Term insurance is better known as a pure form of life insurance. It is a policy that can provide financial security to your family at an affordable premium. You can get a significant amount of life cover at a lower rate.
In this article, we will focus on the do’s and don’ts while buying a term policy.
What is a Term Policy?
The beneficiary of a term policy is covered for some time by life insurance. Additionally, a lumpsum amount in the form of death benefit is provided to the beneficiary, which means that in the event of their demise, the chosen plan’s sum assured is transferred to the nominee.
Under personal financing, a term policy can be a very useful tool. Purchasing a term policy can ensurethe financial safety of your family.
What is a Term Insurance Premium Calculator? A Term Insurance Premium Calculator is an online tool used to find a suitable term policy for an individual according to their requirements. It is an easy and free-to-use tool with a user-friendly
interface. One has to enter the gender, their age, the amount of life coverage s/he wishes to purchase, and whether or not they smoke or consume tobacco.
Term Insurance Premium Calculator is also used as a comparison tool to search for the best-suited term policy for themselves.
How to use a Term Insurance Premium Calculator?
Term Insurance Premium Calculator is used to look up and compare the best term policy available in the market. If you wish to secure your family and your future from unforeseen emergencies, a Term Insurance Premium Calculator is the way to go.
Step 1: Search for a Term Life Insurance Calculator online.
Step 2: Enter your details – gender, do you smoke/consume tobacco, age, and the preferred amount of coverage – and submit.
Step 3: Enter some additional required details –
- Your full name
- Gender
- Date of birth
- Phone number
- Your salary in lakhs
Step 3: Click on submit/View premium, and the premium will be displayed on your screen.Additionally, you will have to choose –
- Cover till what age (Max. 85 yrs)
- Pay till age/maturity
- Mode of premium payment – monthly/annually
Step 4: Selection of add-on riders(optional)
- Critical illness
- Return of premium
- Accident cover
- Waiver of future premium
Step 5: The last step offers you various and the best term insurance plan for you to choose from and secure your family!
For example,Suppose you are a 25-year-old healthy, non-smoking female opting for a term life insurance coverage of Rs. 1 Crore. In this case, you would have to pay approximately Rs.882 monthly.
The Do’s and Don’ts of Buying a Term Policy
- Make sure the insurer or agent is registered with the insurance company. Fraudsters scam people as imposters selling term policies.
- Choose a trustworthy insurance company. Ensure that the company has a good market reputation and is financially strong with a high claim settlement.
- Fill out the proposal form with utmost honesty. Don’t provide any false information because it would be hard to rectify later on.
- Provide all your medical or health-related information to your insurer. They need to know about your medical conditions.
- Inform your family members about the term policy. It would make it easier for them in the future to claim the term policy.
- Don’t burden yourself with a very high life cover or a low-valued term policy. Choose a plan that will help you be financially stable in the future and help out your family.
- Don’t buy too many term policies at once. Keep it not more than two because it might be a hurdle with your current expenses.
- Read the terms and conditions of the term policy thoroughly. Be aware of what the term policy entails as a whole.
- Don’t fall prey to an expensive term policy. Additional coverage term policies might be expensive because of available riders.
- For better financial planning, choose a term policy with regular premium payments instead of a lump sum payment.
Benefits of Buying a Term Policy
- Critical and Terminal Illness Coverage:
Term Policy offers protection against life-threatening diseases and illnesses. In need of the hour, the beneficiary of the policy can get the medical bills covered by the insurance company. Choosing the best term insurance plan can help you save stress while at the same time you can easily settle the medical expenses.
- Additional Coverages:There are some additional coverages available on a term policy that you must know about:
- Waiver of premium: In the event of permanent disability, the life insurance coverage will continue without fail, requiring no further premium payments.
- Accidental Death: Term policy provides an accidental death benefit. The sum assured will be paid to the nominee if the policyholder passes while the insurance plan is still in effect.
- Income benefit: Term policy provides a monthly source of income to your family.
- Cost of premiums :
A term policy is easily available to us through a term plan calculator. You can compare the premium rates for high coverage plans through a term insurance premium calculator offered by different companies and get a good deal for yourself.
Now that you know the Do’s and Don’ts of buying a term policy,we hope you will make a wise decision.
Author Bio: Vinod Gill is a writer who specializes in writing content on Finance and Banking subjects. He is a Digital Marketing Consultant, Blogger, and Co-Founder of an event planner company in Gurgaon
