You are Self-employed, Term Insurance is very important to you - Fast Blog News

You are Self-employed, Term Insurance is very important to you

Term Insurance is very important to you
Term Insurance is very important to you (Pixabay)

  • In term insurance, you get a very high premium cover at a very low premium.
  • Term insurance cover must be at least 10 times your annual income.

Outbreaks of coronavirus are on the rise in the country. As of September, the death toll had risen to 98,000. If you want to ensure the financial security of yourself and your family, term insurance is the best solution for you. While term insurance is important for everyone, if you run your own business or business, term insurance becomes even more important to you.

In term insurance plans you get very high premium cover at very low premiums. Such policies are purely for safety. In a term insurance policy, there is no benefit related to money on maturity, but in case of untimely death of the policyholder, the nominee gets the sum assured. This amount is many times higher than a traditional life insurance plan.

Why Term Insurance is Important for Self-Employers

If you run your own business, you are also responsible for the home. In the Corona crisis, many people are facing business losses. As a result, people have got loans. In that case, if something happens to you, the whole burden will fall on your family. In that case, if you have term insurance, your family will not face financial hardship.

What should be the sum assured?

According to experts, term insurance cover should be at least 10 times your annual income. In addition, if you have a debt or debt, it should also be considered.

Depending on the situation, choose the right term plan

When buying a term insurance plan you should keep in mind the age and term factors. To prevent inflation from disrupting your family's lifestyle, you can get more insurance cover. Remember, if you don't value inflation, it can put your family in more trouble. In addition, when assessing the sum insured, sources of income, current debts, and liabilities, dependent family members, expenses incurred in maintaining their current lifestyle, children's higher education, their marriage, etc. Should be placed in

Life insurance must be taken with the MWP Act

It is also possible that the sum insured is received by a relative or spouse from whom he or she has taken a loan or borrowed. To avoid these situations, the insured must take out a term insurance plan under the Married Women's Property Act, 1874 (MWP Act). A term policy taken under the MWP Act is considered a trust. Only the trustees are entitled to the amount of the policy benefit. In the event of a death claim, the trust receives money from the policy, which can only be claimed by the trustee. No creditor or relative can claim it. The trust maintains the claim amount for the spouse and/or children.

Who should buy Term Insurance?

Every family earns. The member should purchase term insurance as soon as the income starts. The premium is lower at an early age and there is no change in the entire policy term. So one should buy it at an early age to avail of the low premium. If you are not able to get term insurance at an early age, you can still buy it.

When to buy Term Insurance?

The sooner you take out term insurance, the better off you will be. The premium amount will increase as time goes on. So if you want a cheaper premium, buy insurance as soon as possible. Typically, term policies are for 10, 15, 20, 25, and 30 years.

What is Term Insurance?

Term insurance is a type of life insurance policy that provides coverage at a fixed payment rate for a limited period. If the insured dies during the term of the policy, the amount of death benefit is paid to the nominee. It provides financial security to the family in case of uncertainty or death.

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