Categorized | Term Insurance

what you need to do to ensure a smooth buying process of term plans

A Term plan assures financial security for your family in the event of your unfortunate demise. On the face of it, buying a term insurance seems to be very easy and straightforward, but you have to be mindful about certain aspects so that things don’t get complicated for you.

To ensure that the buying process goes smoothly just ensure the following

1) Be Prepared for a Medical Test

Most insurance companies require you to undergo a medical test before they issue you the policy. The Premium that most insurance agents would quote is the minimum amount and the premium value can increase if there are some abnormalities in the medical test. If you are aware about any medical condition that you may be suffering from, it is better to disclose upfront. The insurance company has the right to reject a Claim if it discovers that certain key facts were deliberately hidden by the policyholder. If you are a heavy smoker, it is better to disclose the same, rather than categorizing yourself as a non-smoker. Beware that a medical test can easily detect the nicotine levels in your blood and hence hiding things is not advisable. Gather relevant details regarding the medical history of your family before filling up the form. Also, it is important to reveal information about your lifestyle and social habits.

2) Be Aware of the Various Riders and Variations in a Term Plan

It is common to find people realizing later that the term life insurance they have chosen for themselves is not the right one. Here a few things that you need to be prepared with upfront before buying a term plan to avoid repenting later.

1) What is the value of cover I need?

1) What is the duration of insurance cover do I need? - Not all term plans would have the same duration of coverage

2) Apart from a life cover, do I need additional protection for my family to be included in the term plan? The important riders that you may choose to be included in a term plan include disability cover, Critical Illness cover and accidental Death Benefit cover.

3) Compare Term Plans to Buy the Best One

It is best to buy term plan online as doing so allows you to take a very informed decision and the probability that you would regret it later is unlikely. You can compare among term plans and select the one that offers you all the benefits you are looking for at the lowest premium cost. Before you fill up the form, be prepared with all the information on your family’s medical history, so that you are able to fill all the information correctly.