Life is very uncertain and you never know what tomorrow brings. If you are the breadwinner of the family, have you ever thought, who will take care of loved ones in your absence? Do you want your family to depend on someone else for daily needs? Nobody wants their loved ones to suffer in their absence. This is when term life insurance comes handy. Term life insurance makes sure your loved ones are financially stable when you are not around.
Term Life Insurance is a type of Life Insurance, that offers cover/protection for a fixed period of time called tenure of the plan, on payment of a premium. If the policyholder dies within the policy term, family members will be paid the sum assured called the death benefit.
Term insurance provides financial protection to your family, in case of a sudden demise. It is very important to avail a term life insurance plan, if you have availed a home loan. With the sum assured, your family can pay off the loan and children can continue their studies. It is must to protect your family with a term insurance plan, if you are the breadwinner of the family.
It is advisable to avail term life insurance, if you travel frequently on job.
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Many people think they are young and don’t need term life insurance. But, the fact is, term life insurance must be availed at a young age. You might find it difficult to avail term life insurance, when you are older. As you grow old, premiums paid on term life insurance plans increase and coverage reduces.
As many people come forward to avail insurance policies to protect loved ones, many insurers are offering different types of insurance policies. So, it very important to select the right insurance plan. You must do proper research on the insurer, before selecting the policy. Make sure the insurer has a high claim settlement ratio. The claim settlement ratio must be over 90.
Don’t always look at the premiums while availing term insurance. Some term life insurance plans are cheap as they offer cover for a short tenure. If the term life insurance plan expires when you are in the 50’s, availing a new plan at this age, can be a nightmare.
You must consider the cover you require also called sum assured, while availing a term life insurance plan. The sum assured must be at least 15-20 times annual income. The following points must be noted, while deciding the cover.
As term life insurance is availed to financially protect loved ones when you are not around, you must select the right tenure of the plan. So, make sure your policy provides cover across working life. If the coverage ends when you are 50 years old, it will be difficult to avail a new policy at that age. It is advisable to select tenure across working life.
Never hide important details from your insurer while availing term insurance. In case you provide wrong information or hide some vital facts, the claim made by your nominee would be rejected. So, if you are in the habit of drinking or smoking, mention this in the proposal form.
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Don't let your insurance agent fill the proposal form on your behalf. Instead, fill it up yourself. You must read all the terms and conditions carefully before signing on the dotted line.
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