Five Tips to Choose the Best Term Plan
Life is a journey which starts when you take the first breath. It is a journey filled with joys and sorrow, with happiness and memories, with a lot of events, episodes, moments and people that make it worth living.
Despite all the pleasures, privileges, and people in life, one unfortunate event such as accident can cause a havoc. To overcome the financial impact of such catastrophic event, it is recommended to buy a life insurance plan. A term plan is the most basic of all life insurance plans.
To make the selection simple for you, we have shortlisted these five tips to pick best term plans. They are as follows:
1> Know Your Cover:
The most basic thing while purchasing a term plan is knowing the amount of cover you plan to avail. Ideally, this cover should be 10 times the total annual income of the insured person. Calculate the cover depending on the lifestyle needs and annual income.
2> Seek Appropriate Advice:
Availing the appropriate advice is a crucial factor in choosing the right insurance policy. For this purpose, it is essential to understand your financial goals, responsibilities, and other liabilities, and accordingly approach an insurance advisor to help you choose an appropriate plan.
3> Know your Life Cover:
You may be the bread winner for your family. In your absence, the financial reimbursement offered by the term plan should help your family carry out the regular tasks for a particular time. So, it is important to know your life cover.
4> Compare the different policies:
Plans offered by different insurers are different in terms of covers, clauses, and premium. Thus, to avail the best policy, it is essential to compare different plans online.
5> Understand why you need it:
Term plans are not investments, but they are a promise to offer financial reimbursement to your loved ones in your absence. Understand this basic functioning of a life plan, and accordingly choose an appropriate one.