Term insurance is a way to secure the financial future of your family at a low cost. Term insurance provides protection to your family in your absence. It protects your dependents from the financial crisis and provides them with financial help. Come, through this article, we are going to tell you about some important things about the term insurance scheme, which you always want to know –
How much does it cost to buy term life insurance?
Term insurance is the cheapest type of life insurance plan. The term insurance scheme has been designed in such a way that it can come in everyone’s budget and can meet different types of coverage needs. The death benefit given in the plan is much higher than the total premium amount and the policyholder gets many times more than the invested amount. In the basic plan of term insurance, you can take advantage of riders, who provide additional benefits and coverage. The premium amount is decided on the basis of insurance amount, riders benefits, policy term, pre-existing diseases etc. in the plan. Along with this, you can avail online term insurance plan at a lower price than offline, because you do not have to pay agents for margin and other things when you take an online plan. The cost of term insurance varies for both smokers and non-smokers. Many insurance companies offer better plans at a lower cost to smokers and women.
When is life insurance the best option for you?
A life insurance policy is the best option for you in the following situations –
- When you want to leave some money as a legacy for your family.
- You want to save the family from trouble if you are not there. Want to protect them.
- If you are a single-family earner and want to live a comfortable life even after retirement.
Why medical examination is necessary before taking term life insurance?
Before taking a term insurance plan, you and the insurance companies get correct and complete information about your health by conducting a medical examination. This allows you to decide the duration of the policy, coverage amount and other benefits. Insurance companies determine the premium amount only on the basis of medical examination. The medical examination is necessary because insurance companies charge a higher premium than individuals with pre-existing illness, drinkers and smokers. The medical examination is mainly done when the policy taker has passed a certain age. During a medical examination, your height, weight, blood and urine tests, HIV tests and pre-existing diseases are tested. It is confirmed on the basis of investigation whether you smoke or not, you do not have some internal disease etc. By conducting a medical examination, you can decide the coverage amount based on your health status and it also makes it easier to settle the claim, so keeping these reasons in mind, we should opt for a medical examination. The cost of the medical examination is borne by the insurance company.
How much coverage amount will you need?
Before buying term insurance, you should determine the coverage requirements keeping in mind your current salary, the lifestyle of your family, debts and liabilities and rising inflation. The sum assured in a term insurance plan is to make your family’s financial need and life easier. Your family may face a financial crisis due to insufficient coverage. You should keep in mind the following while deciding the coverage amount –
- Your monthly salary, which can be replaced by the coverage amount.
- Education of children, health status and needs of parents and other expenses.
- Long term loan, mortgage etc.
You should choose the coverage amount and riders keeping in mind your basic insurance requirements and your family’s lifestyle.
Term insurance riders
Term insurance schemes offer some additional benefits, known as riders. Riders allow people to make changes to basic plans and increase coverage to suit their needs. For example, a person, in whose family someone has a serious illness, can choose critical illness riders. Apart from this, you can also choose many types of riders. Some of the riders offered in term insurance schemes are –
- Accidental Death Benefit Rider
- Income replacement rider
- Premium Rebate Rider
- Critical illness rider
- Disability rider
- Quick death benefit rider etc.
Before selecting term insurance plans you should compare various plans online on the premium amount, coverage amount, riders, claim settlement ratio, additional benefits and other basis and choose the best plan keeping in mind your needs.
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