Term plan is the most pure form of insurance policy. The simplest way to get life insurance is term insurance. In this, the person taking the insurer pays the premium for a certain amount of time. If the insured dies during a fixed period, then Sum Assured or a lump sum is paid to his family or nominee. After giving a nominal premium every year in the term plan, you are provided cover for some specific years. Typically the term policy is taken for 10 years, 15 years, 20 years, 25 years and 30 years.
Keep these things carefully before buying Term Insurance:
1 Minimum Cover: The need for one person for a minimum cover can be different from the other person. But it is said that a earning member should have at least 10 times his annual income. Also, it is also advisable to increase the cover with an increase in your income or buy additional term insurance.
2 Premium of Term Insurance Plan: Term insurance premium depends on three factors – age, age of coverage and term. For the same age, term and life cover, the premium amount will vary from the insurer to the insurer. Therefore it is advisable to compare online before buying term insurance.
3 How many types are there Term Insurance: With aging the person’s insurance needs also increase. Some insurance companies offer schemes that come with an increase or decrease in the sum insured.
4 Nomination: This term is the most important in insurance. To ensure that the income of the insurance is mentioned in the name of your death, the name of which you have mentioned is met, so you should fill the details of the nominee while buying insurance.