Financial advisors worldwide suggest that if you are an earning individual and have dependent family members, you must have an insurance policy to compensate for their financial loss due to your sudden demise. Among a wide array of life insurance policies available in the market, term insurance is immensely popular.
A term insurance plan provides insurance cover for a specific period, as mentioned in the policy documents. The period can range from 10 to 30 years or more; and you can choose policy duration based on your specific insurance needs. One of the most significant reasons many life insurance buyers prefer buying a term plan is that it has the most affordable premium. Additionally, it is the most uncomplicated life insurance with easy-to-understand terms.
If you are buying a term plan for the first time, here are a few crucial factors that you must consider.
Deciding on the coverage amount for term insurance can be challenging. You can use the various online tools and calculators, but you must remember that the amount should be sufficient for your family to take care of their everyday needs for a few years after you are gone.
Some of the critical factors you must consider while arriving at the specific figure is your family’s lifestyle, average monthly expenses, debts, inflation, number of dependents, etc.
Just as it is important to choose the right coverage amount, it is critical to select the right policy term. Term plans are generally long-term plans. When you buy a policy at an early age, choosing the maximum period available is better so that your family gets protection for the longest period. Also, when you buy a long-term policy at a young age, you can be assured that you pay a lower premium for the entire policy duration.
You can buy a term insurance policy either online or offline. But it is better to buy online as you need not have to bear additional expenses like insurance agent fees. Also, when you buy online, you can compare the different plans from different insurance and make a more informed decision. There is no risk of the insurance agents trying to sell a policy that would earn them maximum profits.
You can see the policy benefits, features, read the terms and conditions and choose the right policy to suit your needs. Moreover, the online buying process is simple. You can purchase the policy of your choice with just a click of a few buttons.
Choose the right insurer
Whether you buy term insurance or any other life insurance policy, make sure you choose the right insurer; it is better to purchase a policy from a reputed insurance company, like Kotak Life Insurance. Do your research well on the insurance company’s claim settlement ratio, the quality of services provided, and choose the right insurer accordingly.
You can refer to the insurer’s website for testimonial and customer reviews to get a fair idea of the company’s services.