10 Things to Consider Before Buying a Term life Plan
From Bharti-axalife.com
Being the simplest insurance product in the market, term insurance easily
gains the trust of the consumers when it comes to securing the future of their
family.
But, as a consumer you need to understand that buying a term insurance is
not just paying the premium & expecting your family to be safe for the
future.
You need to understand the product well and most importantly look into a
few aspects before you purchase a policy. This will only keep you safe from
unpleasant surprises.
Here are the 10 things that you
should be sure of before you buy a term plan
1. Required cover..!
It is important you choose an
adequate cover amount & avoid being over or / under insured.
A life insurance policy is meant to provide for your dependents when you
are not around.
Ideally, this plan must take care of the basic expenditure that your
family will incur; major expenses like education/or marriage of children &
other liabilities like loans.
If you avail a life insurance plan with inadequate sum assured then the
entire purpose of securing your family is defeated.
2. The inflation factor..!
If you have bought a term plan of Rs. 50 Lakhs & think your family’s
future is well secured, think again.
In a matter of 10 years this amount will be as good as Rs. 20 odd lakhs
considering the rate at which inflation is increasing.
So, factor in inflation when you work out the sum assured you need.
3. Policy duration..!
Ideally, a term plan should cover you till you intend to work. Avoid
selecting a short tenure as it will end in a short period, may be the time when
life cover is required the most.
Also, availing a fresh cover at this time will be expensive & you
could get denied if you have a health condition. The best thing to do is to
choose a plan that offers you the flexibility of fixing the tenure.
4. Online / offline plan..!
Check your options for availing a
term plan, online or / offline. Now-a-days, most of the consumers are opting
for online term plan as they are comparatively economical to avail than the
offline policies.
Not only do they cost less but can be bought instantly at a click of a
button as well without any medical tests (for a certain age group and up to a
particular sum assured).
5. Features of the plan..!
Check the features of the plans you like to match your requirement.
The policy should be flexible enough to allow you to choose the tenure,
the sum assured and the means by which you want to pay the premium annually or
half yearly.
6. Additional benefits..
See if iNSURANCE FIRM can provide
any additional benefits related to death benefit in the policy.
7. Claim settlement ratio
The moment of truth for a consumer arrives when he/she claims his
insurance.
Here is when your family gets the benefit of the premiums you paid.
Hence check the claim settlement ratio & process along with the terms
and conditions for the same.
8. Compare plans..!
As there are many providers for
term insurance policy in the market, it is important you compare the plans that
appeal to you the most and decide which suits you the best.
Apart from comparing the price also look into the features, benefits of
the plan, and claim history.
9. Matching goals..!
The plan you choose should match
your financial goals. Some of them could be as follows – To financially secure
your loved ones by ensuring enough financial coverage to meet regular needs in
case of an eventuality
Cover the loans you may have taken so your family is in not in a
situation to struggle to repay them
Protect the future needs of your children such as their marriage and
education
10. Premium affordability..!
As term insurance is a long term product, you must be comfortable with
the premium amount charged.
So determine how much you can commit to the plan on an annual basis.
Do not make commitments that could be difficult to fulfill later on as
they will only prove to be a financial burden obstructing the many other
responsibilities you need to complete.
Disclaimer:
The article is meant to be general and informative in nature and should
not be construed as solicitation material. Please read the related product
brochures for exclusions, terms & conditions, warranties, etc carefully
before concluding a sale
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