You can’t be certain of anything in this life except death. There are always unexpected twists and turns in life, which require proper planning. You can protect your family and friends from sudden life-altering events before they turn your loved ones’ lives upside down.
The simplest and easiest way to make sure your family is taken care of even when you’re not there is ‘Term Insurance. The policy will pay a certain amount to the nominee if you are unfortunate enough to die suddenly or naturally. This amount will help at least alleviate financial hardship, if not extreme emotional.
Things to consider before purchasing term insurance-
* When you purchase an insurance policy, the first thing to remember is when. It is best to insure your entire life as soon as possible. Insurance policies become more expensive as you age. If you have a medical condition, an insurance company or insurer may refuse to take on your risks. It is important that you purchase the policy as soon as you are able to afford it.
* The policy’s duration is another important thing to keep in mind. How long your policy will remain valid. If you’re young, it is best to choose a policy that will last for longer than you need. However, if you’re old enough, you can opt for a shorter term. The policy’s duration will depend on your age and retirement age. Add your current age to your retirement age, and you’ll get the right duration for your policy.
* Before purchasing a policy, the most important decision is to determine the amount of coverage. Your annual income and your age will determine the amount you are allowed to insure. The amount you can insure if you’re young is 15 times your annual income. However, as you get older, the amount you should insure will decrease due to the increase in risk and the increased expenses. Also, keep in mind inflation when deciding how much money to insure. What is considered large today may be small in the future.
Once you’ve decided on the amount, duration, and age of the policy, you can now decide where to purchase it. Insurance policies are contracts that depend on mutual trust. You should only buy them from companies or people you trust. You can ask your friends and family to recommend a reputable insurance company. It is important to consider the cost of a policy, as well as the rates and benefits offered by a company or insurer.
* You must also decide whether you want to add riders to your policy. Basic term insurance policies only cover natural death. But what about sudden serious accident or critical illness? These riders offer a certain amount of coverage to policy owners for those unfortunate events.
* When purchasing a policy, ensure that you provide all required information. You must disclose all information, from your personal details to the details of your family. You might be rejected if you try to conceal the information at the time of the claim. You must disclose the following details:
Your medical and family medical condition
b Mention your addiction, if you have any
c Your personal information – your physical appearance, gender, and annual income
d. Copies of your identity proof, birth certificate etc.
Take the time to look at the benefits of insurance and purchase it as soon as possible.
