Having a term insurance plan to protect your income and family both at the same time has some sense when we think about security and safety. The well-earned peace of mind is priceless and you can get the same kind of peace of mind when you have a term insurance. People often have second thoughts about whether to have a term insurance plan or not. Middle-aged moms and Retirees think seriously about the costs vs the benefits of these plans.
More importantly, it is backed up by the simple question, 'Would my untimely passing may lead to a financial tension with any of my loved ones?'. If you have the same question, this is the right time to think about getting a term insurance policy. Whether it could be Health Insurance or Term insurance, all these things bring us serenity. These things would definitely help us live longer without any stress.
There are varied advantages of term insurance. A number of them are as follows:
- Financial security
- One’s family is freed from the burden of outstanding loans
- Large coverage for a low premium
- Peace of mind
If you're about to buy a term insurance plan in upcoming weeks, then you are at the correct place, because nowadays we can share dozens of points that any term plan buyer should understand before they purchase the cover. Most of the buyers who are new to term insurance plan don't understand numerous essential facts and points that they should consider while they are buying the policy and because of that, we have come up with this listing which will help you.
1. Understand your goals and needs:
You need to understand that insurance plans provide the policyholder a wider protection. You should, therefore, analyze your needs & goals and then invest in the insurance plan consequently. At every stage of your age, you might have different need, just for an instance, when you will be married at the age of 30, your needs would be having a security for family and your loved ones just like having coverage on your liabilities such as home loans, or after you have a kid or two, your needs would be different like securing your child’s future etc.
2. What coverage best suits your Life stage:
According to an industry expert or thumb rule, it's always better to take a term cover that is at least twenty times of your annual income. You must analyze your current and future liabilities and debts like child’s education, wedding etc. and accordingly decide the cover range.
3. Do your own research:
Get the best term insurance, plans, and quotes online. Buying online will be a quick and hassle-free way to get insurance.
4. Understand what your plan:
We always think twice or more before buying anything such as, if you have decided to buy a Smartphone, you might drive a thorough research on various brands’ phones with varied specification and end up with the one that fits your expectations and goes with your budget. The same goes for Term Insurance. But remember, term insurance will not be your liability, it will add a protective cover to you. You must opt for term insurance plan after thorough research, having the best benefits and ensuring features are paid according to the specific need of you and your family.
You should also decide whether you want your family to receive a lump-sum or staggered benefits, in case of an unfortunate event. We also suggest you keep in mind that cheap isn't always the best. You must take the claim settlement ratio of the policy you are planning to buy into account.
5. Timely Review the coverage:
Along with future investments in assets and liabilities, each individual has totally different financial objectives for the long run. These events can improve or change your lifestyle in a positive manner but expenses throughout the years are guaranteed to vary because, at every stage of your life, there will be increased responsibility and to overcome the increased burden, it’s always suggested to review and assure peace of mind by having a term insurance. Therefore, you also need to review your sum assured and premium payable often and alter them according to your goals and convenience.
In conclusion, giving stress in the early period is always better. If you settle on buying a term insurance at the 30s, the premium will be locked throughout the term. Over the period, we have observed that people don’t even think about the Term Insurance plans at their younger age and hence at the 50s or 60s they find them costly and there is a possibility of adverse health conditions which might lead to the limitations of the coverage.
So, think now. Happy Buying.
In case you have any specific queries about purchasing a term insurance or need help in choosing the best plan for you, get in touch with Team 5nance for free advisory.