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Things To Keep In Mind While Availing Term Insurance Plan

IamCheated.com Research Team | December 28, 2018  12:54:pm

It is very important to avail a term life insurance plan, if family members are dependent on your income. Term insurance ensures that your family members are not financially dependent on relatives in case of an untimely demise. As term life insurance is availed to protect your family, you must be very careful while availing it. A single mistake can cause problems to your loved ones at claim settlement. Hence, it is very important for you to keep certain things in mind while availing a term life insurance plan.

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Things To Keep In Mind While Availing Term Insurance Plan:

1. Avail term insurance at the right age

Many people believe you don't need term insurance when you are young. This is not true. One must always avail a term insurance plan at a young age. As you grow old, the premium you must pay increases. If you fall prey to any disease, it will be difficult for you to get a term insurance policy. So, it is advisable to avail term insurance as early as possible, if you have dependents.

2. Avail term insurance across your working life

Why do you require term life insurance? It’s to financially protect your loved ones when you are not around. So, you must avail term life insurance across your working years. Your family members may be dependent on your income till your retire. So, while availing term life insurance, make sure to choose a tenure which covers working years. It will be quite costly to avail a new term life insurance plan when you are older.

See Also: How to choose the best Term Insurance Plan?

3. Tell your insurer about your smoking and drinking habit

The biggest mistake committed by many people while availing term life insurance is hiding the smoking and drinking habit to save on premiums. The fact is you must never hide anything from your insurer. This is because claims made by your nominee would be rejected by the insurer if they get to know that you have not disclosed relevant facts. So, make sure never to hide anything from your insurer while availing a term life insurance plan.

4. Never hide your health condition

Never commit the mistake of hiding your health condition while availing a term life insurance plan. If you have any health issues or if you have undergone any major surgeries, inform the insurer while availing the term life insurance plan. If you hide health issues, there are high chances of your insurance claim getting rejected.

5. Opt for regular premium plans

While availing a term life insurance plan, you will be asked to choose between a single premium vs regular premium. Many people opt for the single premium, believing they can pay the premium at one shot. But, it is advisable to opt for a regular premium plan while availing term life insurance. If your insurance agent forces you to opt for a single premium plan, do not agree to it.

6. Mention your nominee's name

Do not forget to add the nominee's name while filling the insurance proposal form. Your nominee could be your wife, children or anyone you wish. Try to avoid adding old people as the nominee’s to the plan.

7. Choose a reputable insurer

There are many insurers in India which offer term insurance plans. So, you must do proper research and opt for the best insurer while availing a term life insurance plan. You must look at the claim settlement ratio of the insurer. The claim settlement ratio must be at least 90.

8. Check the policy paper as soon as you receive it

The first thing to do as soon as you receive your policy documents are, thoroughly go through them. You must check all the fine points and terms and conditions. In case anything is wrong, contact your insurer and get it rectified immediately.

See Also: How to File a Consumer Complaint Online?

9. Inform your family on the insurance

If you have bought an insurance policy to protect your loved ones, inform them on this. Tell them about the claim settlement process.

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