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Contemplate These Crucial Facets Before Buying Term Insurance

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By Author: Prince Gupta
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If you are planning to Best Term Insurance Plan, it is quintessential to understand some aspects to avoid dealing with jeopardy. Let’s quickly dive into those aspects to help you make an informed decision.

The earlier you buy a term insurance plan, the better it will be for you:
There is indeed no specified minimum or maximum age for term insurance. But the golden rule is 'The earlier you purchase the policy the better it will be for the insured individual.'

When it comes to buying a relevant term insurance plan, act on it as soon as possible. As time moves ahead, your premium amount will also rise depending on your age, and if you are diagnosed with any illness or disease, it will be more formidable to get the desired policy. So once you reach a decision that you require a certain amount of life cover, accomplish this task as soon as possible.

Buy the term insurance policy only till your retirement age:
To what age should you purchase a term plan? This question tends to bother a lot of prospective policy seekers.

It is not advised to buy it for the longest term possible because ...
... you only need a life insurance policy till your retirement and not after that. This is because not many family members will financially rely on you by the time you reach your retirement age.

When we are young, we have to manage more financial responsibilities as compared to old age, and therefore it is sensible to take a big cover. But as we age, our assets will increase, and at the same time, we will be getting closer to our retirement, at which point we no longer remain sole breadwinners in our households.

Don’t get tricked by “per day premium” advertising tactic:
These days, you can easily find numerous insurance companies that have begun to promote their term insurance plans by articulating the cost per day basis. Nevertheless, it's possible these figures might work well only for a specific age group and tenure of the policy.

Don’t purchase single premium policies
Occasionally, you need to decide between single premiums vs. regular premiums while buying a life insurance policy. Many people think just because they can afford to pay a one-time premium, it turns into a sensible choice, but it’s not right.

It does not always make much sense to pay a one-time premium (single premium) while purchasing a term plan. The best option for most people is the yearly premium. So if your agent is persuading you to make a one-time payment, try to steer away.

Take an increase in premiums on a positive note
When you buy a term insurance plan (or even health insurance), it is possible your premiums can rise after your medical check-up, and you may be requested to pay an additional premium. Don't think of it as an additional expense. Detection of health issues is mainly responsible for amplifying your premium, and it’s not wrong for your insurer to request you to pay this raised premium.

Most buyers are hypercritical of the premium increase and choose not to proceed or defer the decision associated with the plan.

Nevertheless you should make an effort to understand that the premiums increase is a realistic thing to happen if you fall in the high-risk category (such as a smoker, alcoholic or if some past illness). It’s actually a logical thing that the company is reviewing the attributes and still presenting you the plan, though at a little high premium which is quite reasonable from this perspective.

Instead of postponing the decision, the best thing is to go ahead and buy the Term Insurance
policy.
Assess your requirements before choosing term insurance riders
“Riders” make incredible add on with a term insurance plan, but choose the ones that you find relevant for your needs. Make sure to not add them haphazardly just because of their availability and gives you a sense of added security. Given below are myriad types of term plan riders

Accidental Death Rider
Permanent & Partial Disability
Critical Illness
Waiver of Premium
Income Benefit Rider

Inform your insurer if you are a smoker/alcoholic or work at a perilous job site:
Don't hide the fact that you are a smoker or drink alcohol. It is not advisable to not inform your insurer regarding such aspects. And if your work involves you working at a dangerous site, then make sure to inform your insurance provider about this.

The estimation of your premium hugely depends on this paramount information and if you choose not to be vocal about these facts, perhaps you end up in violating the agreement with the corporation and the chances of claim rejection increases.

Never hide your family health history
Whether you buy a Best Term Insurance plan online or offline, your family health history plays an important role in the whole process. If your parents or siblings have some condition, then also you are supposed to share this information with your insurance provider. Ensure not conceal it because even that information influences your premium.

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