We all know the importance of having a life insurance plan and the role it plays in keeping our family secure One amongst the most important goals of one’s life is to secure his/her family’s future. Life Insurance is the simplest way to protect your family against uncertainties in life and financial losses associated with them. Regardless of the funds you have accumulated or invested over the years, certain eventualities, such as critical illness or death, substantially affect your family’s financial condition. Buying term life insurance is all the more important if you are the only bread winner in the family. It covers for the loss of income that may come upon your family in your absence or if one falls critically ill.
As there are many plans available in the market today, we need to select the one that is suitable for us. Here are a few easy points to keep in mind when buying a Term Plan:
The most critical step in buying term insurance is calculating the required amount of coverage. You should avoid the mistake of under-insuring yourself as it will not serve the idea behind purchasing insurance. As recommended by experts, one should buy a policy with a death benefit at least 8-10 times his gross annual income. However, pertaining to the diverse needs of every individual, one should also consider factors like annual income before taxes, needs of the dependents, and the age factor. To find out how much cover you should opt for, click here Human Life Value Calculator.
While evaluating the available options, you should definitely consider whether the sum assured will be able to meet your family’s future requirements.Remember, that what you spend today might not be sufficient tomorrow; therefore, it is essential to keep the inflation rate in mind while assessing your needs.You can also use the Term Insurance Calculator to calculate the premium you would have to pay. For instance, a 30-year old non-smoker would have to pay Rs.515 p.m. as premium for a cover of Rs. 1 crore.
The next important step is to select the right insurance company based on:
Policybazaar helps you with a platform to compare and evaluate so that you get the best deal.