It is a wonderful feeling to share your life with your partner, isn’t it? You make promises to be together through thick and thin. And, the best way to keep your promise is to gift your partner something that would make the feel secured even when you are not around, i.e., you can gift them a term plan. Read on to know more about.
When you think of gifting something to your partner for a special occasion, you may inevitably think of an expensive jewellery set, a trip to their favourite holiday destination, or a luxury watch. But, how about gifting them something even more important and something unique that they could remember you for life. We are talking about giving them the gift of financial security with a robust term plan. It will be a thoughtful gift that will surely be appreciated even when you are not around.
If you are recently married or about to marry soon, it would be perfect opportunity to add your partner’s name in your term plan. After all you both promised to look after each other and share the joys and sorrows together. Then why leave them behind in life insurance policy.
How will your partner benefit from a term plan?
The primary purpose of a term plan is to offer financial security to the family in the event of the policyholder’s untimely death. So, in case anything happens to you, and if your partner is financially dependent on you they may face several financial hassles, and if you have any liabilities the burden may fall on them.
You wouldn’t want to your beloved partner to face such hardships, would you? The best way to deal with this to gift your partner perpetual happiness and financial security is to add your partner to your term life insurance policy. You can add your partner’s name to your existing policy or purchase a new policy at an affordable premium.
Adding the partner’s name to the existing policy may be beneficial for non-working partners as they don’t have an income. However, if both of you are working and have dependent family members, then buying an individual term policy will be a better option. The death benefit received from the policy can help the dependents meet their regular expenses and deal with the liabilities (if any) in a better manner.
Important factors to consider while gifting term plan to your partner
First and foremost, you must be prudent with choose the coverage amount. Most insurance experts suggest the sum assured must be at least 15 times your current annual income. So, suppose your current annual income is Rs. 10 lakhs, going by the thumb rule, your term insurance coverage amount must be about Rs. 1.5 crore.
The next thing you must need do is to assess your family’s needs. Do you have any liability like a car loan, housing loan, etc. Based on your current lifestyle and liabilities, you may want to choose a policy with a higher cover.
Another important factor to consider is the inflation. The current value of your investment could reduce in the future due to rising price of the goods and commodities. So, you must account for the inflation and choose the right policy that could give your partner and family members sufficient coverage so that they don’t feel the financial pinch.
Now that you are aware of the importance of gifting your partner a term plan, make sure that you choose the best plan for them and secure their financial future.