Choose Best Online Term Insurance Plans
You consider yourself to be tech-savvy, are well educated and well connected which allows you to have access to up-to-date information. However, you end up not making the best decisions when it comes to your finances. You follow the “You live only once” principle and insurance do not appear in your list of priorities. You tend to spend your money on the latest gadgets, fine dining and expensive clothing while the need to get insurance goes in the background. It is not that you are running away from your responsibilities, but the complexity of terms and conditions makes it so hard for you to choose the best term insurance plan. You have heard of various insurance policies but are at a complete loss to decide on the best term insurance plan for yourself.
Here, we bring you some key features that will help you decide on the best term insurance plan for yourself.
How much cover should you get and where from?
Make sure that your insurance cover is enough to replace your earnings and take care of any outstanding debt. The simple rule to go by is to get cover for at least 8 to 10 times your yearly income along with outstanding debt. And remember, you do not have the best term insurance plan if it is not going to pay in time. So, always buy your insurance from a company that has a good claim settlement history and can be trusted to provide good customer service.
Increasing cover plans
In case of such term policies, the cover increases with passing time to help with inflation. If you go with such an insurance policy, you will not need to buy more cover in later parts of life as your responsibilities increase. However, do note that the increase in insurance coverage may not always be enough to beat the pangs of inflation. Before you decide on the best term insurance plan for yourself, compare the benefits of increasing cover plans against the higher premiums you will have to pay – a regular term plan may offer higher coverage at almost the same price.
These kinds of plans take a one-time upfront payment to provide you cover for the entire term. If you are someone who does not want to get into a commitment that requires you to make yearly payments or if you are careless with your payments, this may well be the best term insurance plan for you. You do not have to worry about a lapsed policy due to missed payment.
Limited payment term plans
With limited payment term plans, your payment is distributed over 5 to 10 years. The best part about these plans is that the insurance cover continues long after the premium payment term is over. These plans work great for young people who can afford to make higher investments at the beginning of their career.
Staggered payment plans
Instead of paying a lump sum amount, these plans stagger the payments over 10 to 15 years. Such a plan proves to be the best term insurance plan for families with low financial literacy, as they may not be able to handle the lump sum amount pay-out. Some of these plans even increase the payments by a fixed percentage each year to take care of inflation.
Return of Premium
There are some policies that give you your entire premium back at the end of the insurance term. These policies have considerably higher premiums and the return is not great if you consider the inflation-adjusted value.
We would like to emphasis that the tenure of the insurance policy is as important as the cover that it offers, so do factor that in. Keep these features in mind and get yourself the best term insurance plan that suits your needs.