Term Insurance plans are best idea to fulfill all the needs of family through the sum assured but there are some points to keep in mind before buying.
About Term Insurance Plan: Term Insurance is basically a life insurance product which is offered by an insurance company to provide financial coverage to the policy holder for a specific time period. If the insure person dies during the policy term, and then the death benefit will be paid by the company to the recipient.
Term insurance plans are very much desired in the life insurance market and the great benefit is that these plans offer higher sum assured amounts at a very low premium rates. A sum money or death benefit is paid to the heir or nominee in case the policyholder dies during the period for which the policyholder is insured.
The policyholder can also get various options to get improved protection; there are some term plans available in the market those give protection to the policyholder as cash payouts on diagnosis of critical illness.
Key points to remember before choosing a Term Insurance Plan: There are some easy guidelines which will help people to choose a right term insurance plan to fulfill the financial needs:
Invest early: The cost of term insurance policy generally grows with the age so buying policy in an early age helps people to save a good amount on the premium amount through the total policy term that make the term insurance affordable to buy.
Also choose life cover: While buying a term life insurance plan, make sure that it fulfills the family’s financial needs also such as children’s education, marriage, making house or repaying debt etc.
Choose riders: Every rider adds coverage under the policy, just the insured needs to pay an extra premium to extend coverage.
Evaluates inflation factor: It is better to check the inflation rate as it may affect the financial needs of the family if it is not evaluated before choosing a sum insured.
Comparing plans online: In today’s time, it is better to compare plans online as it is an easy way to know better deals.
Reading policy terms: There are some terms and conditions written under the policy documents which need to be read as it will tell about the plan benefits, add-on-covers and many more.