Power couples are on the rise. We see more families where both partners are choosing to climb the corporate ladder. It's a myth that life insurance is primarily essential for single-income households. Well, even double-income families ought to consider term life insurance, and here's why.
1. Children's Dreams
Your children are your joint responsibility, and your children's future goals are dependent on your combined incomes. In case of death of any of the parent, there would be an immediate loss of income which will impact your child's future. Though there is no compensation to the loss of a parent, a term insurance will ensure that the dreams and aspirations of your children do not get derailed, even if you're not there to provide for them. With this safety measure in place, you can be sure your children will continue to flourish and meet their life goals.
2. Maintaining Family's Lifestyle
Your family's lifestyle is dependent on two incomes. Your needs and goals are based on this combined income. You may even have loans and liabilities which count on two salaries to pay off. Naturally, you do not want the family's lifestyle to be affected by one partner's untimely demise. One way to ensure that your family continues to maintain the current standard of living in future as well is to get a term insurance cover that will take care of your family's needs.
3. Critical Illness and Disability Cover
Adding a rider to your term insurance policy can help cover you against specific risks, such as critical illness & disability due to accidents. Depending on your need, you can choose from various riders which can be added to your policy to insure you against those specific risks. With an addition to the premium, you get an additional sum assured if any of the covered risks occur. By planning adequately for such contingencies, you can be rest assured that your family is covered against any loss of income arising out of uncertain events.
4. Tax benefits
Life insurance policies offer attractive deduction of up to ` 1,50,000 on the premiums paid under Sections 80C, 80CC and 80CCE of the Income Tax Act 1961 subject to provisions stated therein. This results in an aggregate deduction of ` 3 lakhs (` 1.5 Lakh each) every year, if both you and your spouse have taxable income and a life insurance policy
5. Term Insurance is very affordable
Last, but most important, Term Insurance is affordable and offers great value for money. Since it is only charging you for covering your risk factors, it offers you a higher sum assured for a relatively low premium. This means that you can be insured for an adequate sum without breaking the bank.
As we see, there are several compelling reasons to opt for term insurance even if both you and your spouse are working. By providing a safety net, it ensures that you have covered every eventuality and that your loved ones are well taken care of every step of the way, even if you are not around to provide for them. A well-planned term insurance policy not only saves you tax, it also ensures your family has the means to live well and achieve their goals. With this worry off your mind, you can both concentrate on succeeding, knowing that your family's financial future is safe and secure.