Buy Insurance; Buy Term

Life is precious and we all long to become immortal which is impossible, but the fact is that we fear death. When it comes to your family and loved ones, you never want to compromise on anything. If you are head of the family, you have a great responsibility and what if you are a single parent? Life is so unpredictable and full of unexpected situations, we don't even know what will happen the next second. So, what is the solution to it- sit and worry, think over it and lose hope, Que sera sera (whatever will happen, will happen)?

Life

No, this kind of an attitude won't work. Here is the best option you can do to protect your family. One cannot stop the mishaps but one should always be prepared for such things. That is where insurance comes in. But which insurance? So, let me say two things upfront. First, buy insurance at the earliest and then when you are deciding to buy what kind of insurance to buy, opt for Term insurance. It is the best option of all. But you might ask what is it and why it is the best?

Term insurance is a life insurance plan which provides protection financially to the family of the policy holder in case of death of the holder during the term period. In simple words, it is a sum or amount assured in the form of death benefit to the family of the holder at the time of his death.

Why is this different?

This should be preferred because it offers flexibility of choosing your own term or the number of years as per your need at low price. The premium amount of the term insurance is low when compared to other insurance plans and at the same time the sum offered is high. It does not offer any returns like an endowment policy or money back policy, which is why it is cheap. Most people end up buying expensive Money Back or Endowment policies or ULIPs, but the returns are poor. Agents typically do not market it as their commissions on it are low and neither do the insurance companies. However, they are available and even available on line, where the premiums are even cheaper. In any case, insurance and savings should never be mixed. There are many other options investment options available, which will provide much higher returns.

The best time to buy insurance, is the moment you start earning and the amount depends on your salary, standard of living and how much monthly payment would be sufficient for your family after your unfortunate death. Hence, the amount you pay as premium will be calculated on the basis of the years or term you choose. Buy insurance, buy Term Insurance… Now!