A term plan has been a part of the insurance sector for quite some time now. After its introduction, a term plan has become the most affordable form of insurance. Although a term plan can be relatively cheaper than other insurance policies such as endowment plans, money-back policies, whole-life insurance, and so forth, many of you might still not be fully unaware of the product. Lack of unawareness can lead to miss-interruptions about a term policy. Before you buy term insurance, let’s understand the most common questions you should ask yourself:
Why should I buy term insurance?
The unpredictability of life can be high. Due to the rising uncertainties, unfortunate events such as loss of income, physical disability, death, etc. If anything happens to you, your family might suffer emotionally and aandfinancially. Therefore, you should buy term insurance to ensure your family is secure in your absence, even during an emergency. A term plan can offer financial support to maintain your loved ones’ standard of living in your absence.
Does a term plan offer death as well as survival benefits?
Typically, a term plan would solely offer a death benefit to your family members after your demise. However, many of you might have felt that purchasing a term plan only for the death benefits can be expensive. Hence, many insurance companies introduced a smart term plan that can be a complete plan with death and survival benefits. While death benefits can be offered in your absence, the survival benefits can be returned as a premium after maturity.
Can I increase my term coverage?
Today, increasing the term coverage value can be increased after crossing specific milestones such as getting married, planning to have kids, and so forth. As you cross the various milestones in your life, you can increase your coverage under a term policy to protect your financial requirements. However, the premium amount can vary with an increase in the term coverage. While buying term insurance, check with your insurer to confirm the premium rate after increasing the coverage value.
Will I be able to cover my spouse under the same term policy?
The primary aim for the formulation of term insurance can be the financial protection of your loved ones. Since your spouse might depend on you financially, your term plan can cover your spouse under the same plan. When you jointly cover your partner under the same term plan, your insurer will offer your partner’s death payout in your absence.
What are the available riders under a term plan?
Many insurance companies can offer you riders to enhance your base term policy. Typically, riders can cover a specific event or an incident that your base term plan does not cover. The most common type of rider provided by every insurance company can be a waiver of premium rider, a critical illness rider, a physical disability rider, and an accidental death rider. At the time of purchase, see that you avail only of the riders necessary. If you buy many riders, your premium value can increase. In simple terms, the higher the riders, the higher the premium.
Smoking can have hazardous impacts on you. When you smoke, you put your life at stake. Since the chances of death can be high, your insurer might charge a relatively higher premium than a non-smoker’s. As highlighted above, many of you might have questions about term insurance, although it has been a part of the insurance sector for a long time.
While the basic ffrequentquestions can be resolved by researching the term policy, a professional’s technical aspect should be solved. The right help can help you select term insurance that matches your financial requirements and cover you adequately against unfortunate events.
