Examine your financial requirements
The first thing to remember is to keep in mind your family's future financial demands, such as money for children's higher education, loan repayment, regular bills, etc.
Select the appropriate level of protection
In case of your demise, the sum you choose will be received by your family in the future. As a result, it's critical to evaluate your family's current and future financial demands when selecting coverage and to compare term policies. Your annual income, lifestyle, duties, and liabilities determine the quantity of coverage you receive.
Examine the policy's terms
You must compare term policies and choose one corresponding to the age range you want term insurance coverage.
Look into add-on riders.
Examine the various possibilities for riders to include in a e-term policy and select the most appropriate rider benefit for your needs. This is quite an important factor that must be looked at when comparing term life insurance policies.
Select a payment method.
In most term insurance plans, there are three premium payment choices. These are the following :
- Make monthly, quarterly, half-yearly, or yearly payments with the regular payment option. Most people recommend the premium payment option.
- Limited payment option : Pay the premium over a set length of time, such as 5 or 10 years, throughout the entire insurance duration.
- Options for a single payment : Make a single, total payment for the plan's entire premium amount.
Choose a reputable term insurance provider
You must contrast and comparing term policies and firms before purchasing a term plan from one that has a solid financial history and market reputation. Choose a firm that has a high claim settlement ratio and a simple claim process.
Choose a method of payment.
The payment option you choose when buying a policy determines how the death benefit is distributed to your nominee, and there are four kinds of death benefit payout options :
The lump sum payment will be made to the claimant's family. In other words, the entire money will be paid in one lump sum.
In this payout option, the claimant's family will be paid in monthly instalments the whole amount guaranteed. For example, for an amount assured of Rs. 1.2 crores, Rs. 1 lakh will be paid every month for the next ten years.
Lump-sum + Monthly Income
After the insured's death, the claimant's family will get 50% to 70% of the promised amount, with the remainder paid in monthly payments.
Increasing Monthly Income
The claimant's family will receive the whole sum insured in monthly instalments that will increase with time. The instalments grow by 10%-20% yearly to assist the dependents in combating inflation. For example, if the policyholder's family receives Rs.1,00,000 per month and the rising percentage is 10%, the family will receive Rs.1,10,000 per month the next year.
Get the best term insurance plan
Now you know all the factors that need to be looked for when comparing term policies. One of the best insurance providers you can check out is Bharti AXA Life Insurance since it is well-reputed and trustworthy.
If you have been comparing term policies for a while, then you know that there are a lot of options out there. You must find a plan that is best suited to your needs, and Bharti AXA Life Insurance would help you do so with experienced professionals to guide you through every step.
For more information, get in touch with us today!