How to Buy the Best Term Insurance Plan?

How to Buy the Best Term Insurance Plan?

- in Finance

Warriors are those who would rise like a phoenix even at times of a catastrophe. But to do so, one certainly needs will! The willingness to confront any such hurdles is possible only if one is armoured with the weapons of all sorts. Armored weapons in this regard to meet any sort of financial emergencies, untimely death, accidents, etc., are insurance plans. Amongst the myriads insurance plans we have in the marketplace, the term insurance plan is considered the most affordable.

There are both traditional as well as tech-savvy ways to choose a term insurance policy. But many would prefer to buy them online these days as there are no agents or middle-men involved.

Buying plans online are not only hassle-free but quick and easy too. One just needs to determine their requirements and financial stability, and then compare and choose amongst the filtered out policies available that match your requirements.

Essentials to buy the term insurance plan online.

Policies can be bought both online as well as offline. But nowadays people prefer buying them online as they are easy, quick and hassle-free. There are different types of term plans available

  • Pure term plan: In this plan, you only need to pay for the premium and the company pays the dependents the sum assured after the demise of the policyholder.
  • Decreasing Term Insurance: In this plan, the premium to be paid is low and keeps decreasing with each passing year. This is availed by keeping in mind any debts that may fall upon the policyholder.
  • Increasing term insurance: This is just the opposite of the one mentioned above. It is availed keeping in mind any future expenses like education or marriage expenses.

Term insurance plans can be regarded as policies that offer you the protection of your loved ones even in your absence. If protection is your priority, then term insurance plans are surely the best! They are worth the time and money!

To complete the procedures you need to furnish certain documents. They are listed below:

  • PAN card is the foremost document to be furnished. Apart from that, any of the following documents can be furnished as an identity proof:

○    Passport copy

○    Aadhaar copy

○    Voter’s ID

○    Driving license copy

  • Any of the above documents as proof for address
  • Documents for proof of income

Why your plan should be the best term insurance plan?

No matter how much you earn per annum, anything undesirable like premature death, critical illness, accidents to the breadwinner of the family are all bound to rupture the financial stability. This causes the surviving members to struggle inevitably to make both the ends meet. But fortunately, in case the insured has opted for a life insurance policy like Term Plan, then certainly the consequences won’t be that worse. The plan will help you cover financial debts and meet financial obligations if any.

Investing in plans that later fail to meet your requirements would turn out to be a blunder. So to make sure that the plan you have chosen is worth the time and money, you need to compare the policies based on the following factors.

  • Life cover: The plan that you opt for should be capable of providing you with money for children’s education and marriage even in your absence. So choose a plan that covers almost anything!
  • Premium: Choose a plan that offers a maximum sum assured for the lowest premium to prevent the draining of your pockets. Make sure that the features of the plan are constant throughout the policy term.
  • Check terms and conditions: People often commit the mistake of not reading the terms and conditions especially exclusions thoroughly. It is always advised to look upon the whole terms and conditions before finalizing on the plan.
  • Company’s credentials: Make sure that the company you choose is credible in terms of its experience in the field, claim settlement process, etc.
  • Riders or Add-ons: Choose a plan that offers you important riders like an accident, critical illness coverage, etc.
  • Flexibility: Choose plans that are flexible. This means that, it allows you to increase or decrease the plan tenure according to your needs.
  • Dig into the claim settlement process: Make sure that the company you have opted for, provides you with quick and easy claim settlement procedures without much delay.
  • Return of Premiums: Many plans usually don’t provide the money back if one survives the policy term. But now, there are companies that offer to return the entire amount paid as premium, back to the policyholder even if he/she survives the policy term.
  • Ease of dealing: Make sure that the insurance company you have chosen can cater to all your requirements.

Affordable and reliable, best term insurance plans are worth the investment.

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