Common Questions That People Ask While Researching For The Best Term Insurance Plan

Everyone wants to take care of their families in any way possible. If you have decided to begin investing in a term insurance plan, you are certainly moving in the right direction, as far as protecting your family is concerned. It is one of the most basic, effective, and must-have insurance plan for everyone. But be advised, buying a term life insurance plan isn’t as easy as you think, and especially more so, if you don’t know much about insurance. Due to this, people often have questions regarding the use and purchase of a term policy. In this article, we are going to try and answer some commonly asked questions about a term insurance plan.


  • How to buy the best term life insurance plan?


Whether or not a term insurance plan is the best for you completely depends on your requirements. There are three things you should address while buying a term policy that will prove ideal for you. Since the premiums for a term policy are cheap, opt for a term life insurance that offers maximum coverage based on your financial worth. The tenure of the plan should also be longer for better financial security. Preferably buy a plan online since they are easier, faster, and cheaper to buy.


  • Is the premium for a term policy the same for everyone?


Obviously not! The premium that is to be paid for an insurance plan is decided by taking various factors like the age and health of the applicant into consideration. Some of the parameters that decide the premium for a term policy include- the coverage and term of the plan, the medical and family history of the insured,  Occupational hazards, lifestyle habits, and so on.


  • What are the different types of term life insurance plans?


Term life insurance plans are further divided into four variants- Level term plan, the return of premium plan, increasing term plan, decreasing term plan. 


  • What will happen if you discontinue paying the premium?


It is a compulsion to pay your premiums on time while your term policy is active. If the payments are due, you will be offered a grace period to make the payments. If you are unable to do that as well, then the policy will lapse. Sometimes the reason for not being able to pay the premiums could be genuine. In such a scenario, adding a premium waiver rider while purchasing the plan comes in handy.

Get in touch with an insurance advisor at the earliest to know everything about a term insurance plan before you purchase one.