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Term plan is for those who need Risk protection at lower Premium rates. It is rare that one can go wrong while purchasing a Term plan as long as you bear some key aspects in mind:
Adequate Term Insurance cover is important to cover the financial goals of your family, which usually include expenses involved in the upbringing of children and their marriage, liabilities like loans, and so on.
Tenure of insurance is crucial, as an insurance cover has to be in place when you need it the most. For example, you may want to opt for a duration that will end when you are 65 years and not when you are 50, as health risk and financial insecurity is more at 60 years as compared to 50. If you want to buy a Policy when you are 50 years, it will either cost you a lot or it may even be denied on health grounds.
Choose an insurance company which has been long standing. The company needs to be reliable, as buying an insurance policy is a long term contract. You can get information about the company’s performance and credibility by browsing the internet.
Rate of Inflation is another important factor that many people overlook when purchasing a term plan. Money gets devalued with time. Therefore the amount of insurance cover must not be too less to meet long term financial demands. Providing for an insurance cover that will sufficiently take care of future needs ensures risk protection.
Online term plans are cheaper and easier to purchase without the intervention of an agent or insurance broker. Some term insurance products are available exclusively online to attract more customers to buy online. When purchasing online it is necessary to compare all the products that suit your needs before choosing one. It is equally important to find out details like tax benefits and other fringe benefits before buying a plan.
Minimal investment and maximum cover is what you need to seek in a good term plan, since it is for a fixed tenure. There is no point spending large amounts for paying the premium and not getting an insurance cover of sufficient amounts when needed.
Riders like accidental benefit, premium Waiver or Critical Illness benefit may not be available as a bundle when purchasing some term plans online. So, it is important to look out for these details. Sometimes, it may also be necessary to opt for offline insurance through an agent, in case you need an insurance cover that is customized to your specific needs. Of course, you would have to factor in additional costs if you were to do so.
Attention to detail, matching needs with financial goals, and a reliable company are significant aspects that help you to decide on buying a good term insurance plan.