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Be 100% Sure When You Buy Term Insurance

IndianMoney.com Research Team | Posted On Tuesday, September 03,2019, 04:39 PM

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Be 100% Sure When You Buy Term Insurance

 

 

If you have dependents you need term life insurance. The insurer pays the death benefit if the policyholder dies within the term of the plan. This money comes handy for your family to lead the lifestyle they currently enjoy. Insurance payouts can be tailored to meet family goals.

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Be 100% Sure When You Buy Term Insurance

Understand the need first

Term insurance is a simple life insurance product which offers financial assistance to the dependent family members, if the insured person dies within the tenure of the policy. There are no survival benefits.

Today, many insurance companies offer cover up to Rs 1 crore or more at affordable premiums. The premium for this cover depends on age and other factors. Term insurance is the best life insurance product to cover your family members financially, in your absence.

See Also: Benefits of Buying Term Insurance Online

How Much Cover Do I Need?

Do you need a sum assured of Rs 25 Lakh or 50 Lakh or even more? Do not pick the cover randomly. Term plans are great as they offer enhanced cover at affordable premiums.

What should be your cover? It depends on your age, yearly income, family size, current loan obligations, household expenses, health care needs, family commitments and so on.

Make use of HLV calculator to determine sum assured. Use IndianMoney.com HLV calculator to calculate how much term insurance cover you need. The HLV calculator helps choose the best term life plan.

See Also: 5 Tips to Buy a Term Insurance Plan Online

Understand the Benefit of Riders

  • Accidental Death Benefit Rider: With this rider, the beneficial nominee gets additional benefits along with the sum assured.
  • Critical Illness Benefit Rider: If the insured is diagnosed with a critical illness covered under the policy, the insurer pays a lump sum.
  • Waiver of Premium Rider: The insurance company waives off all the future premiums, if you are permanently disabled in an accident
  • Income Benefit Rider: If you choose this rider, your beneficial nominee gets a regular source of income, in addition to the normal policy benefits.

Analyze and compare term insurance policies

Make sure to analyze and compare term life insurance policies offered by different insurers. Don’t look just at the premiums of the term life plan. Look at other aspects like key features and benefits.

Insurance companies encourage people to buy term life plans online. Many people believe they are not safe or reliable. The truth is online term insurance policies are cheaper as compared to policies bought offline. You can avail a higher cover and these plans settle the nominee claims.

See Also: 7 Reasons To Buy Term Insurance Online

It is not an investment option

Yes, term insurance is not an investment. It is pure risk cover. Even though term insurance offers tax benefits, it should not be availed only for the tax savings.

Term insurance protects your family from risk. There’s money even on an untoward demise within the term of the plan. There are various types of term insurance plans and you must choose the one which matches your needs.

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