Term Insurance Plan Premium Hike this year select best plan, Term insurance premium may increase, choose the best plan before buying, keep in mind the needs and inflation rate
Under the pressure of the risk of Kovid-19 epidemic and increasing demand, insurance companies are continuously increasing the premium of term insurance. Prices are expected to increase further. In such a situation, do not rush to buy term insurance for fear of increasing the premium. Take term insurance keeping in mind your financial needs and inflation rate irrespective of the rising prices.
Adil Shetty, CEO, Bank Bazaar, says that the importance of term insurance increases when the family is suddenly burdened with debt and other liabilities after the untimely death of the insured. To avoid such financial burden, while buying a term insurance policy, keep in mind your liabilities, expenses on children’s education, source of income, income of the wife and health needs of the family. Term insurance should always be taken according to the needs, in which the cover is 10-20 times your annual income.
Keep increasing the cover according to the needs,
he says that if you already have a term insurance policy, then keep increasing its cover every year according to the needs of the family. Many add-ons are also available in it. For example, accidental death benefit or monthly income. Here your entire focus should be on the basic cover and buy add-ons only when needed. Take any add-on considering the current risk in your life.
Compare products, definitely check settlement ratio
Insurance experts say that term insurance plans of insurance companies differ. In such a situation, buy a better term insurance only after comparing the products of different companies based on your needs. While comparing these, be sure to check the parameters of various aspects of the policy like insurance coverage, age of maturity and claim settlement record. Also check the settlement ratio of the companies. Insurance Regulator Irda (IRDAI) has recently released the data of settlement ratio of insurance companies for 2020-21.
Do not make these mistakes even by forgetting
– Incomplete information: Disclose your complete medical history while buying term insurance. Failure to do so may result in problems during the claim and your claim may be rejected.
– Short Term Plan: Do not make the mistake of buying a short term plan. If at the age of 30, if you choose a plan of 10 years, then at the age of 40, you will have to buy the next plan for 10 years, which will be expensive. Instead, buy a plan for 20 years at the age of 30.
– buy not possible policies: term insurance purchase as soon as possible, will pay a lower premium. As you get older, you may have to pay higher premiums.
Don’t just make premium the norm.
Insurance and investment advisor Sweety Manoj Jain says that term insurance has become a part of basic needs in the current environment. This can prove to be very helpful in meeting the financial needs of the family after you. Therefore, while choosing a term insurance policy, do not just make the premium the criterion. Affordable policies may not cover key riders, which may cost you and your family.
Compare products, definitely check settlement ratio
Insurance experts say that term insurance plans of insurance companies differ. In such a situation, buy a better term insurance only after comparing the products of different companies based on your needs. While comparing these, be sure to check the parameters of various aspects of the policy like insurance coverage, age of maturity and claim settlement record. Also check the settlement ratio of the companies. Insurance Regulator Irda (IRDAI) has recently released the data of settlement ratio of insurance companies for 2020-21.
Do not make these mistakes even by forgetting
Incomplete information: Disclose your complete medical history while buying term insurance. Failure to do so may result in problems during the claim and your claim may be rejected.
Short Term Plan: Do not make the mistake of buying a short term plan. If at the age of 30, if you choose a plan of 10 years, then at the age of 40, you will have to buy the next plan for 10 years, which will be expensive. Instead, buy a plan for 20 years at the age of 30.
buy not possible policies: term insurance purchase as soon as possible, will pay a lower premium. As you get older, you may have to pay higher premiums.
Don’t just make premium the norm.
Insurance and investment advisor Sweety Manoj Jain says that term insurance has become a part of basic needs in the current environment. This can prove to be very helpful in meeting the financial needs of the family after you. Therefore, while choosing a term insurance policy, do not just make the premium the criterion. Affordable policies may not cover key riders, which may cost you and your family.
