The Company you can Choose to Buy a Term Insurance Plan: Term insurance or protection plans, as they are commonly called, are plans designed for a fixed number of years, aimed at creating a temporary source of income in case of a sudden demise.
Why do you need it?
Uncertainty of life is something everybody grapples with, and term insurance planscreate a buffer action, allowing the family members to regain control slowly while being able to acquire some funds.
Whether you are the sole bread earner or not, protection plans are relatively hassle free. To make it more convenient, there are many firms that offer an online term insurance plan.
Some of the benefits include:
- In case of accidental death, additional sum is provided
- Complete coverage on demise of policy holder
- Coverage on critical illness, or disability of policy holder (through riders)
- Enables family to pay back loan amount
- Provides family members with financial independence
What should you look out for?
A simple online search would reveal a list of protection plans, and providers thereof, but which one should you choose? The best term insurance is one that allows you flexibility in designing a plan that is best suited to fulfill your requirements. Here are a few things to keep in mind:
- Duration of policy
The duration or term period of your plan shouldn’t be too less in order to pay less premium because with the increase in the average lifespan, this would prove ineffective.
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- Age of maturity
Most term insurance plansoffer longer term up to 35 years & coverage up to 75 years.
- Term Return of Premium (TROP)
Although in its essence, term insurance plans do not return the premium in case the policy holder survives beyond the term period, TROP plans offer maturity benefits. Due to this characteristic, they are priced higher as compared to plain vanilla term plans.
- Advantages to beneficiaries
Protection plans are constructed in order to safeguard the beneficiaries in case of demise of the policyholder. Ensure what kind of benefits can be enjoyed by them.
- Add-on benefits
Benefits like Critical Illness, Accidental Death Benefit, Total & Permanent Disability Benefit, etc. can amplify the plan. However, compare these independently and as add-ons to decide what works best for you.
- Claim Settlements
Before zeroing down on one insurance company, conduct research regarding their rate of settlement. Although many claims are rejected owing to genuine reasons, a high score speaks for itself.
- Duration of Settlement
If an insurance company takes too much time to settle or reject claims, that is a red flag. In order to make it convenient for your beneficiaries, select firms accordingly.
- Do not get fooled by low premiums
If the only advantage of a certain plan is a low premium, think again. Such plans may be generally cheaper only due to a high level of exclusions.
Whichever company, and policy you narrow your search down to, enquire and erase all your doubts before purchasing it. Treat insurance as an investment in your future and family’s well-being rather than a stand-alone financial investment.
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