Term Insurance: After the Korana crisis, the number of people buying term insurance plans has increased. The biggest reason for this is that in the absence of the insured, it provides great coverage to the family at a low premium. The decision to take term insurance should not be done in haste but after a lot of thought. We should assess whether we need a term policy or not. Maturity benefit is not available in this insurance, although it gives financial protection to the family after the death of the policy holder.
what is term policy,
First of all it is important to understand what is term policy. Term insurance provides coverage at a fixed payout rate for a limited period of time. If the policy holder dies during the term of the policy, the death benefit amount is paid to the nominee. It is very important to understand that term insurance is not an investment. After the death of the policy holder, his family gets its benefit.
Now we tell you what things should be kept in mind while taking a term policy.
You should take into account the source of income, current debts and liabilities, dependent family members, children’s higher education, their marriage, retirement, etc., while computing the sum assured. The term insurance cover should be at least 10 times your annual income.
Insurance company’s claim settlement ratio
While taking the policy, definitely check the claim settlement ratio of the insurance company. Buy insurance from the company which has the best claim settlement ratio. In fact, the claim settlement ratio shows that what percentage of the total insurance claim was settled by an insurance company in the last year.
Give all the necessary information to the insurance company
The insurance company should always give correct information. Insurance companies say that due to wrong information given by the policy holders, there is a problem in getting the claim settlement. Especially the medical history must be disclosed.
Rider or add-on benefits
Buy riders or add-on benefits only when needed. Policyrider or Add-on Benefits means any attachment to any Insurance Policy. However, riders increase the premium cost, so include riders only when absolutely necessary.
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