And to avoid those challenges, you can opt for a suitable life insurance plan. Use an insurance premium calculator to ensure that the chosen insurance plan is apt for you. With an appropriate life insurance plan, your loved ones will be financially afloat in case you are not around anymore.
The sum assured payout would enable them to cope with the loss financially. They will not have to make changes to their lifestyle if they have sufficient funding. And a well-chosen life insurance plan helps in ensuring that.
So, make haste and use an insurance calculator to finalize a life insurance plan that fits your requirements. Moreover, once you use the insurance premium calculator, your buying decision will become easier since it will also help you compare the available plans.
When you use an insurance calculator, you will need to fill in some vital details. These details include your name, age, gender, income. You should consider these details as they will help you determine your sum assured amount. Plus, it is vital to opt for an adequate sum assured as it will help you take care of future financial requirements like:
1. Child’s Higher Education
When you have a child, you will realize that it also adds immense responsibility with joy. And as a parent, you will do everything in your power to make sure that your child gets the best of everything. Especially when it comes to education, you will not want to leave any stone unturned and even opt for various types of investments.
However, if an unexpected situation takes place in the future, your family might not be able to cope with the loss of the sole breadwinner. During such events, your child might have to let go of their dream university to support the rest of the family. The cost of higher education, especially in abroad, is increasing multifold. Thus, if you want your child to avoid these challenges, you should plan better now. Use an insurance premium calculator after charting out the education expenses to secure your child’s future.
2. Keep up with the Living Costs
In our country, the rise in living costs is another problem that your family might face in the future with a regular source of income. They will then have to change their way of living and make compromises.
However, if you take these costs into account and use an insurance premium calculator to find a suitable plan, it will benefit you. You can also choose your family to get a single payment or periodic payments. If you choose the single payout option, your family can use the money for further investments. And if you choose the periodic payment option, it will substitute as a steady income for them.
3. Financial Independence for Family
One significant benefit of opting for life insurance now is that the accumulated financial corpus will enable your family to live independently. They will not have to depend on anyone for anything.
Moreover, in case of your absence, they will be able to fulfil your dreams and goals in life. The financial aspect will not be the reason that will hold them back in any manner. And to ensure this, proper financial planning is vital from your end. Make sure to use the insurance calculator to get the correct estimates. You can enable your family to stand with their heads held high even with you not around!
4. Repay Loans
You may take some loans to achieve your short-term goals. They might be a part of your financial planning. But with you not around, the responsibility of paying these loans would fall on the shoulders of your family.
If your parents are dependent, the sole responsibility will fall on your spouse and children. Repaying those loans can be challenging and might put your family in a difficult position. To avoid such situations, it will be wise to add these to your list and use the insurance premium calculator to chart the financials.
Not unlike the above financial requirements, you should consider other situations like accidents, critical illnesses, and others. Imagine, you get into a road accident that leaves you disabled. A survey records that India accounted for six percent of the total global road accidents. So, it will be wise to think about these situations to prepare beforehand.
You can opt for a life insurance policy that enables you to add an accident disability. When you opt for it and use the insurance premium calculator, you will find that you may have to pay a higher premium. However, note that this rider will provide you with a monthly income if you cannot work due to the disability caused by the accident. There are many similar riders that you can look into and use the insurance calculator to evaluate your premium and finalize a plan. However, before choosing any plan, you should read the policy wordings thoroughly to make no mistake!