In a life filled today, where everyone is surrounded by sickness and uncertainty. At the same time, people resort to term insurance to face these uncertainties.
If you are planning to take term insurance too, then take care of some things. Before taking any term plan, make sure to get information about the amount of cover, policy term, premium etc.
1. Amount covered
The most important task is to choose the amount of cover before buying term insurance. How much minimum cover a person needs depends on the person. But according to the thumb rule, employed people should take 10 times their annual income. Also, it should be kept increasing with increasing income. You can also calculate the amount of cover online. There are many online tools available in which you can calculate the amount of cover according to your income, occupation.
2. Policy Term
Choosing the term of the policy is the second most important task in choosing a term plan. If you are taking a policy at a young age, then choose the longest term policy. This will also give you a chance to buy a policy at a lower premium.
3. Online or offline shopping
You can purchase a term policy through an agent or online. If you do it directly through the company website or the aggregator website, then you may also have to pay a lower premium. At the same time, a higher premium will have to be paid if taken from an agent.
4. Company Selection
Before purchasing a term insurance policy, it is very important to choose a good company. Before taking the policy from any company, check its claim record ratio. Also, know the financial position of that company. Along with this, keep in mind the service, payment methods etc. of the company.
5. Rider’s Choice
Even after the term plan, there is also a possibility that the policy holder may become a victim of disability due to an accident or he loses his hearing. In such circumstances, rider should also be taken for financial security. However, for this you have to pay additional premium.
Why term insurance is important
Posthumous family financial security
Helpful in saving tax
Additional benefits in case of critical illness, accidental death
Types of term plans –
Pure term plan
Return on Premium Term Plan
Term plan with income benefits
