Choose the right term insurance plan for yourself

1. Choose the right term insurance plan for yourself None of us ever want to anticipate death but we need to have a back-up in case the unexpected happens. While we are always looking out for our family in different ways, buying a term insurance planwill help you secure your family’s financial future, in case of your sudden demise. What is Term Insurance? Term insurance is the simplest form of insurance that provides the assured sum as death benefits to your family against the minimal premium cost. Here’s what you should consider before buying a term life insurance: 1.Buy policies online: Buying a term plan online or offline makes a huge difference. Online policies have significant benefits in terms of cost and simplicity. You can compare policies through online comparison portals for its features and reviews. As you can buy a policy directly from the insurance company’s website, there are no intermediaries or agents are involved. Thus you get the same policy and lower rates online. 2.Be specific about the term: Tenure is a critical factor in deciding the coverage amount. The term insurance plan must cover the tenure until the age a person wants to work. If you are finding it difficult to decide on the cover amount consider your current age, policy tenure, and your future financial goals. Once you decide on your plan tenure, using the term plan calculator will help you decide on the coverage amount. 3.Take Inflation into account: Inflation is another crucial factor that most people forget to consider while buying the term insurance plan. The amount of coverage that works today may not help you

2. survive after 10 years, due to the increasing inflation rate. Also, considering the same inflation rate throughout would be a mistake. Some term insurance plans offer a rise in amount of coverage by 5-10% every year. This periodic increase in the assured sum will help you build enough coverage amount at the end of the plan tenure to meet your family’s day-to-day needs as well as help them continue living a comfortable lifestyle even after your demise. When it comes to term life insurance, one should carefully asses the factors age, current income, health issues, and debts and liabilities along with the financial goals and benefits you would want for your family.