For most of us, family is everything. We work hard, day in and out, just to see them hale and hearty. A smile on their face is enough to fill our hunger.
This is the very reason why each one of us should buy a term insurance plan. It is to ensure our loved ones are safe and financially secure if something were to happen to us. However, buying just this plan isn’t enough. We need to ensure the plan we buy is the right one with enough effectiveness and benefits to safeguard our family.
Here is how you buy such a plan.
Go for a long cover
We all expect to live forever. While that is not naturally possible, we can, however, choose a term plan that insurers our life for a long long time. Yes, there are insurance plans which offer a cover till 80 years of age and above. Choose them. The longer the cover, safer is our family’s future in our absence.
Choose Sum Assured with Care
This is the monetary amount your nominees will receive in case of your demise during the policy period. When you decide the sum, take a step back and think. Will it help your nominees sustain their current standard of living without making any compromises? Do not forget to factor in inflation.
Payout Options matter
One the best term insurance benefits are the sum assured pay out options. You can direct the insurance company to pay the death benefit (sum assured) as a lump sum amount or you can direct them to make a fixed monthly payment to your nominees. It is best to discuss this point with your nominees before choosing.
Buy it Early
You can only enjoy the benefits of a life insurance plan if you buy it early in your life. Your nominees enjoy a longer safety net and there are tax-benefits too. The premiums paid for the plan qualify for deductions under Section 80C of the Income Tax Act and the sum assured is tax-free as well.
Pick the Right Riders
These are plans that become effective upon the occurrence of a certain event. For instance, a critical illness rider will pay a specified lump sum amount in case the policy owner is diagnosed with any of the illnesses mentioned in the policy document. This negates the need to own a standalone critical illness plan.
As you read, a term insurance when chosen with care and accentuated with the right additions is a formidable security cover for you and your loved ones.