State your terms: Why the self-employed must take term insurance

We present the 3 most important reasons why the self-employed need some form of life insurance, preferably term plans.

Life insurance has become an essential commodity for everyone today. It provides an essential financial cover for the future, protecting you and your loved ones from loss of income due to death or disability.

However, more and more people are turning to term insurance lately. Its affordability notwithstanding, it is a type of life insurance that provides only a death benefit and not a maturity corpus. As a self-employed person, you require financial protection for your business, for yourself and also your loved ones. Term plans can give you the financial security you seek for your family.

The best term plans of 2018 are available for purchase online as online term plans, with minimal processing and easy payment options. Consider the 3 most important reasons to invest in term insurance as a self-employed person:

#1 It is relatively more affordable than other kinds of life insurance.

As a self-employed person with a new business, you are justifiably wary of making expensive investments. You reason that till your business or part-time work generates healthy profits, you cannot purchase expensive but necessary items, like life insurance. But the biggest benefit of term insurance is that it is one of the most affordable life insurance products in India. The annual premiums are quite low, and they are ideal for self-employed professionals who may not wish to buy expensive life insurance right away.

#2 It helps repay liabilities in your absence.

The biggest benefit of the best term plans of 2018 is that they offer a high sum assured (Rs 1 crore and above) as a death benefit. This means that if you were unfortunately absent in the future, your family members would get a really high amount of money from which they can finance their daily expenses. Another benefit is that since the sum assured is quite high, it can help your loved ones repay unpaid debts that you may have accrued over the years. For instance, the corpus can repay unpaid institutional and private loans. Thus, your family is saved from harassment by creditors, and they need not sell the house or other assets to repay the loans.

#3 It pays for children’s education in your absence.

Another key area of expenditure for most households is children’s education. Education costs have been creeping upward over the years, and most graduate and post-graduate courses are quite expensive. Your income supports your children’s education, but their future can be in jeopardy if you are not present in the future. In the face of a missing income, however, the term insurance corpus can comfortably finance their dreams.

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