{"id":3463,"date":"2018-10-20T09:00:36","date_gmt":"2018-10-20T03:30:36","guid":{"rendered":"http:\/\/capitalante.com\/?p=3463"},"modified":"2019-02-19T18:59:06","modified_gmt":"2019-02-19T13:29:06","slug":"8-points-to-consider-while-buying-a-term-insurance-plan","status":"publish","type":"post","link":"https:\/\/capitalante.com\/8-points-to-consider-while-buying-a-term-insurance-plan\/","title":{"rendered":"8 Points to Consider While Buying a Term Insurance Plan"},"content":{"rendered":"

The scheme, term insurance policy is to secure the immediate needs of nominees or beneficiaries in the event of the sudden or unfortunate demise of the policyholder. Under this policy, you set an amount as insurance for unfortunate death. You need to pay\u00a0insurance premium whether monthly or quarterly or yearly basis till the term you opt for. During the policy term, if you die, the amount you have opted for will be credited to the nominee\u2019s bank account. There is no monetary benefit if the insurance holder is alive till<\/g> the period of term plan. The subscriber is free to choose a term plan in accordance with his time horizon i.e., up to 60 or 70 or even 80 years of age. Now, in this column<\/g> we will discuss the 8 points to consider while buying a term insurance plan.<\/span><\/p>\n

8 points to consider while buying a term insurance plan<\/span><\/strong><\/h6>\n
Buy term insurance policy as early as possible<\/span><\/h6>\n

The most important thing is you should buy a term insurance plan at an early age. Whenever you start earning you should take a term plan. The earlier you take a term plan, the lesser the premium will be for the term plan. Suppose, you buy a term plan at the age of 24 and you want to continue this plan till the age of 60 years. So, the duration<\/g> the term plan is 36 years. You can easily avail up to Rs. 1 crore as your life insurance for just Rs. 6000\/- yearly. But if you delay for 5 years you need to pay a yearly premium of Rs. 8000\/-. And you will remain uncovered or vulnerable for these 5 years also.<\/span><\/p>\n

\"8<\/a><\/p>\n

Buy term plan till the age of 60 years<\/span><\/h6>\n

Should you opt for a term plan till the age of 80 years? The clear cut answer is no. You or any individual should buy a term plan for the age of 60 years only. It does not matter what the individual\u2019s current age is. When you are young, you are bound to fulfill many financial responsibilities in your life. At the early<\/g> age, your earning also remains little and limited. So, it makes sense to take a term insurance plan in accordance with your need in case there is uncertain<\/g> demise or loss of physical ability.<\/span><\/p>\n

The life after the age of 60 years is considered retirement life. After this age<\/g> any kind of loss can be tackled to some extent. Till the age of 60 years, a financially literate person accumulates a satisfactory amount i.e., assets for the rest of his life or for his family to run a happy retirement life. Again, until the age of 60 years a person does not remain the only earning member of his family and in most of the cases<\/g> that person completes all his duties or responsibilities. So, it is better to opt for a term plan till the age of 60 years.<\/span><\/p>\n

Buy the basic version of term<\/g> insurance plan<\/span><\/h6>\n

Now a day, term insurance companies offer various options to choose from. These choices are namely single premium term insurance policy, regular premium term insurance policy either monthly or quarterly or yearly basis etc. The single insurance policy enables an individual to take a term plan in which he has to pay a single premium. Then he does need to pay anything for the policy. <\/span><\/p>\n

Many policy holders<\/g> consider this type of single premium policy good and beneficial. It is because the subscriber has to pay at once a single premium and then he is free from any further payments. The policy will cover up his life. But if you carefully read out the terms and conditions of the single premium policy, you will find these one-time premium policies cover your life for 10 years or 15 years only, while you need a term insurance plan till the age of 60 years.<\/span><\/p>\n

Don\u2019t be misguided by \u2018per day premium\u2019 marketing strategy<\/span><\/h6>\n

Many insurance companies sell their term plan policies in a tricky way. They advertise that you can avail Rs. 1 crore insurance only for Rs. 25\/- per day. There are many such ads telecast in electronic media. Some people get trapped into<\/g> these kinds of plans. Then after some years<\/g> they find that they have been misguided or rather cheated. There are many terms and conditions hidden or imposed on these lucrative plans. These plans are designed or meant for a person under the age of 20 or 25 years. These lucrative schemes provide the coverage for a period of only 20 or 25 years of the subscribers. You need such a term plan that will cover your life security up to the age of 60 years.<\/span><\/p>\n