Term insurance plans were introduced with a very basic structure the plan will offer a death cover will cover youfor up to 65 years and premiums can be paid in only the annual mode then as more insurers started offering online term insurance plans things started to become a little complex today there is limited pay plans increasing cover plans staggered payout plans return of premium plans and dozens of combinations while this profusion of choices is good news it is also becoming a problem as most Millennials are unable to decide on which policy to buy in this video we'll separate the wheat from the shaft and identify the most important variables you need to consider when buying a term insurance plan before we get started make sure you subscribe to the ETMONEY Channel and hit the bell icon for updates.
let's get started number one identify your needs and the term insurance coverage you seek your term insurance coverage should broadly assess how much financial resources your dependents will need to have to provide for themselves if you were to meet and untimely death and the best way to get started on this is to grab a piece of paper and do the subsequent one estimate your dependent family's monthly expenses and multiply it 150 times this multiple of 150 factors future inflation and may be a great way to start the process to add your liabilities on account of home loans credit card bills personal loans etc 3 deduct any liquid assets that you already have like fixed deposits stocks and mutual funds fourth add your expenses planned on account of important life goals that are likely to happen in the next 15 odd years like your children's higher studies or the marriage etc and point 5 .
I use peace of mind rather than coverage per rupee of premium is because consumers often value some key intangibles in decision-making this can be things like stability of the insurance provider or its reputation in the eyes of the policyholder since term insurance is a long-term contract often running into 30 40 or 50 years it is important for you to be happy with your decision of insurance provider which will be a combination of premium and your perception of the insurer a useful tip here for most insurance companies term insurance policies that are sold online on platforms like ETMONEY are cheaper than policies sold off line in branches or our agents so it makes more sense to purchase insurance plans online because it gives you a transparent premium advantage number four choose your add-ons wisely insurance plans offer riders at reasonable costs which should certainly be considered by you .
Even if it might not fit in your requirements there are four major riders that are available which are one additional cover for depth due to accident for an amount in addition to your basic depth cover shall be paid if you were to die in an accident to critical illness cover where a lump sum amount is paid on the diagnosis of one of the listed critical illnesses with the life insurer three waiver of premium on disability where future premiums are waived off if the policyholder is rendered permanently disabled and four waiver of premium upon critical illness where future premiums are waived off on diagnosis of a listed critical illness off the four riders the two waiver of premium riders come at low premiums while the critical illness rider is generally the most expensive one you have to run some permutations and combinations to see if the additional benefit match up for the premium charged and don't forget to read the fine print of all these add-on which tend to be different for the and insurance companies .
when you see a number of 95 percent in the claim settlement ratio column it means 95 out of hundred claims reported to the insurance company were settled a word of caution here the claim settlement ratio is merely an indication and if this ratio is over 95 percent then the company has been very efficient about settling claims you really don't need to go much deeper in to it as to see who has 99 percent ratio or who has 98.5 percent ratio it is advisable to use the claim settlement ratio as a filter rather than a key decision making criteria term insurance are long-term contracts which benefit your dependents and it is in your interest to identify the right plans for your family with the use of the 5 considerations explained.
let's get started number one identify your needs and the term insurance coverage you seek your term insurance coverage should broadly assess how much financial resources your dependents will need to have to provide for themselves if you were to meet and untimely death and the best way to get started on this is to grab a piece of paper and do the subsequent one estimate your dependent family's monthly expenses and multiply it 150 times this multiple of 150 factors future inflation and may be a great way to start the process to add your liabilities on account of home loans credit card bills personal loans etc 3 deduct any liquid assets that you already have like fixed deposits stocks and mutual funds fourth add your expenses planned on account of important life goals that are likely to happen in the next 15 odd years like your children's higher studies or the marriage etc and point 5 .
I use peace of mind rather than coverage per rupee of premium is because consumers often value some key intangibles in decision-making this can be things like stability of the insurance provider or its reputation in the eyes of the policyholder since term insurance is a long-term contract often running into 30 40 or 50 years it is important for you to be happy with your decision of insurance provider which will be a combination of premium and your perception of the insurer a useful tip here for most insurance companies term insurance policies that are sold online on platforms like ETMONEY are cheaper than policies sold off line in branches or our agents so it makes more sense to purchase insurance plans online because it gives you a transparent premium advantage number four choose your add-ons wisely insurance plans offer riders at reasonable costs which should certainly be considered by you .
Even if it might not fit in your requirements there are four major riders that are available which are one additional cover for depth due to accident for an amount in addition to your basic depth cover shall be paid if you were to die in an accident to critical illness cover where a lump sum amount is paid on the diagnosis of one of the listed critical illnesses with the life insurer three waiver of premium on disability where future premiums are waived off if the policyholder is rendered permanently disabled and four waiver of premium upon critical illness where future premiums are waived off on diagnosis of a listed critical illness off the four riders the two waiver of premium riders come at low premiums while the critical illness rider is generally the most expensive one you have to run some permutations and combinations to see if the additional benefit match up for the premium charged and don't forget to read the fine print of all these add-on which tend to be different for the and insurance companies .
when you see a number of 95 percent in the claim settlement ratio column it means 95 out of hundred claims reported to the insurance company were settled a word of caution here the claim settlement ratio is merely an indication and if this ratio is over 95 percent then the company has been very efficient about settling claims you really don't need to go much deeper in to it as to see who has 99 percent ratio or who has 98.5 percent ratio it is advisable to use the claim settlement ratio as a filter rather than a key decision making criteria term insurance are long-term contracts which benefit your dependents and it is in your interest to identify the right plans for your family with the use of the 5 considerations explained.
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