Things to Consider Before Buying Term Insurance

If you want to avail life insurance at a minimal cost and yet wish to seek the benefits of availing the lump sum amount by your beneficiary in case of your death, term insurance is a good option! Yes, if a policyholder dies during the policy tenor of term insurance, his/her nominee is entitled to receive the selected assured sum. If a policyholder is alive by the end of the policy duration, he/she is not eligible to receive any maturity amount. It is one of the reasons that term insurance cost little and yet cover a large amount of your risk of life. Since its pure life insurance, one can buy the best term insurance plan in India. Coming to a term insurance scheme these days, there are various types available such as premium return, term insurance up to 100 years, many add-ons and riders and even claim payable option. You should buy term insurance as per your needs and not by what the market offers. Online term insurance benefits at a glance! An online term insurance plan is easy to buy online and offers many advantages such as: 1. You can buy it with the click of a button 2. With no middlemen involved, you will be able to enjoy affordable term insurance plans online 3. You can file the proposal form online on your own, and hence, there is a lesser margin of an error 4. No influence by agents to buy a plan suggested by them or pay them any commission 5. Online insurance companies can also offer you around 5-10% discount if you pay your first-year insurance premium online. This is being done to promote cashless transactions in India, especially after demonetization. Consider ‘these’ things before buying term insurances By considering the following aspects, you can easily manage your term insurance such as: Don’t rely on claim settlement ratio Be informed to know that a claim settlement ratio is always a raw data, and you should not truly rely on it while deciding to buy a term insurance plan! Life cover quantum The basic and important calculation of a life cover quantum is that it needs to be at least 15-20 times than your current yearly income. Check for such a scheme complementing your needs and then only apply. Don’t let someone else take over your decision Never go back on a decision that you think is against your wish and as per your needs. If you are confident that a policy will surely cover your needs, go ahead and buy it. Policy term The term of your policy should ideally be your retirement age. It is because one retires when one is financially free, and hence, it is not required when you hang your boots. Keep off from riders It would be good to select a pure financial product to address your needs exclusively. Never club life insurance with general insurance to get better features that you are seeking. Be careful with premium payment For availing term insurance, you need to be prudent while paying the premium. Opting for yearly premium payment would be good. If you could make the payment automatic via the ECS, it will be better. The Bottom Line Now that you are aware of the vital aspects that you should consider while buying a best term insurance plan in India, you can go ahead and buy it online. Good luck! Also Read:- All You Want to Know About Term Insurance Plans and Policy