Are you planning to buy term insurance and want to know what things to consider when buying it? If yes, then you are at an opponent point. In this blog, we will cover everything related to term insurance. So, let's begin.
What is term insurance?
Term insurance is a type of life insurance that provides financial coverage to an insured for a specified period. In case, if a policyholder gets demised, his family will receive a sum assured along with a death benefit. Compared to endowment plans, a term life insurance policyholder will get higher flexibility. He gets an opportunity to get an abundant life at a low premium. It is highly affordable, and one of the best life insurance covers for the people who want a secure life experience.
Things to keep in Mind When Choosing a Term Insurance Plan:
Earlier you purchase this insurance, higher benefits you will get
You only get the higher advantages of the term life insurance if you opt for it as early as possible. For example, if a person who avails this plan at the age of 25 will get more benefits than the person who avails of it at the age of 35. And the downside of this plan is that the premium rates will increase as per the period that means a premium of 25 age persons is lower than the premium of 35 age. If you have any kind of illness, then your premium rate is also high. So, if you are deciding to buy the term insurance plan, then go ahead.
Never Choose Per Day premium:
When you go to purchase a term insurance policy, many life insurance companies mislead you by recommending the per day premium plan. But, they are costly and can disturb other financial plans as well. So, never opt for the per pay premium plan because it is just an advertisement method to catch the customers' attention. So, simply opt for the monthly, quarterly, or yearly plan.
Avoid purchasing single term insurance policies.
There are two types of term insurance policies- single insurance policies or regular insurance policies. A financially stable individual generally opt for the single insurance policies, but it doesn't make any sense. Many agents advise you to buy a single insurance policy, which means a one-time payable plan, never falling in this trap. Because today your financial condition is good, but you don't know about your future. So, it is advisable to opt for regular insurance policies.
Include your add ons carefully:
To boost the performance of the term insurance plans, it is good to add some services. But, never add unnecessary services. Because these things only increase your premiums.
Most of the life insurance companies offer four major riders facilities
If you include additional cover for death due to an accident, the insurance company will pay you an additional amount and the sum assured.
Next is a cover for critical illness, if you add this coverage in your plan, the insurance company will pay a lump sum amount in the treatment.
There is disability coverage in the term insurance plan. In case, if you get disabled in the accident, the life insurance company will wave off the premiums.
The last one is waiving off the plans on critical illness. If you are diagnosed with one critical disease, then the company will waive off your future premiums.
It is advisable to buy a regular version of term insurance.
There are several types of term insurance plans available in the market. But, we suggest you purchase only a basic term insurance plan that comes with death benefits.
We hope this comprehensive guide on the term insurance plan helps you a lot. Always keep these points in mind when purchasing a term insurance plan because they help you to make the right decision.
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