Term insurance – This an ultimate guide to protect your family. This article educates you with some of the factors you need to consider while buying term plan.
A term insurance provides essential life insurance cover at an affordable premium. This type of policy usually does not return back the premium you paid during the policy tenure. The main aim of term insurance plans is to provide financial security for the family members. Premium paid towards term insurance provide tax benefits under section 80C.
The term plan you choose should be atleast 10 times that of your annual income. For example, a person earning ₹20 lakh annually must have a term policy of about ₹2 Crores for adequate support to his family after his death. You can also buy term insurance from two different companies.However, one insurance is more than sufficient as long as the the company from which you buy has a good claim settlement ratio.
You can buy a term plan online or offline. We from stockmini recommend our readers to buy online as you can find some discounts in premium when compared to offline. Disclose your personal habits such as smoking, drinking etc as it could determine the premium you pay.
One should buy a term insurance when they are young as the premium would be much lesser. Stop paying insurance once you accoumulate enough corpus for your retirement.
TOP Insurance providers
Aviva, HDFC Life, ICICI Prudential Life, Kotak Mahindra and Max Life are offering some of the best term plans. If you have any other term plans and have interesting things to share, please mention it in the comments section.
Do not choose the policy that pays you back the premium after the maturity period. This is just a sales tactics. Don’t fall for it.