Things to look out for when buying term insurance

1. Things to look out for when buying term insurance A ​term life insurance policy​ is an essential requirement in your financial portfolio. The policy protects the financial loss suffered by the family in case of your unfortunate demise. A term insurance plan covers the risk of premature death and pays the sum assured if the insured dies during the policy tenure. Thus, if you invest in a term plan, you can create financial security for your family since they would be financially taken care of in your absence. A term insurance plan is important and so all life insurance providers offer term plans for their customers. When you go looking for the best term life insurance policy, you can find multiple policies each of which promises something better than the other. To choose the best term life insurance plan, here are some factors which you should consider – 1. The sum assured should be sufficient Term plans have very low premiums since they cover only the risk of death during the policy tenure. Such low premiums allow you to opt for a high sum assured which would adequately cover your family’s financial needs. So, when buying term insurance, opt for an optimal sum assured. If affordability is an issue, invest in a smaller sum assured and later on buy another plan to enhance the coverage. 2. Check the coverage benefits While term plans offer a simplified coverage against premature death, insurance companies have revolutionized the policies that they are offering by making them more comprehensive in coverage. Many term plans, nowadays, come inbuilt with riders, have different coverage variants, offer death benefits in flexible ways, etc. You should, therefore, check the coverage benefits of different plans and then choose the best term life insurance policy depending on your requirements. 3. Compare the premium rates Nowadays you can buy life insurance policies online. Such policies are available both on the insurer’s website as well as on the website of insurance aggregators. When you choose to buy through aggregators, you can compare the plans offered by different insurance companies. So, you should always compare the premium rates of different term insurance plans vis-à-vis their coverage benefits and then invest in a plan which has the lowest premium without compromising on the coverage. 4. Choose the appropriate riders Riders make the scope of coverage comprehensive and offer you additional coverage benefits. The premiums payable for the riders are also very low and easily affordable. Thus, when you buy a term insurance plan, choose appropriate riders to make the policy all-inclusive so that you would be covered against all possible contingencies. 5. Ensure a long term coverage Term insurance plans pay a benefit in case of death during the policy tenure. There is, usually, no benefit paid on the maturity of the policy. Thus, for effective coverage, you should opt for the maximum possible coverage tenure. Term plans allow coverage for up to 35 years and in some cases,

2. the coverage can also be chosen to extend lifelong. So, if possible, choose the lifelong coverage option which would cover you till 99 or 100 years of age. This way you would be assured of financial compensation on death irrespective of whenever the death occurs. 6. Buy young The last thing to remember is you should buy a term insurance plan when you are young. Buying a policy in your 30s is the wise thing to do because you can enjoy coverage from an earlier age. Moreover, when you buy young, the premium rate would be lower and you would be allowed an all-inclusive scope of coverage. Don’t miss out on a term life insurance policy when you are planning your finances. The policy would not only provide unmatched financial protection, but it would also help you in saving taxes. So, compare the available plans online and then choose the best term life insurance policy with a wide scope of cover at an affordable rate of premium.