Buy a term plan and secure your family
Now, there are various other objects of the policy that should be kept in mind. For instance, the policy tenure must not end when it needed the most. Moreover, it is important to be careful about the mistakes that can make your policy lapse or your insurance claim rejected.
Listed below are the issues that should be kept in mind while you buy term insurance.
Term insurance is a high-value cover, hence, the insurance providers generally ask the policy buyers for extensive medical check-ups. However, in some of the cases, the company may not emphasize too much on the medical test. They will just ask you to submit a declaration of good health.
This may go against you. In the case of your early demise, the insurance company may show that you have lied regarding your medical health and that you were already suffering from the disease while buying the insurance.
If you undergo the medical examination, the onus will shift to the provider and the doctor who does your examination. Hence, they won’t be able to dispute your nominee’s insurance claim. So, make sure you purchase the policy only if your company performs a complete medical check-up. Moreover, after certain years, the insurer does not have the option of denying the claim or challenging the information disclosed.
One of the purposes of term insurance is replacing the policyholder’s income in the case of death. Hence, the policy must cover the insured until the time he was supposed to be working. This may vary from 55 to 65 years, and even longer in some cases.
Generally, it is recommended for a person to take a cover until the age of 60 to 65 years. Purchasing plans for a short duration does not make any sense as the policy will end by the time you are in your 50s. The company may deny to give you a cover if you do not maintain good health.
Any insurance contract is dependent upon the principle of good faith. The contract becomes void and null in the case your insurance provider finds out that you have provided false information in your form. The premiums for teetotalers and non-smokers can be lower; however, there is no need to lie about your smoking or drinking habits in the form.
Concealing the lifestyle habits or your medical conditions may cause a rejection of the claim later in life. So, if you drink or smoke, mention it in the form. If there is hereditary disease running in your family, inform the insurer about that too. It will increase your premiums, but at least your claims will not get jeopardized.
A term plan is the most affordable form of life insurance as it does not include any investment component. For little amount, you can buy high covers. However, the premium amount alone must not be the deciding factor for you.
You must buy term insurance from the company that has a clean reputation in the settlement of claims and a good record for customer orientation.
After you buy a plan, make sure it does not get lapsed when you skip the payment of renewal premium. One way of making sure you do not miss your premium is by giving standing instructions to your credit card provider for making payment of the premium at the time it is due every year. This way, your premium gets paid on time and you will just have to settle the bill of your credit card.
A lot of providers give the buyers of the online term policies, the option of making payment of the premium on an annual, half-yearly, quarterly, or monthly basis. The option of the monthly payment is the costliest; however, it involves the lowest outflow and hence is pretty attractive for the buyers. The option of annual premium is the best unless there is a constraint of cash flow. Since the payment of premium is to be done only one time in a year, the chances of missing the premium are quite low.
In a Nutshell!
Looking for the best term insurance to buy involves a lot of things. For accommodating the needs of smart customers, there has been an evolution of term insurance from plain vanilla insurance. Various useful add-ons and riders have been added to the plans to make them more attractive for the customers.