One cannot be sure of anything in life, except death. Life comes up with a sudden twist and changes, which need proper pre-planning to overcome. Before these sudden changes turn your loved ones’ life upside down insure your life for the sake of your family and friends.
‘Term Life Insurance’ is the simplest and the easiest way to ensure that your family will be looked after even when you are not there for them. If by any chance you face a sudden or natural death, the nominee of your policy will be paid with certain amount depending on the policy that will at least help him/her to overcome financial hardship if not emotional.
Points to remember before buying the term insurance-
· The first factor that you need to keep in mind before buying the insurance policy is exactly when to buy it. It is advisable to insure your life as early as possible. As you grow old, the insurance policy becomes expensive. Moreover, the insurance company or an insurer might refuse to take risks if you have any medical condition. Thus, it is must that you buy the policy at a younger age so that you and your family can conquer the financial liabilities in the future.
· The second thing that you need to remember is the duration of the policy. For how many years your policy will be valid. It is better to go for a longer duration if you are young and if you are old then, a short period of time is just fine. The duration of the policy depends on your current age and your desired retirement age. So, subtract your current age from your retirement age and you will get the apt duration of your policy.
· The most important decision before buying policy is the level of the sum insured. This depends on your annual income and age. If you are young, then amount can be 15 times or more your annual income, but as you grow older the amount should be decreased because the risk level and your expenses increase. You should also keep in mind the increasing inflation before deciding the amount of money you want to insure as what is considered a big amount today is next to nil in coming years.
· Now that you have decided the amount, duration and exact age of buying the policy, the next decision that you have to make is from where to buy it. The insurance policy is a contract that depends on mutual trust, therefore; it should be bought from a company or a person you can totally trust. Ask your friends, check the internet or go for re-known insurance company to buy the policy. The price of a policy, rates and benefits that a particular insurer or company provides you is also a very good decision making factor.
· The other factor before buying policy is whether to buy additional protection through riders or not. A basic term insurance policy just covers one’s natural death, but what about sudden severe accident or critical illness. For those unfortunate incidents, these riders provide you with certain insured amount to the policy owner.
· While purchasing the policy, make sure that you disclose all the required information. From your personal details to your family details. If you will try to hide the information then, at the time of claim it might get rejected. The detail that needs to be disclosed includes-
a) Your medical and your family medical condition
b) Mention your addiction if you have any
c) Your personal details- physical appearance, age, gender and annual income
d) Copies of your birth certificate, identity proof etc.
Open your eyes and buy the insurance policy soon to enjoy the benefits it provides you.