What to Know Before Choosing The Right Term Insurance Plan
We always pray for the well- being of the family and would try our best to protect them from any uncertainties. But only praying would not work if you are the breadwinner of the family as the onus of giving them financial protection lies upon you even after your death. So, securing the family financially in case of an unavoidable circumstances like death of the bread earner is the primary concern.
As we can never anticipate death, it is crucial that we always have a backup plan when an unexpected situation crop up. A term plan in one such backup insurance plan which is inexpensive, beneficial and also widely available. This insurance provides the family of the policyholder the sum assured on an unfortunate event leading to the death of the policyholder.
Basis on the needs of an individual, there are different term insurance plans that would fit in the expectations. Choosing the right term plan is essential and listed below are the various factors to consider while choosing your Term plan.
If you are looking for old fashioned vanilla insurance that would cover your family after your death, then it is best to choose one that has an assured sum of at least 20-30 times of your present income.
Insurance with Accident Cover
Accident coverage gives a higher benefit at a lower premium. This gives an added benefit by insuring you against accidents like a road accident and giving your family an added benefit along with the lumpsum payment.
History of Critical Illness
If you have a family history of critical illness, then it is necessary to go for a critical illness rider on the term plan as solely health insurance wouldn’t be able to cover the expenses.
Regular Income Plan
You can also opt for a plan that helps to get your family a regular income along with the assured sum after your demise. This will also ensure that the standard of living of the family continues to remain the same, even in your absence. But before choosing this kind of plan, it is vital to check that the income received is tax-free.
Flexibility in Choosing the Pay Out
You can choose the pay-out option of the assured sum before you Zero down on any policy. At times a lump sum amount can lead to squandering and eventually lead to disastrous financial outcomes. Choosing the pay-out that equally divides the accumulated sum over time can be beneficial in managing the finances of the household.
Getting the best
We often get drawn to buying a policy that has the lowest premium, but low doesn’t mean the best. It is always apt to choose the policy that is competitively priced rather than choosing the one that is the cheapest.
Choose your insurer
Whoever insurer you choose, he or she must be capable of fulfilling the promise with credibility and integrity. As the money that is received by your family would be in your absence, so choosing a highly credible company is paramount. Also, you would need to check the claim settlement ratio of the company with the conditions mentioned by IRDAI.
Along with these factors, while choosing a term plan, it is essential to choose a policy which gives you an ease of accessing the policy from wherever you are and whichever device you use. Compare all the prices of the policies online and then finalize on any term insurance plan.