The unprecedented time of Covid – 19 came as one of the eye-openers for people to realise and understand the need for Term Insurance for loved ones and family members. With the passage of time, people are becoming more aware and educated in terms of securing one’s financial well-being. Amongst several options, Term Plan or Term Insurance is emerging as one of the preferred ones. It offers financial coverage to the insured’s loved ones and family members in case of the death of the insured person but for a specific period or ‘term’ only.
There are several companies that provide diversified term insurance policies. For example, Tata AIA Policy’s InstaProtect imparts a comprehensive solution for securing the financial well-being of loved ones. The policy covers accidental death, permanent disability, critical illness, total disability and hospitalisation expenses. Similarly, there are several other companies imparting the best term insurance plans.
Here, we have gathered the top factors one must consider while buying term insurance online purchase. Read the article further to have a better understanding of each factor.
Top Points to Consider While Buying Term Insurance
Here are the points that you must consider while buying a term plan:
- Understand your needs
Many say, “this is the best term insurance in India; go for it!” Don’t ever choose a particular term plan on someone’s suggestion. You need to understand your and your family’s needs. Make the correct financial needs estimate and choose the term insurance policy accordingly. Then, you can choose the best term insurance plan as per your need. This will differ from person to person.
- Analyse different term insurance plans
The market is flooded with innumerable term insurance plans. Therefore, it is important to introspect whether you are willing to go for a single policy or multiple term insurance policies. If you opt for multiple term insurance policies, then it is essential to study them in detail.
The terms and conditions should be thoroughly read. One should also calculate the number of premiums, amount of premium, duration of payment, etc., before taking it. The usage of a Term insurance calculator can also simplify the task of finalising the term insurance policy.
- Look for the policy period you want
The next critical decision is the policy period. Term plans are intended to provide coverage for the term period according to the preferences of the insured person. When purchasing insurance at a young age, selecting the longest available policy period is best. If the term period is comparatively long, the premium charged will be lower.
- Decide the coverage you require
Everybody’s needs differ from each other, and so do the family’s needs. You must consider the factors like inflation, loan repayment (if there are any), or any other considerable expense which can occur further in the future. Consider the family needs, for instance, if there are young children, their education fees, etc.
This is how you can make the correct estimate of the insurance coverage you need. Further, buy the term insurance accordingly. You can also opt for multiple-term insurance policies for better and more secure coverage.
- Age while buying the term insurance
It does not need to get an insurance policy for a term that extends beyond the person’s retirement age because most dependents will have been financially independent by then. Insurance purchased at a younger age has a cheaper premium than one purchased later in life.
- Check additional riders available
You must look for the riders like accidental death coverage, accidental disability coverage, illness coverage, and much more available with the term insurance policy. If the riders you want are there with the short-listed term insurance plan, then choose it otherwise, and look for another term plan.
Term insurance is required to keep the future of the family members and loved ones secure after you. Hence, it is essential to make the right choice in this matter. Buying right-term insurance depends on the coverage you need, age, premium, riders available, and last but not least, family needs. Based on these factors, you could make the right choice easily.