Max Life-Term Insurance

Max Life-Term Insurance

Max Life Term Insurance Plans And Review

Term insurance, a type of life insurance, provides coverage for a certain period of time or years. If the insured dies over the policy tenure a death benefit (or sum assured) is paid out. No payout is made if the insured survives the tenure.

The purpose of taking life insurance is to provide life cover to the policyholder and financial security to his family.

There are two ways the individual can take life insurance:

  1. By opting for a pure life cover, also known as term insurance.
  2. By taking life cover with a savings component built-in, also called endowment insurance.

A Term Insurance Plan is the most comprehensive form of financial protection. It will help your family meet their financial needs from household expenses to rentals in your absence. When you consider buying a term plan, you have to make an educated choice about the life cover you select. There are some important things you need to keep in mind when deciding on the term plan and life cover you opt for. The cover should help your family maintain their lifestyle, inflation should be kept in an account and lastly, it should take care of your existing liabilities preventing the worries of EMI repayments.

What is Term Insurance?

Term insurance is the best form of insurance as it gives a very high coverage at a low price. The premium of a term insurance plan is a fraction of what you have to pay for buying an endowment, money back or unit-linked insurance plan (ULIP) with the same coverage. This is because there is no investment component and entire premium goes towards covering the risk Buying a term insurance plan for an individual, especially for a breadwinner of a family, is an essential thing as it makes the lives of their dependents financially secure when he is not there. Hence, it becomes imperative to choose the best term insurance plan as it can make a difference for your dependents.

You can easily compare all the available policies in the market from all top insurance companies in few seconds to choose the best policy as per your needs from here- Term Insurance

Here are some pointers to remember while buying a term insurance plan:

Adequate Cover

Just buying a term insurance plan will not serve the purpose, having the right amount of coverage is the most crucial thing while purchasing a term insurance plan. This is because term insurance is meant to replace one’s income after he dies. To arrive at the right amount of coverage that one require one needs to add basic expenses that his family will incur, major expenses such as education and marriage of his children and liabilities such as home loan, car loan etc. If life cover is inadequate it defeats the whole purpose of insurance. Hence, look out for a term insurance plan that offers the amount of coverage that you require.

Tenure

Along with coverage amount, it is also important term insurance plan should offer cover till you need it. Basically, a term insurance policy should cover a person until the age he intends to work. Hence, don’t take a short-term cover of 15-20 years that ends when you are in your 40s. Choose a term insurance plan that offers cover till you require it.

Enhance cover

The amount that you may think sufficient might not be enough after a few years. Therefore, some companies offer plans where the cover increases by 5-10 % every year or indexed to inflation. As your sum insured increase automatically in coming years, it will take care of the increase in your income as well as inflation. Some insurance companies also offer a plan that allows policyholders to increase the sum insured in certain stages of their life.

Claim settlement ratio

While buying a term insurance plan is very important to check claim settlement of insurance companies. This is important because your nominees will have to contact the insurance company to get the claim. Hence, choose an insurance company that has a good claim settlement ratio and claim procedure is hassle-free.

Exclusions

Before purchasing any insurance plan it is very important to go through what are the exclusions of the policy.

Charges

Go for term insurance plans that have lowest charges as this will lead to lower premiums for the same cover.

components and entire premium goes towards covering the risk

Buying a term insurance plan for an individual, especially for a breadwinner of a family, is an essential thing as it makes the lives of their dependents financially secure when he is not there. Hence, it becomes imperative to choose the best term insurance plan as it can make a difference for your dependents.

You can easily compare all the available policies in a market from all top insurance companies in few seconds to choose the best policy as per your needs from here- Term Insurance

Here are some pointers to remember while buying a term insurance plan:

Adequate Cover

Just buying a term insurance plan will not serve the purpose, having the right amount of coverage is the most crucial thing while purchasing a term insurance plan. This is because term insurance is meant to replace one’s income after he dies. To arrive at the right amount of coverage that one require one needs to add basic expenses that his family will incur, major expenses such as education and marriage of his children and liabilities such as home loan, car loan etc. If life cover is inadequate it defeats the whole purpose of insurance. Hence, look out for a term insurance plan that offers the amount of coverage that you require.

Tenure

Along with coverage amount, it is also important term insurance plan should offer cover till you need it. Basically, a term insurance policy should cover a person until the age he intends to work. Hence, don’t take a short-term cover of 15-20 years that ends when you are in your 40s. Choose a term insurance plan that offers cover till you require it.

Enhance cover

The amount that you may think sufficient might not be enough after a few years. Therefore, some companies offer plans where the cover increases by 5-10 % every year or indexed to inflation. As your sum insured increase automatically in coming years, it will take care of the increase in your income as well as inflation. Some insurance companies also offer a plan that allows policyholders to increase the sum insured in certain stages of their life.

Claim settlement ratio

While buying a term insurance plan is very important to check claim settlement of insurance companies. This is important because your nominees will have to contact the insurance company to get the claim. Hence, choose an insurance company that has a good claim settlement ratio and claim procedure is hassle-free.

Exclusions

Before purchasing any insurance plan it is very important to go through what are the exclusions of the policy.

Charges

Go for term insurance plans that have lowest charges as this will lead to lower premiums for the same cover.

Add-on covers

You can make your term insurance plan more comprehensive with add-on covers at minimal cost. An add-on cover or rider offers benefits over and above the basic policy. You can attach add-on covers to your term insurance plan. Some of the popular riders are critical illness cover, waiver of premium etc.

Convenience

The Internet has made buying term insurance plans very less time-consuming and convenient. And online term insurance plans are also a cheaper option as there is no intermediary and cost is passed on to policyholders.

What documents should I have to buy term insurance plan online?

List of documents which are required while buying a Term Insurance Plan are:

  • Age Proof: Pan Card, Voter’s ID, Passport, Driving License, School/ College Certificate, Birth Certificate.
  • Address Proof: Utility Bill, Passport, Voter’s ID, Telephone bill, Ration Card, Electricity Bill, Bank A/C Statement and Letter from Recognized Public Authority.
  • Photo Identity proof: Driving License, Voter’s ID Card, Passport, Pan Card, Letter from Recognised Public Authority or Public Servant with Photograph verifying the identity and residence, Aadhar Card.
  • Recent passport size photograph
  • Income Proof: Salary Slip, Form 16, ITR/ Assessment Order/ Employers Certificate.
  • Medical Reports – In case required from the insurance companies end.

While purchasing a term insurance policy online, just you need to upload the attested copy of the above documents.

Good that you have decided to buy term life insurance. First, check if 1.5 Cr life cover is sufficient to meet your liabilities and family future expenses.

Maximum insurance cover you can avail depends on your annual salary.

The insurance premium will be decided based on age, gender, a period of cover and smoker or nonsmoker status. The insurance premium will differ from one insurance company to another. You calculate insurance premium by visiting www.Policyplanner.in website.


2 Comments

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