Peripheral guidelines on purchasing Term Insurance(Life Insurance Cover).
Peripheral guidelines on purchasing Term Insurance(Life Insurance Cover). 1. Purchase till age 60 (unless you are planning to work beyond age 60) 2. Opt for the regular payment premium option. Do not opt for a limited premium payment option like 5/10/15 years. 3. Do not purchase the return of premium term plan(TROP). The premium is much higher than a pure vanilla cover. (instead, invest the difference of premium in equity mutual funds) 4. No life insurance company can reject your claim after 3 years (stop running behind the claim settlement ratio, it changes now and then) 5. Do not purchase accidental rider in a term insurance plan (purchase it separately from a general insurance company as riders do not cover all disabilities) 6. Do not purchase a critical illness rider in term insurance plan (as you may require critical illness policy for a lifetime and a term insurance plan is required till age 60) 7. Purchase a term insurance plan with 2 inbuilt riders – waiver of premium i