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Bengaluru, April 16: Financial protection is very necessary for our loved ones in these uncertain times. An insurance solution to protect the family’s future in case of an unexpected disaster.
Term insurance is the cheapest and safest life insurance which is known as term insurance. However, there are several factors that must be carefully considered in order to properly identify and choose from this myriad of options.
Before buying a term insurance policy, it is very important to sort out the key ingredients like coverage amount, policy term, premium payment methods, and who the insurer is. This article contains the information you need to help you make the right decision and secure your family’s financial well-being.
Before buying a term insurance policy in India, consider these five important points:
1. Amount of Coverage:
First assess your financial needs to determine the appropriate coverage amount. The sum assured is sufficient to cover your family’s lifestyle, repay any outstanding loans and future expenses like children’s education and marriage.
2. Policy Term and Policy Term:
Longer policy terms give better coverage but higher premiums depending on your financial goals and financial liability coverage period. So consider your age, retirement plans and financial obligations while deciding the term. Policy term refers to the period for which the insurance cover is valid. Your family should have a tenure dependent on your income. Factors like the age of your dependents, your existing loans and your retirement age should be considered while choosing the policy tenure.
3. Research and Rider Options:
Don’t just pick whichever one you see first. Insurance Plan It is time to compare the offers of various insurance companies. This will help you get a better understanding of the current coverage options, premiums and riders. You can use an online insurance comparison platform to facilitate this planning.
Common riders include accidental death benefit, critical illness cover, disability rider and waiver of lover’s rider. Assess your needs and choose the riders that maximize your financial protection.
4. Claim Settlement Ratio and Selection of Representative Airmen:
Research the insurance company’s claim settlement ratio, which indicates its reliability in settling claims. Look for a reputable airline with a high claim settlement ratio and a good record of customer service. Read reviews, get recommendations and compare insurers before making a decision. A high CSR indicates an insurer’s good record in honoring claims. For peace of mind choose a company with a consistently high CSR (above 95%).
5. Honestly disclose medical history:
While applying for term insurance, be completely honest about your medical history. Don’t lie about information like your age and health status because an insurance company caught while checking them has every right to reject your claim. Thus it is known that future complications are prevented.
Apart from the above, there are various premium payments to choose from such as annual, semi-annual, quarterly or monthly payments. Enter the mode that suits your budget and cash flow requirements.
English summary
Realize these 5 things while buying term insurance
Financial protection for our loved ones is very important in this uncertain world. Term insurance provides a solution to protect the family’s future in case of an unexpected calamity
Story First Published: Tuesday, April 16, 2024, 10:31 (IST)