People who are older than us often advise us to begin planning for the future. But just like most of the young people around us, we delay the planning and saving process thinking there is enough time to do it all later. However, unfortunate circumstances like death and accident often come unannounced and are enough to sweep us off our feet and suddenly our family will find themselves amidst a crisis.
If you are looking for a simple and uncomplicated method to avoid the financial crisis and protect your loved ones in the future, a term insurance plan may be ideal for you. Also, if you want to earn money and protect your family’s future simultaneously, you should look into ULIP insurance. But the real challenge is buying a term insurance plan that suits all your needs. Here are a few tips that will help you buy a good term insurance plan.
- Understand your needs
Before purchasing a term insurance policy, it is important to take a few factors into consideration. They include, how many people exist in your family? How many of them are completely dependent on you for financial support? What is their lifestyle like, and what are their future aspirations? All these factors are crucial to determine the coverage and term of your policy. Analyze before you purchase.
- The cost of the premiums
As far as life insurance plans are concerned, term insurance is one of the cheapest form of insurances and they offer pure life cover. The premium of a policy varies depending on the coverage and the insurance company you choose. Pick a term insurance plan or a ULIP insurance by ensuring that you can afford to pay the premiums on time.
- Claim settlement ratio
The claim settlement ratio or CSR is the ratio of settled claims against the total claims filed in a particular time period. The higher the ratio, the better the insurer. Be it a term insurance policy or ULIP insurance plan, it is important to select an insurance company that you can verify and trust.
- Policy riders
Apart from death, there are various other reasons that may destabilize your life, like accidents, medical diagnosis, and so on. A rider is like an add-on benefit that will protect you and your family under these unforeseen circumstances.
Now that you know what to do to buy an ideal term insurance policy, waste no time and start looking for one at the earliest.
Raj Kumar is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance clap.