4 Things to Avoid While Buying Term Insurance
Life is full of ups and downs. At times there are moments that shower happiness over you and your family. However, there are also a few moments where the exact opposite can happen. Such distressful moments can be caused due to accidents that can cause injuries or something severe such as loss of life.
In event of life loss of a breadwinner, the dependents are left without any financial source. Only a term insurance plan will provide sufficient financial reimbursement to the dependents of such person.
There are several types of term insurance plans that will provide the required life cover to a person. However, making an appropriate choice can be difficult for most of the people. Many insurance players like Max Life, SBI Life, HDFC Life etc. in the market providing value to your money term plans by giving you multiple options to choose from.
Experts will always recommend the best tips to select a plan. Moreover, they will always recommend buying term plan online. In spite of all the available knowledge and tips, many people still continue ending up with an inappropriate plan. We have consulted such people, understood their situation, and have finally been able to find things that you should avoid while buying term insurance.
1> Avoid Too Much Risk Cover
Selecting the right life cover for a term plan is a difficult task. While some people may under-insure them owing to the amount of premium, many have a habit to over-insure. Whenever you buy a term plan, you should always select a cover that is ten times your total annual income.
2> Higher Starting Age
Starting age actually is a deciding parameter for the amount of premium calculated. The earlier you start, the lower the premium you will have to pay for your policies.
3> Buying two different policies
Most experts recommend buying two different policies for getting better claims. However, if you get to the math of it, buying a single policy will large sum assured will surely save you a few bucks on insurance premium.
4> Falling for the words of Agent
Many people have the habit of buying a policy after following the recommendations of an insurance agent. By doing this, you will void yourself from fetching a good deal.