Life is full of uncertainties, and death is one of the most devastating ones among them. One moment can change the entire life of a family. Not only it can cause emotional suffering, but it can also hurt them financially. To tackle such a scenario, you can buy term insurance to ensure your family’s financial well being if you are not there to take care of them in the future.
However, before you buy a term policy, you should follow the below-mentioned five steps:
1. Decide on the amount of cover required
If you are wondering how to choose best term insurance plan in India, you should start by figuring out how much cover you need. The sum assured should be enough to cover the regular household expenses, education of your children, and your debts. Also,remember to factor in the possible future medical expenses of your family.
2. Finalize on the tenure of the term policy
The tenure might depend on the term insurance eligibility as some insurers offer policies with a fixed duration. However, you should consider opting for a cover that lasts until your retirement. Having a cover until your retirement makes it more secure for your family. If you are 30 years old right now and want to work until your 60s then choose a term policy that has a tenure of 30 years.
3. Do not ignore inflation
When purchasing a policy, consider the effect of inflation. If you find yourself asking ‘‘how much term insurance do I need’’, you need to understand that the cover that seems sufficient today, might not be enough after 20 years. The smartest thing to do would be to revise the cover every few years as the cost of living increases. You can also opt for a policy that offers to increase the sum assured by 5% to 10% annually.
4. Buy the term plan online
The Internet has revolutionized the life insurance industry. You can now buy a policy in minutes, right from the comfort of your home. Buying the online term plan comes with many other benefits too. You can compare different policies easily and determine which one meets your needs. Buying a term plan online also makes it possible for you to get the policy directly from the insurer’s website, without needing an agent. This will save you a lot of money as well.
5. Purchase the most affordable plan
The guide on how to choose the best term insurance plan cannot be completed without suggesting how to find the most cost-effective policy. To do so, you need to thoroughly compare different insurers. You will find that the premium varies depending on the insurer and the policy. Hence, you have the chance to find the most suitable as per your budget.
Now that you know how to choose term life insurance,you can make an informed decision. This way, you can be sure that you have opted for a product that secures the financial future of your family.
