A term insurance plan is a very popular insurance plan today. There is a growing demand for term insurance across the country because it acts as financial support to the family in case of an unfortunate incident. However, there are many people, who do not invest in a term plan because they think that it does not give any returns. However, it is important to look at the bigger picture and choose a plan, which will protect your loved ones in case of your absence. Here are a few things you need to keep in mind when you buy a term plan.
Get a cover that is 20 times your income
When you buy the cover, it is very important that you choose an appropriate amount of sum assured. It is advisable to cover yourself up to 15 to 20 times of your current annual income. You need to consider your current salary, annual family expenses, inflation, and the future needs of your family.
Buy at a young age
If you delay in purchasing the plan, you will end up having to pay a higher amount of premium. With age, the coverage decreases and the amount of premium increases. If you want to get a comprehensive cover and maximum benefits, it is important to ensure that you buy term insurance at the earliest.
Do not fall for plans that offer a low premium option. Instead, compare the plans and understand their features before you invest in a term plan. You need to look at a long- term plan that offers a wider coverage and is ideal for your needs.
Be truthful to the insurer
Never lie or hide any information to your insurer. If you have any medical conditions and you hide them from the insurer, your claim has higher chances of being rejected. You need to be very honest about your lifestyle, health, and medical conditions. Do not put wrong information about yourself and disclose everything in the form.
Make a smart investment by opting for different ways that can help enhance the insurance cover. You can get a comprehensive insurance cover by adding riders to the policy. You can choose from the different riders available and get an additional cover for an additional cost. The riders will help you in times of an accident, loss of income, and disability.
It is a wise decision to buy a term plan. It will provide for the security of your family in case of an untoward event. Hence, you need to choose a plan very carefully. Compare the plans available and then make a wise investment decision.