It is said that safety is the cheapest and the most convenient form of an insurance policy. But the time is cruel, and you may not get enough to accrue the corpus in order to safeguard your loved ones. This is where the experts suggest getting a life insurance policy that plays a vital role in your beloved family’s well-being. Isn’t it always good to secure the future today?
But again, what is life insurance? The question still goes on. When you surf on the net and try to excavate some information about which plan to buy, you get a million links that lead to more confusion. These different types of plans emphasise more on accruing a considerable amount. However, to leave all this chaos aside and to get pure life insurance, you have a suitable option of getting a term plan.
A term insurance policy doesn’t offer you any cash-value benefit, but what it provides is incredible. In case of any unfortunate event of death, the term policy offers the full sum assured to the beneficiaries, which is considerably high as compared to other life insurance plans. This not only helps in sustaining your loved ones’ lifestyle but also helps to secure their future financially. The amount is sizeable enough to cover
Here are some facts that everyone needs to consider before opting for a life insurance policy:
Right Time to Buy Term Insurance
You might think of purchasing a term policy after a few years as some money could be accrued during the period. However, the fact is, as the age increases, the premium amount of the term insurance also increases. Furthermore, you are more exposed to illnesses with the increasing age. This is why earlier the purchase happens, better the premium amount is.
Use the Term Premium Calculator
While finalising the plan, using the term insurance calculator is always beneficial in order to determine the right quote. The insurance companies and aggregators offer term insurance calculators on their sites that help in analysing which plan suits you better.
Don’t Judge the Plan by Price
If you get too see a plan worth Rs.20 per day, and another one at Rs.6500 per annum, ultimately, the less price gets the attraction. Going for the first one could cost more than the per annum plan. It is the marketing tact which leads to more confusion and results in the unnecessary spends.
Don’t Panic If the Premium Increases After Medical Test
Many times, the amount shown while getting quotes gets increased after medical tests. Don’t step back in such situations. The company always checks all the facts and determines the premium. This certainly reduces the chances of last moment claim rejection.
Choose A Rider If You Need It
Riders are available to provide additional protection to the term insurance policy. One can choose a suitable rider by analysing needs. If you are a frequent traveller, it is better to go with the accidental death benefit rider. However, understand that buying riders casually may increase the premium unnecessarily, so choose them wisely.
Disclose All the Information Wherever Needed
Always disclose the information about any unhealthy habits to the insurance company. Many people try to hide smoking/drinking habits in order to lower down premiums. The premium calculation is entirely based on the critical information you provide. Hiding facts is nothing but breaching the contract, which may lead to claim rejection. Usually, the claim rejection ratio in the case of term insurance is very low. Due to IRDAI, it is mandatory to settle the claims timely, and the ratio is noticed more than 90% in most of the cases. But the data also reflects an increase in the claim rejection due to non-disclosure of the information.
Family History Is Also Important
In relation to the previous point, disclosing family health history is also essential. Many diseases are hereditary, where you are also likely to adopt the same. The company considers probabilities and determines the premium amount.
Get Adequate Life Coverage
Usually, term insurance offers the cover of Rs.1 crore, which seems to be a considerable amount. But bearing in mind the inflation and other aspects, choose the minimum cover of around Rs. 1.5 crores and so on. The simple calculation is that the cover should be equal to 250 times the annual expenses if the tenure is 25 years.
Fill the Application Form Carefully
Complete all the essentials while submitting insurance application and filling out the form. Putting nominee name carefully is the most important. Making any mistake in the entire process may lead to claim rejection due to false information.
Buying Term Insurance Online is Safe
Many of us are not comfortable to purchase term life insurance online. They think that buying regular stuff through ecommerce is different and purchasing term insurance is different. However, online plans have lesser premiums than that of traditional ways, as several costs are minimised, and paying premiums online is absolutely secure.
Considering all the facts enlisted above, buying term insurance online is always beneficial in all the aspects. If you haven’t purchased any, make a wise decision by getting it, today!
