you should invest in money back or endowment life insurance plans.
  • The figures shown by the term insurance premium calculator are the closest approximation to the exact premium. You should check with the insurance provider about the final figures at the time of signing up.
  • Term insurance is a pure life insurance product. This means that as a policy holder, you do not receive any of its benefits. If you outlive the plan tenure, you will not receive any of the premiums you paid towards it[4].
  • The term insurance is future protection for your loved ones. In the absence of your income, they will be forced to compromise on their dreams and make major lifestyle changes. However, the term insurance plan corpus can ensure that they continue to live the way they always have, while keeping their dreams on track.
  • Always furnish the latest and most accurate information when buying term insurance plans. Deliberate falsifying or any incorrect data may result in the policy application being terminated. It might also lead to problems during claims settlement at a later date.





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