When should we quit the term plan?
We are pursuing a term insurance plan because we do not want our family to suffer financially. The need for survival is fulfilled by a term plan for which we take a term plan. The need exists until the date when you are the mainstream of income.
It seems like every day someone is trying to get you to buy something, telling you all the reasons you should, but nobody ever tells you why and when you should stop. So in this article, I'm finally giving you an answer to this question that everyone needs to know When to Stop and Why to Stop
1. If you have more money in the bank than insured money,
2. IF YOU ARE NO MORE THE MAIN EARNING PERSON OF YOUR FAMILY.
3. IF THERE IS NO DEPENDENT.
4. WHEN YOU DO NOT HAVE ANY LIABILITY
IF YOU HAVE MORE MONEY IN THE BANK THAN INSURED MONEY.
You are doing insurance due to the instability of income after the policyholder's death, but here you have the desired amount that can generate cash flow after the death of the policyholder. In this case, instead of doing a term plan, you can stop it and take a sip of that amount.
Now I am going to tell you a story for your better understanding.
Mahesh is a distributor for a company that earns $30,000 per month. At the age of 24, he purchased term life insurance with a $1 crore benefit. He has been paying 6,000 rupees as a premium; now his age is 45 years, but he already has 1 crore. He had 20 lakhs saved in his bank, but after selling the land he got around 80 lakhs, so now his savings account is 1 crore, besides his other investment. When he went to a financial advisor and asked about different investments, his advisor told him to stop using the term "insurance plan" and tell them about different ways to invest.
Advisors tell him he can invest that premium amount in
1. A pension fund until 60
2. A pure equity fund until 60
3. Invest in ETFs until you're 60.
But first, you should consider how your income will be generated if you are not working or are absent. For that, you have to invest that money into different FDs from your nominee account. As you had chosen your wife as a nominee and your wife is a homemaker, you should invest 1 crore into other PSU banks and post offices as an FD, which will help you earn $30,000 at a 4% interest rate. But this income has tax implications, so invest some money into the wife's pension fund and PPF for tax savings. You can invest the funds until they are no longer needed. If you do not invest that money, then your wife has to pay some taxes.
IF YOU ARE NO MORE THE MAIN EARNING PERSON OF YOUR FAMILY.
When you retire from your job or your children become the primary source of income, the earner has changed, and you are no longer the primary earner, so you should stop paying the term plan premium.
IF THERE IS NO DEPENDENT.
When I was growing up, I was the only girl in my family that had a job. My parents raised me to be independent and strong-minded, and I felt proud to be able to contribute to the household income. After I got married, my goal for the future changed and I decided to quit my job. However, even after my parents passed away, I quit the term plan as the goal changed.
WHEN YOU DO NOT HAVE ANY LIABILITY
A young person is dependent on their parent; now that the child is 16, he has paid a $6,000 premium and should stop paying the premium until he is an independent adult and his family is dependent on him for income. We should understand that insurance is for protecting your family's income after the insured person's death; that is the main aim of insurance, not the money.
FAQ
1. What happens if I have taken term life insurance at a job and later lose the job?
Ans: There's nothing to worry about until you pay your premium on time. When purchasing an insurance policy, you must provide accurate information.
2. Can I cancel my term plan at any time ?
ANSWER: When you buy insurance, you get a 15-day free look-up period during which you can cancel the plan; otherwise, you may not pay the premium and the policy will expire.
Other wishes once your policy is completed 3 years, different exit options are provided by the insurance company.
3. How long should we keep the term plan?
If you want the number, I'll give it to you until the age of 60.
As stated previously,
1. IF YOU HAVE MORE MONEY IN THE BANK THAN INSURED MONEY.
2. IF YOU are NO MORE THE MAIN EARNING PERSON OF YOUR FAMILY.
3. IF THERE IS NO DEPENDENT.
4. WHEN YOU DO NOT HAVE ANY LIABILITY
Looking above, you should think about it. Goals are important, not money.
4. Should I purchase a term plan?
Answer: If you are the primary earner in the household, you must purchase it.
5. Do we get any returns in the term plan?
ANSWER: Yes, but only after the policyholder died and the claim was processed.
6. What is the ideal age for term life insurance?
ANSWER: There is no such age, but you should start a term plan as soon as you become an earning member of your household and have dependents.
7. What is the cheapest insurance plan?
ANSWER: The Pradhanmantri Suraksha Bima Yojana, which costs Rs. 20, covers Rs. 2 lacks for accidental death and Rs. 1 lakh for partial disability, while the Pradhanmantri Jeevan Bima Yojana, which costs Rs. 436, covers Rs. 2 lacks in the event of the insured's death.
8. what happens to term insurance at the end?
ANSWER: BE HAPPY that you are successfully fulfilling your responsibility. in behalf of your premium it ends its power at the end.After the insured person's death nominee gets the money.
Pritam Manna, the author, wishes to be aware of the concept, which is why I am writing.
Thank you for your valuable time.
waiting for your valuable replay
0 Comments