When you run a business, opportunities to invest in new ventures often come your way. To seize them, you may take out business loans from banks or financial institutions, adding to your repayment obligations. Fortunately, your high income usually ensures that these liabilities don’t feel like a burden.
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But, unfortunately, if something happens to you, your family will come under financial stress and could be left to shoulder the financial burden. Hence, buying a 10 crore term insurance can help you safeguard your family’s finances in your absence. Let’s dig deeper into the following article to learn why you need a 10 crore term insurance to secure financial coverage.
What is Term Insurance and Why is it Important?
Term insurance is a type of life insurance that offers substantial financial protection to your family in case a tragedy strikes. With a high coverage amount, a term insurance plan ensures that your family will not come under pressure even when it comes to repaying your outstanding debt. Rather, it will help them meet their financial goals and lifestyle.
So, if you have significant financial liabilities, do not leave them for your loved ones. Buy a 10 crore term insurance plan to get a robust financial safety net and ensure your peace of mind.
Why Buy 10 Crore Term Insurance May Be Justified?
Take a look at the following pointers to learn why a 10 crore term insurance plan is a must-have for business owners or high-income entrepreneurs:
- Income Replacement
Thinking of buying a 15-year term insurance plan, but unable to decide how much coverage amount you should choose to ensure your loved ones are adequately covered? You can make use of the online tool, the human life value calculator, which takes into account your future income, expenses, savings, investments, and liabilities while telling you the right sum assured amount to protect your family’s future. Make sure to factor in all expenses and see if buying a 10 crore term insurance may be justified.
- Debt Protection
Business loans may not be difficult to pay for entrepreneurs because of the exceptional profits they generate. However, if you are no longer there to handle your business needs, your outstanding debts might put your family members in a struggle. To protect them against such risk, it is essential to get a term insurance of substantial coverage so that paying off your liabilities will not be difficult for them.
- Family’s Future Needs
Have you ever wondered who will take care of your loved one’s dreams in your absence? Start building an adequate corpus for them from today so that they will not compromise on their aspirations and dreams in the event of your unfortunate demise.
- Living Peacefully with Inflation
For a high-earning entrepreneur, it may not be difficult to pay the premium for 10 crore term insurance. So, buy this high coverage amount so that your family can deal with whopping medical costs, expensive education, lavish lifestyle, etc., in a seamless manner.
- Peace of Mind
Knowing that your loved ones are adequately covered to counter the effects of difficult days will offer you peace of mind.
Things to Consider Before Opting for 10 Crore Term Insurance
While a large coverage is beneficial, it is not a one-size-fits-all solution. Consider the following things while choosing a plan:
- Age: The younger you are, the lower the premium you will need to pay.
- Pre-existing Diseases: Your chronic illness may influence your eligibility to buy a 10 crore term insurance.
- Purpose of Buying Insurance: If you aim to grow wealth along with covering your life, consider a market-linked insurance scheme or an endowment plan to build an investment portfolio.
- Dependents’ Needs: Consider how many dependents you have and their increasing financial needs.
- Liabilities: Car loans, personal loans, business loans, credit card debts, and other liabilities can be paid off using a term insurance plan.
- Premium Affordability: Consider how much premium amount you can afford for the long–term
- Policy Tenure: The duration of the policy should align with long-term financial needs.
Conclusion
Without a doubt, 10 crore term insurance may sound like something out of the world to you. But have you ever taken into account your loved ones’ financial needs, liabilities, inflation, and more? Once you calculate these factors, you will come to know that buying a substantial coverage amount is a necessity. It is a way to protect your family from business uncertainties and high-risk liabilities. With its support, they will live the same lifestyle in your absence that you have been giving them today.
