Why should you take Life Stage Benefit when choosing a Term Plan? | SBI Life
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Why Should You Consider Life Stage Benefit When Choosing A term Plan?

Insurance Basics & Financial Advice Term life insurance policy can help you stay safe from the predicaments of life. It takes care of your family’s needs should any tragedy befall you. It provides an assured payment to your nominees in case of your death which they can use for their expenses.

Why Should You Consider Life Stage Benefit When Choosing A term Plan?

7 Minute |

Life Stage Benefit

Term life insurance policy can help you stay safe from the predicaments of life. It takes care of your family’s needs should any tragedy befall you. It provides an assured payment to your nominees in case of your death which they can use for their expenses. This sum assured remains the same throughout the policy. However, over time, your responsibilities increase, and so do your costs. Apart from that, you also need to take into account market inflation and the rising cost of the necessities. Hence, a sum assured at the time of purchase might not be sufficient 10-15 years down the line.

What is a life stage benefit option in term insurance?

The life stage benefit works under the model of “One size DOES NOT fit all,” that is, the initial coverage of your term plan cannot cover all your life stages. 
 
The life stage benefit option adds flexibility to your life insurance plan so that to accommodate your growing needs. This unique feature enables your insurance coverage to adapt to your life goals by bumping the sum assured at crucial stages of your life. Besides, this benefit does not require you to bear extra costs or a high premium.

How do your insurance needs change at every stage in life? 

Life insurance policies are meant for covering your long term and short term goals. The life insurance needs for bigger responsibilities are typically higher than those of the smaller and near term goals. As time passes, the responsibilities increase and the sum assured that you had selected years ago, where the scenario was completely different starts to seem inadequate.
 
For instance, you purchase a term insurance plan as a career fresher. For now, the coverage will be more or less adequate for you. Eventually, you settle down and look for buying your own house. After a few years, you will have to take care of your children and provide their school education. Later, you will need to finance their higher education. 
 
Thus, the sum assured initially would likely not be enough to cover all these expenses. As a result, the insurance needs at every stage of life is different from the last.
 

Why do you need to opt for the life stage benefit?

 

As seen above, the insurance needs at different stages for life are different. However, it may not be feasible for an individual to buy new policies as their financial needs increase. To save yourself from the hassle of purchasing new policies at each critical stage, you can opt for thelife stage benefit option in term insurance. The policy coverage increases for a certain percentage at crucial stages of your life as per your needs. The assured sum will thus increase. Hence, you should opt for life stage benefit option in your insurance plan. 
 
Be prudent while purchasing a term plan and thoroughly examine all features and benefits attached to the policy. Opting for a life stage benefit feature will reinforce your coverage and your family’s financial security. You can avail all the benefits of life e stage option while still paying an affordable premium for your insurance!
 
 

 

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