5 smart steps before taking term policies!

1
Online Term Insurance
2
5 smart steps before taking term policies!
3
Life is very unpredictable you never know what
is going to happen in next few hours. This is the
sole reason why we always plan to take insurance
policy and cover all sort of contingencies. If
you have dependents, you need insurance which
will give you confidence that after you, your
dependents will easily be financially protected
through the cover of policy. Life insurance is
a good way to protect your dependents and term
insurance is the best and economical option in it.
4
Online Term Insurance is gaining huge popularity
in last few years. Since companies have dropped
the premium rates, they advertise these policies
in big way. Also, companies have started online
option to get the term policies which proves to
be very convenient while buyers can compare and
choose their own term plan. Rs 20 in todays
picture are not sufficient even to buy 2 kg of
vegetable but it is an adequate amount to buy a
term insurance policy with a cover of Rs 49.99
Lac for a day. Today, financial planners
challenge that a term policy is the best type of
insurance as it provides a high cover at low
cost. The amount of premium you pay is merely a
fraction of amount which you have to give when
you purchase an ULIP or a money back policy of
same coverage.
5
1. Amount of cover you need?
The cover of life insurance means the amount
which dependents of policyholder require to
replace his earnings in case of his death.
Always keep in your mind before buying term
policy that your cover should be enough to cover
basic expenditure, key expenses like marriage of
children and other accountability like loans if
any of the dependents. 2. Till when you need
cover of insurance Knowing the actual tenure of
term plan is as important as knowing the amount
of cover. An insurance policy should at least
give the cover to the policy holder till his
retirement. However, people now intend to work
even after reaching age of 60. Besides, late
marriages and having children at higher age makes
responsibilities not to end at age of 60.
According to insurance experts, a person needs a
cover up to the age of 65. It is advised to take
a term plan which gives you flexibility to fix
the tenure as circumstances vary from person to
person.
6
3. Also factor the inflation At the time of
purchasing a term plan, do consider the inflation
factor with it. A cover of Rs 50 lakhs looks
sufficient in todays scenario but after 20
years, may be amount seems inadequate due to
rising inflation. To get over this problem,
many companies offer plans in which your cover
will increase by 5 10 every year. 4. Go for
online Term Plan Nowadays when every insurance
company has launched its online term policy, its
better to opt use such facility. There are two
benefits of choosing online policy one is you
can choose after analyzing all the plans and
second is, it is more cost effective as no
broker or dealer is linked which in other way
save broker charges.
7
5. Choose the most economic plan If we compare
plans of different companies, then we will find
their premium charges to be different. It is
advised to choose the most economical plan from
all the companies. If you prefer any of the
company, then do compare that it would not cost
very much than the other companys plan. However,
if the claim ration is good in any specific
company then you can prefer that over others.
Source https//www.bajajallianz.com/Corp/term-in
surance/isecure-insurance-plan.jsp
8
Follow us on
https//www.facebook.com/bajajallianzlifeinsurance
ltd
https//www.linkedin.com/company/bajaj-allianz-lif
e-insurance-co-ltd-
http//plus.google.com/bajajallianz/posts
https//twitter.com/bajajallianzLIC
https//www.youtube.com/user/jiyobefikar
https//instagram.com/bajajallianzlifeinsurance