how-to-choose-a-right-term-insurance-plan

How To Choose The Best Term Insurance Plan in India?

You cannot let your family suffer due to your wrong choices. No one can beat the misfortune of death but we surely can have a backup plan (best term insurance plan) to deal with all the problems associated with it so that we can take care of our beloved ones even if we are not with them.

Being the bread earner of your house you have a lot of responsibilities and what if a certain accident or mishappening takes it away from you. The relief of giving a happy life to your family even after death is somehow out of the world. Life insurance policies are the magical tools that can help you in providing a secure future to your family members even after your death. But you cannot trust any of the policy without getting into details. A lot of things like age, liabilities, income health, etc. are required while choosing the best term insurance plan. Worried? Don’t be because Investpolicy has some solutions for you. we are expert in term insurance plans. This article will explain to you how to choose an appropriate insurance plan for you and your family.

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What Are The Insurance Plans?

Insurance in layman language means full proof protection from any kind of financial loss. It is a type of risk management tool that does not protect you from the risk but can help you to overcome its effects. The entity that provides you an insurance plan is called the insurer e.g. Insurance Company and a person who takes the plan is called the policyholder or insured. An insurer files a contract with policyholder according to which he has to pay a premium to the insurer.

How Does The Best Term Insurance Plan work?

Term insurance plans act as a life cover plan that provides you coverage for a defined period and in case the Insured Dies within the period the family is benefited with a specific amount of premium coverage for the specific time duration.

How to Buy The Best Term Insurance Plan?

Don’t Make It Too Late

Don’t think about the maximum or minimum age buy it as soon as possible! Being late will harm you as the premium amount increases with the age of the person and in case you get any kind of diseases or illness with age, it will get tougher for you to get a better plan.

So, once you have decided to have a certain amount of life coverage go ahead without any second thought.

Time Consideration

You might be thinking till what age you should buy a term insurance plan? Should I buy it for 80 yrs or above? The answer to your question is no! It’s better to buy the best term insurance plan until your retirement age. It is because till your retirement not many of your family members would be financially dependent upon you. Financial responsibilities are more at a younger age and decrease with time because your children are old enough to fulfill their requirements.

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Don’t Get Mislead By Exclusive Offers

Various insurance companies advertise their plan by sharing it based on cost per day. For instance, “get a term plan of Rs 2 crore in Rs 50 per day”. Note that they never mention the age group and period of the policy. The policy may be for a 25 years old person for a period of 40 years. Apart from it, the insurance agent may mislead you by convincing to buy a single premium policy over the regular premium policy. Don’t let things mislead you, think wise and twice while buying a term insurance plan.

Select an Appropriate Insurance Rider

Insurance rider works as an icing on the cake. They are adding on to your insurance plan and you can choose them as per your requirement. For example, if you have to travel a lot for your business or any other purpose there are higher chances of dying in an accident. In that case, an accidental rider can be very beneficial for you. Similarly, if you want to cover the risk of some kind of critical illness and don’t want to spend money on buying an extra policy then you can take the benefits of critical illness cover by adding it in your term insurance plan. But don’t get over-excited about them and choose only if there’s a requirement.

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Don’t Hide Anything

The grave mistake most of the policy buyers do is by hiding critical health or smoking/drinking related information from the insurance companies. If you have any health issues or have gone through a major surgery/operation or are a chronic smoker/alcoholic, make it clear to your insurance company to avoid term insurance claim rejection.

An insurance policy is a legal contract and by hiding all these things you are breaching that contract. And due to this, the company is not responsible to give you any kind of claim.

Don’t Go For Small Insurance Covers

don’t invest in small insurance covers as they are of no use. Ask yourself would that amount be efficient to take care of your family.

With rising costs, the amount you have selected might not be enough for your family. Then you might be thinking, “How to select an appropriate insurance cover?” You can do it by adding up your liabilities, 200 times of your monthly budget and add on some more amounts that can help your family in fulfilling their future goals. And this is how you can choose an appropriate amount for your insurance cover.

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Go For a Strong and Good Brand

According to the latest survey, there are about 24 life insurance companies in India. Do you think you can trust any of them and are they equal in terms of claim settlement and dealing with their clients? I don’t think so! It’s better to analyze all of them and choose the one with a strong presence, good brand name, and better client history. You can check their reviews and data or can ask your near and dear ones regarding their experience with those companies.

So, this was all about the things you need to consider Investpolicy while purchasing the best term insurance plan. Feel free to ask us any questions regarding term insurance plans.

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2 thoughts on “How To Choose The Best Term Insurance Plan in India?

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