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 in case of disability and terminal illness rider.

8. Choose a lump sum claim payout option (i.e. the nominee will receive the lump sum claim amount)

9. Do not go for the monthly income payout option (the income is not inflation-adjusted)

10. Do not go for the increasing monthly income payout option (you will not have the flexibility to invest your lump sum corpus)

11. Purchase it from a brand you trust in (it may cost you a bit more but you will have peace of mind)

Fin-mission's mission is you to Get Financially Empowered! Jai Hind

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