Q. I am 30, a single mother of two. I earn ₹85,000 a month and have a mortgage on my home. I have no savings. I want to make sure my children are taken care of financially, now and in the future. What type of life insurance policy would be best for me?
In your situation, a term life insurance policy is the most appropriate. It provides coverage for a specific period and pays out a death benefit to the beneficiaries if the insured person passes away during the term of the policy.
A term life insurance policy can help ensure that your children are taken care of in the event of your death. The death benefit can be used to pay off the mortgage on your home, to take care of the children's educational expenses, and to provide them with a source of income to support their daily needs. Of course, the death benefit amount must be sufficient to cover all these.
Please consider purchasing a policy with a coverage period that matches the duration your children will be financially dependent on you.
Add riders
Riders are benefits or features that can be added to a term life policy to provide additional coverage or customization options beyond the basic coverage. Riders are optional and typically come at extra cost. You may want to add some of the common riders to your policy.
Accidental death benefit rider: Additional benefit in case the insured dies in an accident.
Critical illness rider: Pays out a lump sum if the insured is diagnosed with a critical health issue like cancer, heart attack, or stroke.
Waiver of premium rider: Waives pending premium payments in case the insured becomes disabled and is unable to work.
Disability income rider: Pays out a monthly income in case the insured becomes disabled and is unable to work.
You should research and compare various term life insurance policies from reputable insurance providers to find the one that best meets your needs and budget.
Please consult a financial advisor who can help you decide the appropriate coverage amount and policy duration based on your financial situation and your goals.
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