If you are new to buying insurance, it is safe to say that trusting the insurance company and choosing the right insurance plan can be a bit confusing and risky. To choose the most affordable and optimal term plan, you need to have products that fit your needs in your investment portfolio and work towards achieving your financial goals and at the same time ensure that your family is financially secured in the case of your untimely death.
Every person should have a term insurance policy. However, it is a win-win situation if you get the right kind of term insurance plan at a low price. When buying a term plan in India, it is possible that the plan you choose may be ‘cheap’, but not what you want. Therefore, when deciding on a policy, it is important to choose an affordable plan without compromising on the cover you need.
Nowadays, there are so many insurance products to choose from, it can be very difficult to choose the right plan that best suits your needs. Here is how you can get the right coverage at an affordable price:
- Ensure that a term plan is the right option for you.
There are different types of life insurance policies available in the market, but the type of coverage you choose can have a huge impact. This impact can be on you and on the price you would have to pay for insurance coverage. You can know the premium to be paid using a term plan calculator. Whole life insurance policy coverage is the most expensive cover because it definitely pays off at some point. Conversely, if you take out term insurance, you will only be covered for the term of the policy. Insurance companies determine the policy premium rate, taking into account the losses payable during the policy term. Hence, if you want to save money on insurance coverage and are fine with having a limited term of coverage, you should go for term insurance.
- Buy online
Buying a term insurance plan in India is more pocket friendly than buying it offline. Insurance companies spend huge sums of money and time monitoring and managing insurance sales offline. When you buy a policy online, it helps the insurance companies save a lot of money, which is delivered to you in the form of a lower term insurance premium.
In addition, buying a policy online is not only cheaper but also saves a lot of time. Through the online process, you can compare different policy quotes and choose the best plan according to your need and suitability.
- Understand the product and your goal
It is important to do proper research before choosing a term plan. It is important to understand the benefits and features of the plan so that you can know exactly what you are investing in. You can compare plans online and choose the most suitable plan according to your need. You can get the maximum benefit by analysing the purpose of purchasing an insurance plan. Since the term of the term plan is very long, it is important to know what your term plan offers and whether it is sufficient to take care of the financial obligations in the long run.
- Premium payment option
Term plans generally offer multiple premium payment options. You can choose the single premium payment, regular premium payment, or limited premium payment option, as per your convenience. Under a single premium payment term insurance, the premium is paid in full for the entire plan. In a limited premium payment, you can pay the premium in certain years, i.e. in 5, 7 or 10 years. Under the normal premium payment, the insured person can pay the premiums for the entire term of the policy. Based on your budget and financial planning, you can decide to go for any of these payment plans.