5 Tips you must take care while taking a term plan

Term plan tips

“Wait, wait; don’t sign it yet” I screamed “Have you compared the premium? Will that rider actually goanna benefit you? What is the Tenure?”
The scared couple glanced at each other and nodded “No”
“Huff! You guys literally inspect that tomato with a microscope, and here you are ready to take such big decision without considering other plans and future risks.”

Well don’t worry!http://trucompare.in  just saved you by providing you the list of 5 points that you must take care while choosing your term plan.

    1. Don’t choose term policy as your birthday gift
      Term policy is directly proportional to your age. Thus, Premium increase with age, so don’t make unnecessary delay in choosing a term policy. For example, your premium increases the day you turn 20 from 19. So before the no. of candles increase on your birthday cake. Hurry up! Make the decision.
    2. Take the term early in the life and for longer tenure If you have a baby of 1 year old and you are thinking of delaying in purchasing the term. Think again. You will have to pay higher premium as your child grows older due to the fact that as you grow older, health issues increases. Moreover, make sure you buy this policy for the maximum tenure. So, if you purchase the policy for 15 years and thereafter you plan to increase the tenure, you will have to pay higher premium because of increased age.
    3.  Choose the Sum keeping future requirements in mind. Not taking the term insurance is an unwise decision and being insured even after taking it is a stupidity. Before you calculate the sum that would be required, make sure you keep in mind things like inflation, home loans, education loans, no. of children you are planning or their education or any other such plans you would be taking further in your life. Plan should atleast be 20X of your annual income.
    4. Choose a payout option as per your family needs
      Term Plans also provides you with the different facilities of payout like monthly, lumpsum or a combination. Choose it as per your lifestyle and job stability. So, if you and your wife both are working and earning well, go for a Monthly plan. Now, if you people have taken the loan, then use combination of both lumpsum and monthly. This will ease you up as lumpsum will help you pay the loan and monthly payout can be used.
    5. Choose a Rider wisely
      Riders are extra benefit that you can avail by adding a small sum with your premium. These are the benefits like loss of employment cover, accidental death cover, disability cover, critical illness cover etc. This choice should be in regard with your lifestyle and job risks.

We are usually drawn to buy a term that has lowest premium but that may not be the right choice. Your plan should be according to your requirements.

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