5 Things to Know Before Buying Term Life Insurance Plan

How term life insurance can Help your family during this Pandemic?

Everyone knows that securing your future is very simple if invested in the right insurance plan. However, if you find yourself consistently overwhelmed by all the options available in the market, investing in a term life insurance plan is your best bet.

Term life insurance is the simplest and purest form of life insurance that provides comprehensive financial protection to you and your family against uncertainties in life for a set period of time. Here are a few things you need to know before you invest in a term life insurance plan

Establish the coverage you need

Your term life insurance plan should be able to provide financial aid that your family can use in case of your untimely death. This in turn means that you need to keep in mind several things before you invest. Here is what you need to assess:

  1. Your age
  2. Your financial responsibilities
  3. Your family’s future financial requirements
  4. Your liabilities on account of home loan, personal loan, credit card bill, etc.
  5. Whether you are accounting for inflation and rising costs or not

Determine the tenure of your policy

Once you determine the coverage you need, you need to establish how long you need it for. The tenure should not be too little as the policy might lapse before your financial obligations are completed. However, the tenure should not be too long as the premium charged would be too high on the account of the higher tenure. You need to determine your tenure based on:

  1. Your age
  2. When you plan to retire
  3. Your financial responsibilities

Find suitable premium payment options

The premium amount of your policy will depend on your chosen payment option. You can opt for a lumpsum payment or a regular monthly payment. You should choose the payout option as per your requirement and feasibility as the premium also varies depending upon the payment option you choose. Talk to your insurance broker for more information.

Research before you choose your add-ons

Term life insurance plans offer additional benefits at reasonable costs. You need to consider each carefully and find which ones fit your requirements. It is recommended that you speak to an insurance broker. They will help you choose the plan most suitable for you.

Find the right insurer

With many insurance companies offering different types of plans in the market, it is very important to choose the insurance partner that best suits your needs. Some of the checks you will need to make during your research is for:

  1. Claim settlement ratio
  2. Solvency ratio
  3. Financial background
  4. Market reputation

Understanding the key aspects of a term life insurance plan can help you make an informed decision. Contact Harpreet Puri for expert guidance on securing your family’s future.