This may be a common question we always face in our life. Cheap deals and discount offers are always been a tactic of Indian companies to attract consumers but do you think that is also the right way to approach at things like buying a term insurance policy though it can be good while deciding upon your next mobile phone . Buying a term insurance is a long term thing and we should not be persuaded towards a insurance plan only because it is cheap.
Take the case of Rajiv and Radhika, both got married two years .Rajiv works with an IT firm and Radhika is a house .Rajiv was already serving two loans at this stage, one for his car amounting to Rs. 4lacs and other for home which he bought last year for Rs.50 lacs. The couple realized that there is a need to look for a term insurance and they feel a plain plan would work for them but is the premium should be the only reason why you should buy a particular plan or there is more to it?
Term Insurance is a critical thing from the perspective of making a right financial plan for your family. This becomes more critical in case of Rajiv because he is the only bread earner in the family. Looking the current financial liability of Rajiv which is close Rs.54 lacs he should first ascertain the amount of cover he should look into and the tenure for he needs a policy. After all this the premium comes next to it. While deciding upon the amount of cover he should consider some critical factors which are primarily
He actually need to define an answer to the above mentioned factors so that even if he is not there to help his family say due to uncertain death his family stays well off without any financial liability and all goals planned by Rajiv are achieved. Now answering another critical question on tenor of the policy, one should look at it close to the age of retirement. Most term insurance plans offer cover till the age of 65. You can always save money by applying for low cover and small tenor but that doesn’t suffice your need of having a term plan.
Other that what discussed above you should always look at the fact that do you need extra riders with your term plan? Add covers such critical illness, accident death or disability are some of the additional cover option available with term insurance plans today. But in this case the question that need to answered is , do you actually need these additional cover and is your policy providing it by just free of cost or it is coming with additional expense.
So that we can conclude is that premium should not be the governing factor for deciding a particular term insurance plan. Cheaper premiums are just misnomer and if your decisions get driven by this you might end up making a financial mistake. Plus with rising cost of living the term cover and the additional cover which you might have opted needed to review. You can always get best deals on Buying Online Term insurance plans because insurers charge lower to online policyholders but don’t make a hasty decision based upon the amount of premium that is being charged to you.