Term Insurance Plans are simple and cost-effective life insurance plans that can offer a large cover for a low premium. Here are a few things to keep in mind while purchasing a term plan:
This is perhaps the most important consideration while applying for a life insurance policy. Understand how much cover you need keeping your current savings, current liabilities, future liabilities and inflation in mind.
Based on the age of the life assured, you can choose a policy term (no. of years for which the cover will remain) of 5 years to 45 years or more. Do remember that once fixed, the premium remains the same for the entire policy period. So it’s a good idea to get a policy till you reach the age of retirement, which is 60 for most people this will ensure that the cover extends throughout your working years. You can also tailor the policy period keeping in mind your loan payment years.
Simple term plans offer a single lump sum death benefit with variants available which extend the plan benefits to include monthly income (fixed or increasing) along with the life cover, at a higher premium.
Additional Coverage with Riders
You can maximize the benefits from your Term insurance plan by opting for additional cover for critical illness, accidental death or disability. These add-ons are highly beneficial and can be availed by paying a small additional premium.
Start by creating a free quote for your Term Plan to understand the interplay of cover amount, policy period, payout options & riders.