A term insurance plan, as the name suggests, offers an individual life cover for a predetermined period of time. One of the popular options among masses these days, there are several benefits that only a term plan will give you.
A term plan will conveniently offer financial security to you and your family. There are certain important points to understand well before you can plan your insurance.
- Your needs: What are your needs? How much is your family financially dependent on you? What are your plans for the immediate future? All these and other personal goals should help you calculate a rough idea of how much cover you may need.
- Term plans are extremely affordable as compared to other insurance types. The premiums are affordable while ensuring quality life cover.
- Death benefit: Death benefit is another component that makes a term plan so popular. In the case where the insured dies, the nominees avail death plan as agreed upon while creating the term plan.
- Custom plans: There are several insurance companies in the market. Your needs are unique. A single plan as built by the company may go waste if they do not help meet your goals. What you need to look out for is the company that offers great options when it comes to personalizing your term plan. The premiums charged and the sum assured may vary across companies and the term you apply for.
- Term plans are renewable – another attractive feature. They can also be conveniently converted into whole life insurance or endowment insurance.
- Does your insurance provide you additional protection options? Your term plan should cover aspects like accidental disabilities, major illnesses, events like marriage, children’s education among others.
- Does your policy offer benefits to your spouse? There are companies that offer great coverage options for your spouse under the same insurance policy.
- The terms and conditions also vary across companies. Know them well before you make your final decision. Every term and condition involved shapes your term plan.
- Convenience is another factor. Most of the information you require is easily available on the internet. Insurance companies are more than happy to offer their assistance and address your concerns. A lot of companies offer completion of procedures over internet. This saves you money and the need to run from pillar to post for the smallest of matters. Term plans are on the rise thanks to these hassle-proof features.
- There are many websites that lets you review insurances offered by different companies. You can compare between aspects like the tenure range companies offer, claim settlement ratio, eligibility criteria, waiver of premium, and more.
These are some basic factors that should help you make an informed decision when it comes to buying suitable term insurance plans.
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