Term insuranceis a popular option that individuals opt for today to ensure their family’s have a safe and secured future. This product is not only the best way to insurance your family’s future, but it carries a lot of trust factor as well. Being in the market for a very long time, people are well versed with its functioning and are comfortable with it as well. But before you purchase any product, especially financial, there are a few questions you need to ask yourself –
Why do you need the policy? When buying a term insurance policy you need to first be sure of why you need it. For example, do you need the policy for the financial security of your family, do you need it to cover a mortgage or a loan etc. These needs will determine the kind of policy you need, the tenure and the sum assured. It is important to remember that most of the people who choose a term life insurance tend to live beyond the tenure period. This means that you have completed most of the responsibilities you had to take care of, and you leave with less financial burden for your family.
What happens if you out live the insurance policy tenure? There are a few things you need to be aware of in case you live beyond your term insurance tenure –
• If you are approaching the end of your policy and wish to extend the tenure, the premium amount will increase • At the end of your term life insurance policy you have the option to apply for a new policy
What are the premium charges? Check for the premium amount while looking for a policy. Compare the cost of each policy in the market that suits your needs and ask the company questions like – Could the premium amount increase in the course of the policy and why would that happen? What are the options I have to make a payment? Is there any flexibility in the term of premium payment? What happens if I miss paying a premium?
What does the policy cover? It is very important to check the benefits or cover the term insurance provides you. So check the circumstances the policy offers cover for, check if there are any special provisions for child education, understand the tax benefits of the policy, how prompt is the claim settlement process etc.
How can I buy a policy? There are two ways in which you can avail a term insurance policy – offline and online. The online mode has grown pretty popular as it gives you the ease of comparing the policies, researching on them and buying them in a hassle-free manner at your convenience. Also, you can avail better premium rates if you opt for the online mode of shopping.
Top 5 questions to ask yourself