Decoding Insurance

A Beginners Guide on How to Buy Term Insurance Plans Online

A Beginners Guide on How to Buy Term Insurance Plans Online

We are all aware of the fact that uncertainty is the only certainty in life. In the wake of the recent pandemic, this fact has made itself clearer than ever. That is why it is important to be prepared for what may come in life. One of the better ways to augment this preparation is by getting Term Insurance. The purpose of term insurance is to ensure financial protection for the set life goals of an individual as well as their family. Term insurance is often purchased as a financial safety net that protects the family in the event of an untimely or unforeseen death of its bread-earner. In such a case, term insurance provides financial support to the family of the deceased and relieves them.

A standard individual has several goals and aspirations in life. Chief among them are those that pertain to the family, like buying a home, children's education, marriage, etc. The achievement of such goals depends upon significant funds. This is where term insurance steps in as a great instrument to tackle financial obligations of the future. However, the approach while buying a term insurance plan should be of investing in a secure future, and not buying a commodity or an ad-hoc purchase.

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Understanding Term Insurance

Term Insurance is the most genuine form of insurance as it only pertains to the protection risk, without any element of savings. Based on its function, it can be compared to, let’s say, car insurance. In the event of the policyholder's death, the surviving nominees receive the death benefits. However, if the policyholder survives the term, they get no additional returns.

Term plans are classified in several varieties like increasing cover plan, decreasing cover plan, plans with monthly payouts, or term plans with return of premium, etc. There is also a provision to buy optional add-ons like accidental disability benefit rider, medical rider, along with a term insurance plan to enhance its coverage for an additional cost.

Going Through With A Term Plan

With the changing times, the needs of the people are evolving too. To safeguard the interests of people with their fluctuating lifestyles, insurers offer term insurance as a smart decision towards a secure future. The prevalent trend suggests that the standard cover for a term insurance plan stands at Rs 1 crore, especially in metro cities. It means that most people today are looking for a term plan that offers the lowest premium for a sum assured of Rs 1 crore. Estimating an adequate coverage amount is the first crucial step towards making a sensible buy.

Mostly, the insurance cover needs to be about 10-15 times a person's yearly take-home income. However, other factors could influence these decisions like parental responsibilities, medical emergencies, etc. You can compare term insurance plans on Policybazaar.com and purchase the right cover for you at the most reasonable price. You can also use the term insurance premium calculator available on Policybazaar's website to get a better estimate of your sum assured.

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Points To Remember

1. After you have got yourself a term insurance plan, be sure to review your requirements once every five years. This practice is a measure that can help you stay on top of your financial requirements as times change.

2. Many people purchase more than one term policy with similar or differing covers simultaneously and drop one as their liabilities are reduced. If you buy a term plan from more than one insurer, be sure to submit details of the existing policy while filling your application form for the second. This helps maintain ethical transparency with your insurer and saves you from any confusion later.

3. Buying term insurance has become easier than ever today as you can get them both online and offline. After purchasing the term insurance policy, make it a point to talk it out with your nominees and explain to them the details of the policy.

4. It is advisable to select a term that at least equals your retirement age. By doing so you give yourself adequate time to shoulder all responsibilities and fulfill all goals.

Buying a term insurance plan gives you solid grounding and security. It also ensures financial support for your family in your absence and is hence a must for you and your loved ones. So, get your term plan today and invest in a risk-proof future.

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