Term insurance is one of the most basic and cheapest forms of financial protection. But despite that, only 25% of the Indian population has the life insurance cover, revealed the Insurance Regulatory and Development Authority of India (IRDAI). Experts believe that these low insurance penetration could be due to the complexity of the instrument or preference to avoid the topic or possibility of your demise.
However, it is essential to understand that life insurance products do not apply a monetary value to your life! It is only meant to help you compensate for the financial consequences that will accompany your unfortunate passing. Keeping an open mind about life’s uncertainties will allow you to protect your loved ones from the shock of losing you and also help them get by once that shock subsides and the reality sets in.
The life insurance cover that you buy in your life can be used to clear the outstanding debts, pay for your child’s education, support your dependent parents, and compensate for the loss of income.
So if you think that as a millennial, it is too soon to worry about these things? Think again! You need to use the term insurance premium calculator right now to see how much you can afford to pay for a life cover and start planning your investments today.
Are you ready to go down that road? If yes, follow the tips to choose the best term plan cleverly!
1. Compare Insurance Plans Online
With so many insurance providers these days, it can be challenging to choose the right service provider for a term plan. This is why you need to use the online term insurance premium calculator to calculate premiums. Various insurance products offered by reputed insurers such as Max Life Insurance, allow you to compare their features before purchasing a plan that gives you maximum benefits.
Comparing insurance policies online is the best way to get an idea about the ongoing market trends and to study the benefits provided by various providers thoroughly. This research will help you make an informed investment decision when you are buying life insurance plans.
2. Look for Plans WithMaximal Coverage at Lowest Cost
When choosing the sum assured, you need to keep in mind that the amount should not only take inflation into account but also your existing liabilities and foreseeable expenses. The best life insurance plans are the ones that provide maximum coverage at the lowest premium. To determine the coverage amount, the industry-standard suggests that you should take at least 15-20 times your current annual income and choose the policy term as per your number of working years.
You can also use the term insurance premium calculator to check if the premium is affordable for you. You will be able to pay your premiums only if they are cost-effective consistently. Therefore, it is essential to make use of the premium calculator before committing yourself to long-term investment, such as term insurance.
3. Understand the Rider Options
Term insurance plans are a popular financial instrument because it provides primary coverage at a low premium. However, you can customize your policy by adding rider benefits to your life insurance plans. Be sure to check all the rider options available with your term insurance. Don’t forget to use the term insurance premium calculatorto check the final premium amount.
You must add only those riders that are relevant to your lifestyle and will make your policy more suitable to your individual needs. For instance, critical illness cover will give your life insurance policy a certain edge by protecting you against the financial burden of being diagnosed with specific life-threatening diseases. Similarly, the accidental cover will pay for all the treatment costs if you meet with an accident. As a policyholder, you can review the rider options and attach the suitable ones to your policy.
4. Use the Premium Calculator
When you are choosing the life insurance plans, it is advisable to use the online term insurance premium calculator to determine the right quote. Most insurance companies offer term insurance calculators on their websites to help you analyze the plans as per the quotes.
Term insurance is one of the essential investments in your financial portfolio. It will not only provide your family with financial aid in your absence but also help you fund your future goals.