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The uncertain times of COVID-19 have not only sent waves of panic in the entire world but have also acted as a reminder that many of us, most of the times, risk being financially unprepared to deal with a catastrophe. We can however avert unwanted outcomes by buying a term insurance and to use it as a safety net against different unforeseen circumstances. Buying a term insurance plan is also a great and affordable way to be sufficiently covered since this insurance can provide substantial life protection at an economical cost. A term insurance stands to be a basic policy that is limited to pro
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The uncertain times of COVID-19 have not only sent waves of panic in the entire world but have also acted as a reminder that many of us, most of the times, risk being financially unprepared to deal with a catastrophe. We can however avert unwanted outcomes by buying a term insurance and to use it as a safety net against different unforeseen circumstances. Buying a term insurance plan is also a great and affordable way to be sufficiently covered since this insurance can provide substantial life protection at an economical cost. A term insurance stands to be a basic policy that is limited to providing complete protection with no investment or savings element. On the other hand, a whole life insurance plan can come with cash value.
Questions to ask when buying term insurance: • Before you make up your mind to buy term insurance, make sure you ask these questions. Let’s take a look at what these questions are. • What is the tenure of the cover? • It is imperative to ensure that the term insurance plan that you are buying covers the period for which these funds are needed by the dependants or for the time when you are supposed to pay the outstanding for a loan. Ask your term insurance provider what is the length of time for which the term insurance provides coverage so as to avoid paying premiums for insurance you no longer need.
Does the insurance have a provision of renewability? • If you are still not sure about the period of coverage needed, ask your insurance provider if the term insurance has the provision for renewability. This is critical since you can then get the term insurance plan renewed without the need to underwrite it again.
Can the term insurance plan be converted into a whole life insurance plan? • Ask the financial consultant of your insurance provider if your term insurance plan comes with a convertibility feature. This feature comes in handy especially when you want to convert your short-term coverage plan into a permanent plan. • What is the coverage offered? • It is highly important that the plan you opt for covers you against any unforeseen circumstances. Most of the plans cover death, total and permanent disability, and terminal illness.
Are there any optional riders? • Ask your financial consultant what are the kinds of riders that you can add to the term insurance plan you are willing to opt for. There are some term insurance plans that cover only total and permanent disability and death and hence adding riders can provide you with more extensive coverage should it something you’re looking for. • Want to understand how to plan your finances better? Get in touch with your financial consultants today to get more financial tips and know what else is available to get a ensure a sufficiently covered and secured future.