The term insurance cover must be 15-20 times annual income and sufficient to provide for your family on an early demise. For example, a 30 year old professional having annual income of Rs 10 lakhs, may need life cover of Rs 1 Crore.
The insurance cover can be increased as income rises. Although people in India are aware and are purchasing term insurance plans, the figure is still comparatively lower than countries like the US, UK, Singapore and so on.
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A term insurance plan is the most cost-effective and convenient way to shield your dependents financially, in your absence. Some term insurance plans come with an affordable insurance premium of Rs 500-600 a month, for life cover of Rs 1 Crore.
However, the premium depends on several factors like entry age, sum assured and so on. You can upgrade the policy by availing additional riders like critical illness rider and personal accidental rider by paying a nominal amount along with the base premium.
The add-on riders are offered by some of the insurance companies, so while buying a term insurance plan, you must evaluate requirements and then buy the term life policy.
You can customize your term life policy as per changing circumstances like increasing the life cover, availing income replacement rider or other riders like critical illness or accidental cover.
See Also: Term Insurance For Indians
The key to getting high cover at a nominal premium is availing the policy at an early age. You can choose the policy period, the payment mode and the frequency of premium payment. While buying the term life policy, you must also consider factors like inflation, loans and your family’s lifestyle to determine the right cover.
See Also: Best Term Insurance Plans In India
Before availing a term life insurance plan, go online and compare the best term plans available in the market. Read customer reviews on the life insurer before making a decision.
Check important factors like claim settlement ratio, frequency of premium payment, solvency ratio of the Life Insurance Company, additional riders and maximum coverage offered to choose the best term life insurance plans. Avail a term life plan which matches financial goals and is sufficient to cover financial liabilities and offer financial support to your family in case of untimely demise.
See Also: The Ultimate Guide to Term Insurance
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