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Term Insurance 1382 views February 11, 2019
As More number of people are preferring to buying term policies above others owing to the low risk and low premium charges involved. However, it is important to consider other necessary factors before zeroing on your choice of term insurance plan.
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Term insurance plans in India are many with each proposing maximum cover at affordable premium rates. With the rate of inflation increasing each year and lifestyle diseases becoming more pervasive, it has become imperative to get oneself insured. A term insurance policy with an adequate life cover protects against unwarranted economic crisis by promising a sum assured to the dependents in case of the sudden death of the insured (or policyholder) during the term policy period.
However, choosing the best term insurance plan can be tricky as many people are not aware of factors that govern choice the best term plan that would financially protect their loved ones in the event of unexpected demise. For those looking to financially secure their loved ones, it is important that you move beyond comparing premium prices to choose the best term insurance plan to ensure that your loved ones stay protected. A term policy with the lowest premium rates may not always be the right choice of term insurance. Each term policy has its own set of pros and cons, and hence there are other factors that most people would like to consider before allocating a portion of savings to the payment of term insurance premium.
With so many details doled out by insurance companies regarding features and pricing that the most important factor, viz., coverage tends to get overlooked in most cases. It is important to gauge the level of coverage that would suffice the needs of your dear ones. This can be done after adding all existing savings, deducting necessary savings and considering possible expenses in the future. Also, the nature of lifestyle that your dependents are accustomed to coupled with increasing inflation rates must also be kept in mind while deciding the amount of life cover that you are opting for.
The term of the policy is an important consideration in the determination of term insurance premium. Apart, the right policy period is important. Term policy of a very short tenure may defeat the purpose of taking term insurance, while opting for a very long policy period may result in having to pay too many premiums. Since a simple term insurance policy promises only death benefits, it is important that you choose it in a manner that it is valid through your old age and is in force at the time of your demise.
All the money that is spent on advertising and public relations goes a long way in creating the brand image of the company and retaining it. Do not ignore value as the ability of an insurance company to settle claims and pay its consumers is also an important deciding factor. After all, what would be the purpose of buying a term insurance plan if your insurer would be reluctant to settle the claims in favor of your nominee(s)?
The rupee seldom appreciates, thus, forcing markets to assume an inflated tone. Prices rise making it difficult to meet all needs. Moderate savings today may not be enough for your nominees to meet their needs in the future. Hence, the necessity to consider inflation before deciding the quantum of life cover. For this, opting for an increasing term plan or a term insurance policy with a high sum assured may be helpful.
Does your choice of the insurance company have an online presence? Though traditional methods of buying insurance do exist, choosing the online mode for buying a policy costs much less than purchasing any term policy through agents. Also, an online presence would enable you to compare the same with term insurance policies sold by other insurers too.
The definition and purpose of term insurance are not limited to claiming death benefits alone. With insurance companies in a constant innovative mode, one gets to see many of them offering additional benefits including accidental death benefit rider, accelerated death benefit rider, accidental disability benefit rider, critical illness benefit rider, and premium waiver rider.
The purpose of paying for term insurance is simply protection for family and loved ones. It is important not to confuse it with other investment options in the market. With a plethora of insurance policies available on the internet, it is not difficult nowadays to choose a term insurance product suited to your choice and requirements.
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