Know About Best Term Insurance Plans in India

7 things to buy before best term life insurance plans in India

7 things to buy before best term life insurance plans in India

If you want to get term insurance, it is important to know some things before buying. Like how much to cover, from which company to take the policy, for how long to cover, etc.

If you make insurance and something untoward happens to you, then the financial item given to your family in your absence is called term insurance.

Know About Best Term Insurance Plans in India

You understand the difference between investment and insurance, you invest for financial gain, whereas insurance is done to compensate for financial loss due to an emergency accident. That’s why you should not consider insurance as an investment.

Before taking term insurance, it is required to know some things really need in insurance.

1. Decide your cover in term insurance

Financial advisors say that you should take a cover of 10 to 12 percent of your annual income. But you can take cover as per your requirement.

  • If something untoward happens to you, then in the coming time how much money is needed to survive,
  • In your absence, how much money is needed for your life partner and family, children’s education, children’s marriage, parents’ treatment, and your children are not able to earn, then household expenses, etc?
  • You can calculate your cover and decide your cover. You can take the help of an online calculator to get cover of term insurance.

Calculate cover

2. Timing of Insurance Cover

You take a term insurance plan at a young age and continue the policy for a long time. Then your insurance premium goes down. That’s why it is advisable to start term insurance at an early age and take a policy for the long term 65 or 70 years old.

  • You have paid premiums for a few years, and then over time, the financial requirement has increased or decreased after you are no more. Then you can increase or decrease insurance cover by increasing or increasing your premium.
  • When you were 30 years old, and have two kids, you took an insurance cover of 1 crore keeping in mind your family, school, college education, marriage, etc.
  • Today you are 50 years old, your children have finished their studies, they got married and started earning. 
  • Now do need a lot of financial help to take care of your family when you are not there. In such a situation, if you are getting a high insurance premium, then you can reduce your premium by reducing your insurance cover.

3. Choose the right nomination

You have got insurance and while filling out the form, you should fill in the information of your nominee (in case of your absence, to whom the insurance money is given) carefully.
Carefully submit the Aadhar card of the nominee and other necessary documents to the company.

It should also be noted that there should not be any manipulation in any letter of the name in any document of the nominee then get the documents corrected and submitted.

4. Choose the Right Company

You must choose the right company while taking an insurance policy. You should see the claim settlement ratio of the company choosing the company and the service, and also must know the financial condition.

It means to say that you buy the policy from that company only after thoroughly researching the company.

5. Method to pay claim money

It is needed to know how the company pays the claim money.

Many companies pay the insurance money according to the needs of the family.
Some of the claim money is given together, and the rest is paid in monthly installments according to the needs.
Paying a large amount of claim in two to four installments as per the needs and paying the rest as monthly installment is the best solution,

6. choose the option of raider

If you become disabled in an accident and are not able to work. Even in this situation, what percentage of the claim money is given by the company.

7. Buying a term insurance policy online

If you buy an insurance policy through an insurance agent or agency, then the company has to pay commission money, due to which the value of your insurance premium increases.
Because the commission of the agent is higher when buying higher insurance cover.

Therefore, to increase their commission, the insurance agent tries to sell you a policy of higher premium as their commission directly depends on the insurance premium.
So Try to buy term insurance cover online.

Keeping these things in mind, buying insurance online is cheaper than offline. You can also take advantage of discounts and other cashback online.
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