If you are a self-employed person, you need to buy a term insurance plan. Term insurance will protect you and your family in several ways. As a self-employed person, you may not always have a fixed salary. You also have several loans and other liabilities. Taking a good term insurance plan can help you to stay financially secure. Also, if anything unexpected happens to you, your family can stay safe against the financial problems that may crop up. Read on to know more.
Reasons Why Term Insurance is Needed by a Self-employed Person
- To Protect the Family
A self-employed person works very hard to support his family. This is the reason why he needs to ensure that even after his demise his family stays financially protected. If you are a self-employed person, get a term plan at the earliest. You will be able to protect the economical wellness of your family members and you can do so in an affordable manner. The term plans are inexpensive and so you can buy a suitable cover without any financial stress.
- To Protect Debts
The next reason why you need term insurance is to cover your loans and mortgages. You may have a home loan that you are still repaying. After your demise, your family can use the death benefit received from the term plan and clear the loan. This will ensure they always have a roof over their heads. Also, if you have mortgaged any personal assets for your business needs, you can protect them with a term insurance plan.
- To Protect Business and Income
After your demise, your family may need additional resources and funds to keep your business running. If they get the sum assured from the term plan, it will become easier for them to keep the business running. Else, they may even have to shut the business or sell it off, something that you never would want to be done.
These are some important reasons why you need to buy a term life insurance plan if you are self-employed.
The Process to Buy Term Insurance for a Self-employed Person
If you are looking to buy a term life insurance plan as a self-employed person, you need to follow the steps mentioned below:
Evaluate Your Needs
First and foremost, you need to evaluate your needs. You need to see how much coverage your family needs. This will help you to choose the ideal cover with which you can comprehensively secure the financial needs of all your family members.
- Fix a Budget
You also need to fix a budget and see how much money you can keep aside each year to pay the term insurance premium. The plan you buy should match your budget and you should be in a position to easily pay the term insurance plan premiums as and when you need to do so.
Once you know what you need and how much you can pay for it, you need to get on to the process of actually buying the term insurance policy. Start off by comparing the available options. You can easily do so online in a matter of a few minutes. When you compare, you can quickly and easily locate the best plan at the best rate.
- Fill the Form
After you compare, you can proceed to buy the plan. You can do so online in just a few moments. Fill the application form. Read the policy wordings carefully to ensure the term plan you choose has all the covers you require. Fill the form and be completely honest. Do not make any mistakes at this step as doing so can cause many problems later on.
- Submit the Documents
The list of documents needed is carefully mentioned on the website from where you buy the term plan. The documentation process is very simple for term plans. You will just need some basic KYC documents, photographs and bank statements. Submit them and you will be one step closer to getting your term insurance plan.
Pay the Premium
And finally, pay the premium online and you will have the policy with you instantly.
The process of buying term insurance is actually very simple. Get the best term life insurance plan at the earliest if you haven't done so already. You can also buy a term insurance plan offline, through an insurance agent.