A simple guide to identifying the right term insurance plan for a secured future
At a young age, you don’t think about your future and tend to ignore the uncertainties in life. However, as you move ahead in life, more responsibilities come in your way, and you need to have a back-up plan to manage all of them.
The back-up plan usually comprises financial planning for your family in your absence. In this context, a term life insurance plays a crucial role. It is a vital tool to protect your family’s future financially when you are not with them as it offers a lump-sum insurance coverage amount enough for your loved ones to lead a comfortable life. Most of the term insurance policies provide customised solutions in the form of life coverage, tenure and premiums based on your requirements. So here is a simple guide with some general queries that can help you to identify the right one for yourself.
I want a pure protection plan: If you are looking for a plain life insurance policy, then you should opt for a plan that offers your family a lump-sum amount after your demise. The sum assured amount of the life insurance policy should be 15-20 times of your annual income such that your policy pay-out amount is sufficient for your family to manage their regular expenses without compromising on their lifestyle.
I am looking for an affordable life insurance policy: There are ample of term insurance plans available in the market. Many people think that expensive premiums mean better insurance policy and insurances with low premiums does not offer enough benefits. But that is not the right way to select a product. While it is advised to opt for a product that is competitive in pricing, offers enough benefits and substantial coverage amount at affordable premiums; however, you should choose an insurance policy based on your requirements and feasibility.
I want to choose the insurance pay-out method: Selecting the insurance coverage pay-out option is as important as buying the right term insurance plan. The sum assured pay-out should be based on your family’s needs and requirements. Certain insurance providers offer a lump-sum pay-out, monthly or partial pay-out options. So, before you shortlist the right life insurance for yourself, it is equally essential that you carefully choose the insurance amount pay-out option, suiting your responsibilities. For instance, after your demise, it would be ideal if your family gets a monthly income along with the sum assured. As in that case, your family will be able to continue with their normal lifestyle.
I need an accidental cover along with my insurance policy: You should get an accidental coverage along with your base policy so that in case of any mishap you don’t lose out all your savings. Though it will cost you a little extra, it adds a significant benefit at a relatively low cost. An accidental benefit protects you against several uncertainties like road accidents by offering your family add-on benefits in addition to the lump-sum amount.
I want to be insured against critical illness as my family have a history of serious ailments: Health Insurance only covers your hospitalisation costs based on the actuals. It does not offer any coverage against critical illnesses which usually are very expensive. Therefore, if you have a family history of critical illnesses such as cancer, then you should get financial protection against such diseases in the form of a critical illness rider.
For what reason should I pay high premiums when I am close to my retirement age: It is practical to protect your savings as you move closer to your retirement age. If you think that your healthy lifestyle will keep you secure, away from all uncertainties, then you should look for a plan that will enable you to change your premiums as you age. For instance, if you are young and unmarried, then it is advised to pick a term plan that additionally permits you to expand your insurance coverage when you get married or have children. On the same line, an ideal insurance policy will allow you to decrease your premium when your dependents become self-sufficient, and no more needs your support.
Experts suggest that you should choose a term life insurance as per your needs and requirements. However, it will help if you also analyse various aspects of a term plan to make a wise buying decision. Buy term insurance policy that offers complete financial security to your family in your absence and during distress. If you want to get free quotes and compare multiple term plans, then you can visit BimaKaro.in and buy the right one for yourself from top insurers in India.