Reasons why term plans are the best option for single financial providers

Families come in all sorts of different shapes and sizes, and no family is truly alike. With their variety of needs, priorities and responsibilities, every family has a certain uniqueness to it. But if there is one thing all families have in common, it is that it is essential to keep every family comfortable, intact and happy.

This responsibility is shared differently in each Indian family. While some families have multiple members who bring home multiple sources of income, most rely largely on a single financial provider. This was shown by Household Survey on India’s Citizen Environment & Consumer Economy conducted a few years ago. While 40% of Indian households have multiple earners, as many as 60% have only one financial provider ^[1].

This can leave sole-earner families in a somewhat vulnerable position. In the unfortunate event of the demise of the sole earner, the family can find themselves confronted by a dire financial emergency. That is why an increasing number of single financial providers in India are opting for term insurance plans. Through these term insurance plans, families of the policyholder are guaranteed financial coverage in the event of his or her demise. As a result, the future of his or her family members is always safeguarded. 

If you too are a single financial provider for your family, here are the primary reasons why you should consider availing a beneficial term insurance plan:

1. Provides extensive coverage:
   Term insurance is especially relevant to single financial providers due to its guarantee of sizable coverage, unlike in traditional insurance plans.
   This is because term insurance can provide your family with the much-needed financial umbrella of an extensive coverage for a duration or ‘term’ of your choice. If you unfortunately pass away during this term, your family will receive a death benefit. This death benefit can be in the form of a lump sum or regular income payments. In either case, term plans are certain to provide ample financial aid to your family so that their futures can be secured and they can rebuild their life and finances in your absence.
2. Protects your family from liabilities:
   The Household Survey on India’s Citizen Environment & Consumer Economy revealed another interesting fact about sole-earner families. They are more likely to rent a house than buy one, and less likely to be satisfied with the stability of their finances [1].
   
   If you are the sole earner in your family, this might be your reality too. It is also possible that in order to provide for your family’s needs, you might have made several investments as well as availed certain types of loans. For instance, you might be in the process of paying off a home loan. Or, to help your family with their errands, you might even be paying off a car loan. You might have planned these loans out for the future and adjusted them with your regular income structure.
   
   However, in the event of your sudden demise, all these expenses might become liabilities to your family members. Rent, loans and investments might end up becoming a monthly financial burden that your family might not be equipped to manage. In such a case, the benefit from a term plan can step in and help your family take care of these responsibilities gradually and efficiently.
3. Cheaper premiums:
   There are a number of insurance products in the market, and in order to protect your family’s future, you might consider availing life insurance right now. However, the unfortunate case with most traditional life insurance plans is that their premiums tend to be incredibly high. As the financial provider of your family, you might find that these premiums can take a heavy toll on your budget and thereby, your family’s monthly expenses.
   
   To help your family avoid suffering under these heavy premiums, term plans emerge as the best insurance options available on the market. Premiums for term insurance plans tend to always be considerably cheaper than traditional life insurance plans, making them a good option for people from all economic backgrounds.
   
   Moreover, compared to traditional life insurance, the value of the coverage provided to beneficiaries is much higher and worth much more for a term plan. This is especially true when you consider the minimal amounts that one contributes towards term plan premiums. To know more about Term Insurance browse the website for various Term Plans offered by PNB MetLife.

As the single financial provider of your family, the responsibility of securing their future falls on you and you alone. However, handling this responsibility doesn’t have to be difficult. With the aid of term insurance plans, the process of looking after your family’s future finances can become simple, convenient, economical and reliable.

The income tax is levied on all earning individuals who fall under a taxable income bracket. The income tax is paid to the Government of India and is charged annually. However, there are several tax deductions and exemptions that you can claim to lower your tax liability. The Income Tax Calculator helps you ascertain your tax output for a financial year based on your taxable income. This can help you plan well and save tax using the tax-saving deductions and exemptions, if possible. 

References:
1.https://www.livemint.com/Politics/5eDYPGMword7Lx6sitUR3L/Are-singleearner-families-different-from-others.html

Sources:
https://www.moneycontrol.com/news/business/personal-finance/sole-breadwinner-here-is-how-you-should-manage-your-money-918909.html
https://www.policybazaar.com/life-insurance/term-insurance/articles/term-insurance-and-its-benefits/