When it comes to your life and the security of the people who depend on you financially, there is really no space for taking chances. When buying insurance, you need to be sure that you are doing everything in your power to leave your loved ones with enough financial stability when you are not around. For this, buying the right life insurance plan is very important. A term plan can really prove to be a boon because it offers you a good amount of sum assured for an affordable premium. If you are wondering, what is term insurance, you should know that it is a life insurance plan that you can buy for a specific period of time. If something happens to you during that time when your family gets a sum of money from the insurance company.
When buying a term plan, doing thorough term insurance comparison is important. Here are a few things that you must keep in mind.
- Provide detailed information
One of the things that the term life insurance providers offer these days is a discounted premium for people who do not drink or smoke. This is very tempting and surely, you would like to identify yourself as a non-smoker in the form, but make sure that it is not a lie. Wrongful information in your application will only hurt you. The same is true for your health condition or your family’s history of illnesses. You should not lie in your form because that will result in rejections. Being truthful will cost you a little more, but providing false information will result in rejection when a claim is made.
- Medical test
When buying a term plan, you need to make sure that you are not falling into a trap. The reputed insurance companies make you go through a series of medical tests to ensure that your health condition is what you have claimed it to be at the time of application. If you find that, an insurance company is not asking for tests then that is a sign that they might reject the insurance claim in the future by stating that you had provided them with false information. This makes it simple for you to find the right term plan when you are doing the term insurance comparison. Do not go for the insurance providers who do not ask for extensive health checkups.
- Premium is not the first criteria
From all the life insurance plans, the term plan is the cheapest one. It only pays the money if the policyholder dies before the policy expires. Hence, you can get a big cover for minimum yearly premiums. That being said, it is human nature to think about money when buying something. Avoid making that mistake when buying a term plan. Buying the insurance from a respected company makes sure, that your loved ones will be safe when you are no more. For example, you may have to pay a couple of thousands more annually when buying Bajaj Allianz Life insurance, compared to a newer insurance provider. However, Bajaj Allianz Life comes with the assurance that you need when getting yourself a term plan.
- Length of the policy
When you buy term insurance, make sure to get the length of the policy right. The main goal of a term plan is that if you die, the people who depended on you financially get a certain amount of money that can cover for the amount you would make otherwise from your employment. For this reason, the policy tenure should be at least as long as the remaining years of your service.
You must consider the aforementioned factors carefully and then select a term plan that suits your requirements.