Important tips for selecting the right Term life insurance
No one likes to think about the eventualities of life, and no one can ever anticipate it. But having a backup plan in case the unexpected happens is always a good idea. And owing to this concern a term insurance policy is a perfect solution. It is an inexpensive and highly beneficial insurance product that you can opt to ensure that your loved ones are protected in case something happens to you.
However, buying the right term insurance plan at the right time is one of the most critical steps, which you need to take to ensure the well-being of your loved ones. A term life insurance plan at a low premium might be just a few clicks away. But with so many insurers and policies available today, you must choose an affordable term life insurance plan that offers the right coverage based on your individual needs.
If you are looking for a term insurance plan to safeguard the future of your family, here are some points that you should keep in mind before choosing a policy: –
- Look for the Right Term Insurance Plan at an Early Age: A lot of people think that being young and in good health, make them safe and secure from all possible eventualities. Hence, they tend to avoid buying life insurance at a young age and consider investing in a term life insurance plan is an unnecessary expense. However, what people do not realise is that getting a term life insurance policy at an early age protects their family’s future and offers maximum life cover at low premiums.
- Compare Term Life Insurance Plans: While buying a term life insurance policy, the low premium aspect should not be the only factor that you should consider. Ensure that you compare the benefits and coverage of different plans vis-à-vis their premiums. Also, always compare term plans based on your needs and requirements.
- Deciding the Premium Payment Frequency for your Term Insurance Plan: Many term life insurance plans have low premiums, and you also have the option to choose between various modes of premium payments. You can opt for either single or annual premium or limited premium payment plans, plans with increasing covers, staggered pay-out plans, or plans where you get your premium back in case you survive the policy term. Every term insurance plan has its benefits to offer – the key is to choose the one that suits your needs and preferences the most.
- Buying a Term Life Insurance Plan Online: When you are choosing to buy a term life insurance plan, you have the option to buy it online. Purchasing a policy online, let you compare several term insurance plans based on their prices, coverage, and other features. And since, there are no middlemen involved; the policies furthermore become more affordable.
- Choosing the Coverage for your Term Life Insurance Plan: The aim of getting the right term insurance plan is to ensure that your family doesn’t have to face any financial hassles in your absence. Therefore, the total cover you choose should be enough to replace your income as well as to settle any outstanding loans you have. A thumb rule you can follow here is to opt for a cover that is at least 8 to 10 times your annual income plus any debts you have. Another good idea is to choose an insurance provider that has a good claim settlement record. This will further ensure that your family will not face problems when putting in a claim for your term life insurance plan.
- Limiting the Premium Term: These days, you also have the option to define the term for which you have to pay the premium. You can choose the right term insurance plan with a limited period term, which means that after a certain period of time, you don’t have to pay any further premium. However, the coverage will remain intact for the entire term defined within the insurance plan. This is a suitable way of availing a term life insurance plan for someone, who is sure that they might not be able to keep up steady premium payments later in life, as their liabilities are likely to increase.
- Don’t Hide Anything: If you drink or smoke or have any health conditions, make sure you disclose them at the time of purchasing a term insurance plan. If you do have any health condition, your premium can be a bit on the higher side, which might be contrary to the concept of a term plan having low premiums. However, in such cases, you can remain assured that there will be no chance of claim rejection when required.
- Don’t Avoid Medical Tests for an Affordable Term Life Insurance Plan: Insurance companies offering a term insurance policy generally require buyers to undergo medical tests. However, if you look hard enough, you will be able to find certain term insurance policies that do not require any medical tests. Results showing that you are in good health can help you avail a low premium for the term life insurance plan. Plus, it enhances your chances for claim approvals when needed.
- Choosing the tenure for your Term Insurance Policy: The tenure of a term plan should not be too long or too short. For instance, buying an affordable term life insurance plan for 15-20 years which would end in your 50s is not of much use. Ideally, a term insurance policy should cover you for the maximum lifespan.
- Choose the Right Riders within an Affordable Term Life Insurance Plan: The right term insurance plan should include relevant life insurance riders that enhance the coverage provided by your term life insurance plan. From disability to an accidental death benefit rider, you should choose it based on your needs.
Overall, a term insurance plan has a lot of benefits to offer. However, you must choose the right term insurance plan to enjoy peace of mind, as your loved ones will be secured, if anything happens to you.