How to Strengthen Your Term Insurance Cover?

How Can You Increase Your Term Insurance Cover?

A term insurance plan keeps your family safe and secure financially. The money obtained from term insurance can be used in the future to pay off loans, child’s education, and their marriage. Financial conditions might change over time because of the uncertainty of life. Moreover, inflation is also an important part that should be taken into consideration. Assessing the right term insurance coverage is not easy. So, there are several ways in which you can grow or strengthen your term insurance cover along with your liabilities. Here are some of the ways by which you can increase your term insurance cover:

Note: Know more about what is term life insurance first before reading this article.

Purchase Additional Life Covers 

Buying additional life cover is as easy as you can apply for other life insurance or a new term policy with significant growth in your income. This is how you can upgrade your existing term insurance policy. In case if you are older and suffering from a new health condition, there are chances that your upgrade might be very costly. In some cases, the upgrade scheme might get rejected due to health or age-related reasons. 

Select a plan with life-stage increment – In this, you can easily ask the insurance company to increase the sum assured of the plan at certain pre-specified points in life. However, the plan should have this type of option at the time of purchase. This parameter enhances the protection in the critical times of your life.

Choose Increasing Cover Option 

Increasing term insurance cover is where the sum assured amount of the plan automatically grows yearly. Here, you are not required to buy another plan; you are not even required to submit the increment request. In this, you are not required to undergo a medical examination and there is no risk of your upgrade getting rejected. The policy will upgrade systematically without you having to interrupt every time. Let’s discuss some of the term insurance benefits of choosing increasing cover: 

• One Premium – Purchasing a new policy by paying an extra premium with a manual upgrade depends on your age and health status. With the help of an increasing term cover, a single policy, and a single premium are required for a lifetime. 
• Increase Automatically – While upgrading manually, you are required to submit documents, have to sign few declarations and undergo fresh medical examinations, etc. Different T&Cs are also applicable under such schemes. Now in increasing cover, no new documents, forms, medical tests, or declarations are required. There are no additional T&Cs that you will have to sign to maximize your sum assured amount. This is done automatically. 
• No Rejection Risk – At older ages, if you decide to manually upgrade your policies, there are chances that you are required to pay more premiums due to age or due to any medical disease or illness you get diagnosed during these years. In increasing covers, you do not have to panic about paying extra premiums or the rejection of the policy. 

Note: You can easily calculate the term plan premium by using the term insurance premium calculator online tool.

Covering Other Unexpected Situations 

Does term insurance cover disability? If yes, then why it is important? If you live till 65 years of age, then you care enough to take care of your family. If you die at an early age and have a term plan, in such cases the pay-out from the plan will take care of the financial requirements of your family. What if you survived till 65 but suffered from disability at that age? In such cases, a one-stop solution is disability riders that pay a lump sum amount. This amount can be used to fulfill the financial requirements of a family. 

Wrapping It Up!

Overall, as you have seen that choosing an option of increasing cover while purchasing a term insurance plan might be good for easy management of the policy. Also, it takes care of the easy management of the claim processing by your loved ones. This is a hassle-free and automatic process. It does not require you to undergo any medical examination or have to submit any fresh documents. It is always suggested to choose an increasing cover and disease and disability riders to strengthen your term insurance plan.

Note: Check out the best term life insurance in India and choose one that suits your requirements.