Term insurance plan: An important purchase in investment kitty

Term insurance is one of the best insurance tools that will help you take care of your family when they are going through financial hardships in your absence. In today’s time of growing uncertainties, rising inflation costs, improved lifestyle habits, term insurance plans come as a boon especially for middle and upper-middle class segment of the society. These plans offer the maximum financial cover at optimum premium costs. 

However, they should not be considered as an investment as they do not provide any benefit upon maturity to the policy holder. In case you still wish to avail maturity benefits, you can opt for the return of premium term insurance plans which has such component added in the product. There are a lot of companies in the markets that offer various sorts of term insurance plans such as single pay out, lump sum plan or a single time included annual payouts.

Due to the ever-expansion of the insurance segment, many times customers get confused on various factors like premium costs, charges incurred on policy purchase, coverage amount, etc. It is advisable before going for any insurance purchase you can visit online sites and have a fair deal of comparison in terms of benefits & features, premium costs, company reputation, claim settlement ratio and then go for a suitable policy purchase.

While choosing your terms insurance plans there are few factors that has have to be considered such as:

Income Source: Although, no amount of money is sufficient when it comes to family well-being, however, practically speaking a figure has to be decided for coverage. This cover amount will be based on your income source, risk appetite, family members and their financial needs, debt in hand, etc. After having a thorough check on all these facts you can sit with your financial expert and come to a suitable conclusion on the insurance cover amount.

Death benefit – Term insurance plans provide complete protection and death benefit to the nominees as suggested by the policyholder. These plans don’t come with the maturity benefit components. The return of premium term plans will help you receive some form of maturity benefits. They would be slightly expensive compared to plain term plans. However, they can help you procure a premium at the end of the policy term. Depending on your financial situation and family needs you can opt for a suitable policy. 

Buy Early: Always focus on buying term insurance plans as early as possible, especially when you’re physically fit. One of the biggest advantages is that the premium costs will be comparatively low for a physically fit person compared to middle to old age person. You should purchase a policy at a younger age for a longer tenure. Once you’re grappled with any form of disease the premium is bound to increase

Buy Online: Term insurance plans sold through agents and brokers are definitely costlier compared to online selling. When companies sell a product online, the middlemen and inventory set up cost are saved. The benefit is directly passed to the customers. Online term policies are almost 30 to 40% cheaper compared to offline deals. Nowadays, as a result of advanced technology, you can browse for various lenders over the internet, compare policies, features, benefits, terms and conditions and then opt for the best term plan as to secure your family.

Choose the right alternative – Lot of websites provide insurance quotes from various leading insurance providers. To purchase an appropriate policy, firstly, you should evaluate your needs and then compare policies online quotes to get the best deals and offers.

Insurance needs – People who purchase online term insurance plans should review their financial circumstances from time to time basis and make arrange to pay an extra premium if required for higher coverage needs.

Customized policies – To get the best product, you will have to put in a little bit of effort by doing the research that helps you find the right option as per your requirements. There are questionnaires available on the company’s website. You can fill up and get term plan quotes in your inbox via email or text messages. Online sources are a good source of finding various customized products.