Buying Term Insurance for the First Time Read This

Deciding on the right kind of term insurance policy and the amount of cover you need have become a lot more confusing.
Buying Term Insurance for the First Time Read This
Buying Term Insurance for the First Time Read This
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The life insurance sector has transformed drastically. Insurances are getting more aligned to the modern-day needs of their consumers. They are offering more products which means there are a plethora of options. Deciding on the right kind of term insurance policy and the amount of cover you need have become a lot more confusing. So, when you face a dilemma about the right cover for the best term plan in India, the following tips will come in handy.

Term insurance is a simple life insurance policy available. In the event of any accident during the term period, beneficiaries receive a death benefit. It is ensured that policy amount will take care of everything and so given an assurance for financial stability. Moreover, these plans are less expensive compared to others.

Important Features Of Term Insurance

When planning to buy the best term insurance plan, you should be aware of the many features available for different types of insurance that can help you choose the most suitable plan. Knowing these things before you make a purchase allows you to make an informed decision, and ensures that you keep yourself and your loved ones optimally secured:

  - Total sum assured: The total sum assured includes the sum nominee receives after insured person dies.

  - Age restrictions: Any person who are between 18-65 age group are eligible to get the policy.

  - Maturity age: Maturity age a period when the policy will expire. Most of the systems ideally provide maturity age for 75-80 years.

  - Polity tenure: Generally, tenure is a duration for the policy. For example, if your age is 60 years, you can enter the term insurance policy that provides for 80 years. Now you have the tenure for 30 years. A tenure plan ideally should be between 10-40 years. It would help if you always chose the maximum tenure the company can allow to your age.

  - Claim settlement: You must always choose an insurance company who pays higher claim settlements when purchasing a term insurance plans. Moreover, the ratio shows the percentage of claims that insurance provides.

  - Additional benefits: The insurance cover is made helpful by several additional benefits. For example, when you select a plan that have features of an accident death rider, you can also receive an additional sum of 25 lakhs because of the accident under it.

  - Health checkup: When you are applying for an insurance plan, it is mandatory to go through certain health checkups. You need to undergo some mandatory blood tests.

Mistakes To Avoid While Purchasing A Policy

As investing in insurance is an important decision, it is important that you avoid any mistakes. For the same, you must:

  - Take premium rise positively: When you purchase an insurance plan, the crucial step is to understand that your premium can increase after you receive medical checkup. Company might ask for a rise in premium because of health issues. Use term plan comparison to get a better idea.

  - Presenting all the facts: Make sure that you transparently present the facts. You must include all the necessary documents. The premium will be calculated based on these facts. Hiding results in the rejection of the claim. Hence it is mandatory to fill all the required forms.

In addition, you must keep a few important things in mind while purchasing your policy, such as:

  - Better start gives a good plan: No particular age for purchasing a term insurance. It is always advisable to start early. As your age increases, the premium amount increases, becoming a challenge for you. 

  - Understand the importance of add-ons: Riders are fantastic addition to the term insurance policy. However, you should select the add-ons only when you seriously need them. You should not just fix them as company is providing them and they offer higher security.

  - Claim settlement ratio: Before you invest in the best term plan in India, you must check the claim settlement ratio of the insurance company. CSR suggests the total amount of claim paid, against the number of claims raised by policyholders. The higher the CSR, the more claims have been settled by the company – which also means you can be ensured that if anything happens to you, your loved ones can easily make a claim.

Finally, it is good if you bought an insurance plan to secure the future of your dependents. These health financing plans give peace to the mind. In addition, choosing a good insurer plays a vital role when you are selecting a plan. The insurance company you choose must have provide you with the details of the best term plans in India that are available and all the necessary documents for them. 

You must also take into consideration the insurance company’s reputation. It would be best if you thoroughly research and understand details like how long the company has been in business, what types of insurance they provide, the financial strength of the company, types of payment methods available, as well as if online claim processes are available. If you are unsure about the details, you can also contact the insurance provider to get a better understanding.

Author Bio:

Mithilesh Singh is a digital marketing consultant, blogger, and founder of Tech Preview.

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