4 Things to Consider Before Buying a Term Insurance Plan

4 things you must know before buying term insurance: Cover amount, policy period, type of cover and company credibility 

Maximize your term insurance benefits by understanding how the plan features work

Term insurance plans are simple and cost-effective life insurance policies that can offer a large cover for a low premium. Here are a few things to keep in mind while purchasing a term insurance plan:

Cover Amount

This is perhaps the most important consideration while applying for a life insurance policy

Policy Period

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. On the other hand, a policy period can also be tailored to coincide with the paying term of a loan or a liability you might be serving.


Payout Options

Simple term plans offer a single lump sum death benefit while some insurance companies extend the option to receive life cover + monthly income (fixed or increasing), for a higher premium. To know more about how these variants can differ from each other, check out our online term plan

Additional Coverage with Riders

You can enhance the life cover of the Term insurance plan you buy to include additional sum assured for critical illness and accidental death or disability. These add-ons are highly beneficial and can be availed by paying a small additional premium.

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