How to Secure Future Income Sources for Your Family?
In a world where things are altering every minute and every second, and our surroundings are not as safe as they are desired to be, the most important thing we need is undoubtedly our security. Not only our personal security, but our family’s security as well. Our search for complete and trusted security is so high that we do not consider the overall future events and falsely anticipate our future needs.
So, in order to ensure financial security for our families, it becomes very important to consider all possible future events and carefully assess our future needs, especially in our absence. As far as financial security is concerned, there is nothing better than a term insurance to ensure that your family does not suffer in case of any unfortunate event.
So, what are the significant events or phases of life in which we need security or as they call it, term insurance benefits?
* Generally, we begin to think about various term insurance plans after finding a steady source of income
* Then comes marriage and the need for the security of our life partner and the next big event is having children
* From there on everything revolves around them until they are capable enough of standing on their own feet. Schooling, college and higher education are becoming expensive with each day, and your income may not be able to keep up
* We might suffer from illnesses as we age and rounds to the hospital, let’s hope it does not come to that. However, if it does, we need to be prepared
All of us have different needs, and according to those needs, we want to invest in an insurance plan that offers maximum benefits. Few insurers, like PNB Metlife, offer term insurance benefits which allow insured’s family to receive regular income along with the lump sum payment.
While taking a term plan, there are a few things to look for such as premium, insurance cover, claim settlement ratio and age restriction, mainly.
However, the payout option is also an important factor to account for these days. You can select the payout option to make the after-claim life far more convenient for your loved ones. There are primarily four modes of benefit payouts offered by the insurance companies:
* Full Payout as Lump Sum: This option is for those who are looking to get the total payout at the end of the term plan or in case of any unfortunate event. This will enable you or your family to receive a lumpsum amount at the end of the plan, possibly in your old age to support and maintain your financial independence.
* Payout as Lump Sum + Regular Monthly Income: This option is best for those who want a certain fixed monthly income after a certain period and a final lump sum payment at the end of the tenure. This will ensure a steady income for you and your family and still cover old age for both or anyone alive. Ignoring death is not the right thing to do while selecting insurance plans and hence let’s be practical to secure either or both the spouses along with fixed security during the lifetime.
* Payout as Lump Sum + Increasing Monthly Income: This payout option is for all those millennials who have a hectic and an unhealthy lifestyle. It is no news that the common illnesses/diseases per person is on a constant rise. Diseases like diabetes, high blood pressure, polycystic ovary syndrome (PCOS), mental disorders like anxiety, depression have become common. As the list grows, so does the medical bill. Hence, this plan ensures that an increasing monthly income will cover the increase in the bill. To top it up, you will also get a lump sum payment for added security.
* Payout as Lump Sum + Regular Monthly Income till child turns 21: This payout is for all those parents who want to secure their future as well as be able to afford their child’s education. Regular payments till the child turns 21 will provide security and increase your ability to pay for their education or any other emergencies that come in between. In case of unfortunate events, like death of both the parents, the child can still be covered and be able to sustain till he/she becomes financially independent. Along with that, the lump sum will give you an added security.
Be it your old age, need of a steady income after retirement, tackling increasing medical costs or any other costs or even securing your child’s future, the regular payout option offers a dependable solution for all such needs. With a secure regular income, your family members can focus on meeting their life goals instead of worrying about the sources to fund them. These lump sum or regular payout options can provide us a big relief as we move ahead in life.