Getting a term life cover is a long-term decision. You can start young with these policies, and they can offer a life cover up to your retirement years. This decision is best taken after having carefully considered your options as well as your needs. Many tend to believe that term plans are uniform in design across the board. However, there is a range of term plan sub-types and features, available in the form of life insurance.
With an array of options at their fingertips, customers may be spoiled for choice. If you are not sure of how to choose the best term insurance policy, you may start by comparing policies. With most plans available online, and easy-to-use online term plan calculators, this can be achieved in minutes. Furthermore, you can compare multiple plans by their features that make a policy worthwhile.
Here is a look at four factors to consider when choosing term life insurance.
- Having an adequate life cover
The life cover on your term policy, or your sum assured, should be an amount that is equivalent to the value of the life of the person insured. When choosing a plan, ensure that your sum assured is sufficient to cover the needs of the people you leave behind. You can make this choice easier by estimating your sum assured and premium with the aid of a term insurance calculator.
- Considering the pricing of the plans
Depending on the type of term policy sub-type, features, and the premium frequency you choose, your plan pricing may vary. Pricing usually refers to the premium you pay for the plan. This covers your plan purchase, maintenance, and death benefit. The frequency can be monthly, annual, quarterly, or even a single amount paid at the beginning. Ensure that what you pay for the plan is affordable to you and gets you the features you want.
- Opting for add-ons
Term life insurance plans are known to be simple life insurance products. If that idea seems to leave you wanting more, know that there are several riders and benefits that can be added to a policy. These add-ons could enhance your term life insurance policy as per your needs. While the choices may vary from one insurer to another, they may include premium waiver, accidental death, permanent disability, terminal illness, and other such add-ons.
- Determining your seller
Today, a term policy can be purchased easily online as well as offline. While this may seem overwhelming, it is an opportunity to compare the policies that various insurers have to offer. You can visit the insurance providers’ websites or third-party sites to compare available plans. Choose as per your requirements, instead of choosing a plan simply because it seems popular, inexpensive, or easily available. Be sure to weigh your options carefully.
The primary reason behind choosing a term life insurance policy is to ensure that your family remains financially independent in the event of your passing. Keeping these factors in mind while choosing a plan may help you buy a plan that is right for you and one that will suffice for its term duration.
