Things To Remember While Buying A Term Insurance Plan

A Term insurance policy is the cleanest form of a life insurance plan. In this plan, the nominee as per the policy document would get the sum assured amount if death occurs during the policy period. There are different types of term insurance available in the market, some insurers do not pay anything if the policyholder survives in the specified time period, whereas some insurers provide some amount of the premiums if the insured survives in the policy period. These types of plan are popularly known as term insurance with premium back policies, but this will cost more as compared to normal term insurance plan.

The main objective of a term insurance plan is to cover the financial loss that occurs due to the death of the policyholder. In a defined term you can say that a term insurance is a very vital thing for a young married person with young children, whereas it is less vital for an older person who is about to get retire. There are some key terms that a person should consider while buying a term insurance plan.

Height Of Sum Assured: The broad rule of sum assured depends upon the age of the policyholder; if a person is less than 40 years, then the amount of sum assured will be 15 times the annual income, in case of the age between 40 and 45 it will be 10 times of the annual income and last but not the least if the age is more than 45 then the sum assured amount would be 5 times of the annual income of the policyholder. If you have any vital housing loan, then you should go for a credit life insurance plan. In this plan, the insurer will settle the outstanding loan with your bank in case of death. You should also consider that the expenses are increasing day by day, for today Rs.50 lakh would be enough for you, but after twenty years it would not be sufficient for your family. Think upon the sum assured amount by estimating the needs of the future.

Policy Time-Period

The period of the policy depends upon the age of the policyholder. The duration of the policy will be longer if you are young. The time- period of the policy should be equal to the desired retirement age-current age.

When Should You Buy?

You should buy the desired term insurance plan as soon as possible because the plans are getting expensive day by day. Some of you must be thinking to buy it later but what will you do in future when you might contract some diseases which will make it tough for you to buy a term insurance plan for the safety of your family. It is possible that if you have any medical problem, then the insurer will refuse to underwrite the risk. The future is doubtful while the financial liabilities are conventional, and leaving behind a set of debilitating financial liabilities for one's dependants is reckless and preventable.
Should You Acquire Additional Protection By Riders

Riders for an insurance policy is like extra cheese in sandwiches. A pure term insurance provides the sum assured only in case of death. But what will you do in such cases where critical illness and a harsh accident can completely destroy your earning power. In this situation, a Critical Illness rider can provide you the desire financial coverage. These types of riders make sure that the policy holder will get the sum insured amount at the right time in case of any unfortunate situations.




Where Should You Buy

It is obvious that if you have decided to buy the term insurance plan, then you must be looking for the right insurer. You should go through the IRDA site for checking the claims ratios of different life insurance companies. There are many companies which are providing term insurance plan. You should look around for the best features at lowest premiums. There are many companies such as Aegon Religare, ICICI Prudential, Met life, Kotak life insurance and many more which are providing term insurance at lowest rates.

Buy Online

It is advisable for you to buy the term insurance plan online as it saves your money and time as well. The rates of the term insurance plan can be different by more than 50% between numerous insurer. You should do proper research forbuying best term insurance in India. An insurance agent nearby you will likely push you towards those plans where he is getting a higher commission that's why you should shop online for the best term insurance plan in India. There are some reasons that may help you in understanding the benefits of online shopping for a term insurance plan:
You can do the comparison easily by getting free quotes from different companies.
By buying online, you can save your money and time as well.
Insurance companies would arrange medical tests at your home itself.
Less documentation.
Online plans are cheaper as compared to offline.

What Details Should You Reveal?

It is important to provide accurate information on the proposal form of the insurance companies. You should state everything clearly as a single lie can lead you towards the rejection of your claims. You should provide an accurate medical history, income and occupation, and genuine details of your document. It would be better to provide information about another policy that you have currently.

Choose multiple plans

It would be better to purchase two different policy instead of a single one. For e.g, choose two different Policy of Rs. 25 lakh each instead of single one worth RS 50 lakh.

Choose Your Nominee Wisely

The nominee will be the person who will get the sum assured amount after the death of the policyholder. In most cases, the beneficiary(s) are the spouse, parents or children. You can divide your sum assured amount in different percentage among the beneficiaries.



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