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Shaheen Shaikh
by on October 19, 2020
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Through term life insurance policy, a lump sum amount is paid to your nominee in case of your untimely death. There are plans by which you can choose to receive the benefits in the form of monthly payments or regular earning along with the lump sum. Also, you can combine riders to your base plan for giving benefits in the case of disability, critical illness or accidental death. 

Do's and Don'ts You Should Know For Buying Term Life Insurance

Do's

Understand Your Requirements

Firstly, you must think and be sure about what are your major needs, why you were getting the term life insurance policy and what are your basic expectations from the term life insurance policy. 

Research and Get Proper Advice

You should seek advice about term life insurance mindfully. Also, you must research all the term life insurance policy options properly. Moreover, you need to be extremely cautious and open-minded while you are finding information about the term life insurance policies such as - what are the premium payment options, which riders are available, etc. 

Future Reference

You should make sure that you keep a copy of the signed form and any other documents/declarations that you have attached with the proposal form. This is for your personal records and can be valuable for future references.

Collect important information

Also, another essential thing to do while buying term life insurance is that if you are buying a ULIP (Unit Linked Insurance Plan), then you should have information about the below pointers:

Options for funds

Funds Switching

Charges levied

Extra benefits that can be received such as Surrender benefit, discontinuity of the plan, and partial withdrawal of the funds, free look period, etc.

The reputation of The Insurer

You should always consider the image and reputation of the insurer whose term life insurance plan you are planning to buy. You should avoid buying term life insurance policy of those insurance companies who have low claim settlement ratio or are linked with too many disputes. 

Don'ts

Avoid Wrong Information

You should not misstate any personal or financial information while filling the form for term life insurance policy. Any misleading information can lead to rejection of your claim at the time of urgency. Also, your paid premiums will not be refunded, and you will be in great distress. 

Do Not Sign Any Blank Application

You should never sign any blank application forms as they can create problems in the future. 

Don't Leave Forms Incomplete

You should complete your proposal form for a term insurance plan and also avoid leaving any field blank in the proposal form. 

Avoid Delays in Premium Payments

You should never delay premium payments for your term insurance policy because this can lead to you being charged for late premium fees by the insurer. 

In these ups and downs life, there is always a risk or concern which gives rise to the thought 'What if'. A term insurance policy is created to give solutions for this 'What if' situations of life. With its affordable life coverage and added riders, term insurance cover is one of the best answers to all the risks of life. Nevertheless, it is crucial to choose your term life insurance policy carefully according to your needs and only after doing a thorough analysis.

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