Term insurance offers comprehensive financial security to your loved ones in your absence with added perks and benefits. The premiums are affordable and the terms and conditions are easy to understand.
You can pick from a wide range of plans to suit your needs. Work with a top insurance house that offers easy eligibility, practical features, and basic documentation. Here are a few tips to choose an ideal plan for your family members.
Look for Flexible Policy Terms
Itβs good to opt for some flexible terms such as a 30-day grace period from the due date and a 30-day free look period from the date of commencement. Your term plan can range from a period of 5 years to 35 years, along with flexible premium payment. Some other benefits to look for can include a revival period of up to 9 months from the date of lapse. Check for these beforehand for great coverage without hassles.
Add Liabilities
Keep your debt situation in mind and add the outstanding amount to the cover. These usually include car, home, student, or renovation loans. This can reduce the EMI burden.
Life-Stage
At every stage in life, your financial liabilities evolve. As you raise a family, your responsibilities can include the cost of education for children, home maintenance expenses, and other loans. So, consider choosing the coverage amount accordingly. This will help you plan your future finances better.
Estimate the Expenses
Assess the current lifestyle of your family. This will give a rough idea of how much they might need in the future to sustain their needs comfortably without any compromise. Do add the inflation factor as well to plan the cover.
Keeping these in mind can help you purchase the perfect plan. Read the specifications, limits, criteria, and exclusions carefully before making a decision.
