Forbes India 15th Anniversary Special

How a term insurance can help maintain our modern lifestyles

Protection from the financial impact of losing a providing loved one

Published: Jun 24, 2020 01:49:41 PM IST
Updated: Jul 2, 2020 11:17:20 AM IST

How a term insurance can help maintain our modern lifestyles
       Image credit goes to: Bajaj Allianz Life Insurance

What’s life without dreams and aspirations? Yet, every time we work towards converting these into reality, there is usually a price tag attached. Achieving big-ticket goals used to take a lifetime of saving and investing in the past. So, for instance, in previous generations, purchasing a home of one’s own came towards the end of one’s career, after much scrimping and scraping.

Fortunately, in this era of credit for every reason, we can access loans, which ensure that we can enjoy materializing even our big-ticket goals a lot earlier in life. But the price tag gradually increases with time. Naturally, we tend to meticulously plan and budget for the repayment of such loans, by allocating a portion of our monthly income to the payment of EMI. But what happens when the source of income itself is impacted due to the untoward demise of the bread-earner? Such unforeseen eventualities can completely disrupt life as we know it and set us back, not just emotionally, but financially as well.

The loss of bread-winner results in a reduction or complete cessation of regular income and could also leave the family to deal with large debts if a large part of the loan remains outstanding. As a result, the family may have to not only cut back expenses and live a more frugal lifestyle but also may have to consider liquidating any assets possessed or borrow from friends or family to repay the debt. Dealing with such financial ordeals, in addition to coping with the loss of a loved one, can be extremely traumatic.

Term Insurance to the rescue

While there is nothing that can be done to ameliorate the pain of losing a loved one, there are insurance products that help tide over the financial loss. Term insurance can be considered as a solution for such predicaments, as it provides financial security to our loved ones, enabling them to meet l the life goals we intended to achieve together, irrespective of unforeseen circumstances that may take us out of the picture, due to our unfortunate and untimely demise.  

Though it is the most cost-effective form of insurance and simple to buy, Term Insurance can play a very important role in securing the future of our family members. Ideally, such plans should be purchased after considering various factors such as the extent of expenses required to maintain the current standard of living, all outstanding liabilities, , and financial goals like child’s education etc. Of course, the current level of income will also determine our ability to purchase a Term Plan of a specific sum assured.

How do you choose one

While deciding the extent of sum assured that we should opt for, we must try to ensure that it will help our loved ones to meet their ongoing estimated expenses, as well as fund their life goals. These goals could be in the form of an asset purchased such a home or some other big-ticket expenses like higher education - for which loans are still being serviced. These days, term insurance premium calculators are available online to help gauge the extent of Term insurance required to secure the unique lifestyle and short as well as long term goals of a family and the amount of annual premium payable for such coverage.

Bajaj Allianz Life Insurance Company Limited (BALIC), one of the leading private life insurance companies in India, offers online term plans that are tailored to help financially protect and maintain existing modern lifestyles.

BALIC’s Pure Term Insurance Plan, Bajaj Allianz Life Smart Protect Goal, offers comprehensive coverage with multiple add-ons covers and carefully structured variants to meet unique needs at competitive premiums. The most popular variant of this plan – the Life Cover Variant – comes with features that are suited to meet the requirements of modern lifestyles. In fact, an attractive feature, called Return of Premium, entails receiving the total premiums paid, post deduction of applicable charges towards the policy at the time of maturity, provided no claim is made while the policy coverage is on.

To assure complete protection for the long term, Bajaj Allianz Life Smart Protect Goal Term plan also offer coverages till the age of 99 years, even though premium payment is required for a limited term only. In keeping with the Company’s sensitive approach, it offers multiple thoughtful add-on covers with its term plan, like Accidental Death Benefit, Accidental Total Permanent Disability Benefit, and Waiver of Premium Benefit. In addition, it offers the option to acquire protection from 55 minor and major critical illnesses.

In keeping with its tag line LIFE GOALS. DONE. Bajaj Allianz Life Smart Protect Goal Term Plan also offers variants such as the Child Education Extra Cover Variant, Joint Life Variant, and the Increasing Life Cover Variant, which cater to more specific coverage needs. Most pertinently, to allay concerns of breadwinners during the current contagion, Bajaj Allianz Life Smart Protect Goal Pure Term Insurance specifically states its intent to cover Covid-19 claims*.

During this time of unprecedented uncertainty, Bajaj Allianz Life Smart Protect Goal Term Plan acts as an anchor that keeps our modern lifestyles within a safe harbor.

*Our policy covers COVID 19 claims subject to policy terms and conditions being met Please refer to sales literature available on for complete information on variants.”

Disclaimer: The views, suggestions and opinions expressed here are the sole responsibility of the experts. No Forbes India journalist was involved in the writing and production of this article.