Starting a family is one of the most significant stages of life that a person accomplishes. However, with having a family has its share of responsibilities, essentially if there is a sole breadwinner in the family. From marriage to parenthood, there are numerous monetary needs that need to be met. For instance, parenthood is not just giving birth to a child, but fending for the child’s various needs and planning ahead to ensure he/she receives the best of everything. Moreover, spending begins for the child or children from the moment of their birth. Expenses also increase, and there is a sense of responsibility that helps ensure that the child’s financial needs are met. Here we look at some reasons why a Breadwinner needs to take a term policy to ensure peace of mind,
- Life Cover
This is obviously the most important reason for a breadwinner to take a term life insurance plan. Taking a term plan ensures that their dependent’s needs are taken care of in the unfortunate event that the breadwinner passes away. While there is a slight chance of such misfortune, it is always best to prepare for such unexpected events, a Term insurance, can act as an income replacement tool, ensuring the remaining dependents do not have to compromise on their lifestyle and needs. Thus, with a term insurance one can be sure that one’s dependents will not face financial hardships in their absence.
- Ensures the Settlement of Debts
Term insurance can help ensure that in case a breadwinner has financial liabilities, such as loans, these financial responsibilities can be met in case he/she passes away. A term insurance helps prevent the financial liabilities from passing on to the surviving members of the family and ensures the debts are cleared without the family losing their financial security or facing hardships.
- Ensures Dependents Maintain their Standard of Living
In case the breadwinner meets an unfortunate demise, they can be comforted that their dependents have access to basic necessities and a decent standard of living along with resources to ensure their children’s educational needs are met. Term plans can also help ensure that a child or children have enough money to cover major expenses such as higher studies or marriage.
- Adding Riders
Term insurance plans can incorporate additional riders such as critical illness or disability that provide financial coverage in case the breadwinner faces a critical illness or disability.
- Tax Benefits
Term insurance plans provide excellent tax benefits, helping bread-earners attain optimal tax savings on their income.
Term insurance is a must-have for almost everyone with loved ones, and especially for those with children. However, it is important to review, compare online term plans and select the best policy for one’s individual needs.