Categories: Business

When is the right time to buy term insurance If you are thinking of buying term insurance, then there can be no better time than today

Photo: SUGGEST POLICY

When is the right time to buy term insurance

If you are thinking about buying a term insurance plan and are waiting for the right time to buy it, then we want to tell you that the best time to buy a term insurance plan is today. When you buy a term insurance plan, your age is the most important factor in deciding the life insurance premium rate for it. You remember the old times and say that I should have taken term insurance when I was young, it is better that you buy term insurance today. With each passing day, your age is increasing, so keep in mind that your premium will increase equally.

What is term insurance

Term insurance is a security life insurance plan, which covers the risk of premature death of the insured during the policy term. Term plan provides life insurance to the insured at the lowest premium.

Why is term insurance important

Life is very unpredictable and uncertainty can deceive you emotionally, financially and physically as well. This is because no one has control over one's death, nor can anyone predict. The death of the family earner can cause distress in the life of the family member. To find solutions to these problems, term insurance plays an important role in your life. In addition, a term plan is an excellent way to create a financial safety net and is the simplest and most economical type of life insurance.

This will help your family repay your debts and pay for some needs in your absence. The death benefit is paid to the beneficiary or nominee only on the death of the insured person. Therefore, in simple words, if the insured person dies after the expiry of the policy then the death benefit is zero.

How term insurance works

Term insurance offers a higher sum assured at lower premiums. During the policy term, the insured's risk of unexpected death (natural or accidental death) is covered. If the insured passes away during the policy period, the insurance company pays the life insurance amount (the sum assured) to the nominee mentioned in the policy document.

The payment of the sum assured is based on the type of payment option selected at the time of purchasing the term plan. Payments can be lump sum, lump sum and monthly income payments, or monthly income payments chosen at the time of purchase.

Characteristics of term insurance

  • Provides life insurance to the insured during the policy term and provides financial protection to your family from the risk of unexpected death
  • Provides financial security to your family through a scheme suited to your income
  • Check-in period is provided for free
  • Additional optional riders to increase basic plan coverage
  • Offers low rates to non-smokers and women
  • Flexibility in choice of policy term, premium payment mode, premium frequency etc.

Benefits of term insurance

  • Provides financial security to your family in your absence
  • Highly insured at the lowest premium
  • Facility to buy term insurance online
  • Tax benefits on premiums and payments under Section 80C and 10 (10D) of the Income Tax Act, 1961

Who should buy term insurance

Ideally, everyone should buy a term insurance plan. However, if you are the sole earner or are contributing to the family income, then you should buy a term plan. Nevertheless, those mentioned below should definitely buy a term plan:

  • If you are financially independent and want to provide financial security for your family
  • If you are the only breadwinner in the family
  • If you have dependents- parents, spouse etc.
  • If you are single and planning to start a family
  • If you are running a business or startup
  • If you have children and want to secure your future even in your absence
  • All those who do not want to see their loved ones struggling to maintain their way of life after the death of the earning member of the household, should buy a term insurance plan.

This is most important for people with the following profiles:

Bank loan or any outstanding liability

So, you have already built a huge mountain of housing loan, car loan, business loan and mortgage property. When you are gone forever, you have no idea how your family will repay your outstanding debts.

Difference in income

Suppose you are the sole earner of your beloved family and some unexpected situation arises. How will income be changed due to loss of regular income? How will you fill this gap? Therefore, to get a better idea of ​​the sum assured, compare the term insurance quotes of various insurance companies online. This will help you in maintaining the current lifestyle of your family members in your absence.

This post was published on August 22, 2020 1:48 pm

Content Team

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