What is a term insurance plan?
A term insurance plan is a type of life insurance cover where the insurance covers the policyholder for a certain period. The death benefit goes to the nominee if the policyholder passes away during the insurance policy term. The ultimate goal of getting term insurance is to ensure that the family holder's policy receives compensation in case of untimely death. Term insurance is also a long-term investment of sorts that your insurance POS agent can help you understand better.
When compared with a life insurance policy, the cost of term
insurance premiums is lower. If a policyholder outlives the policy's terms,
they do not receive any form of a payout. The investment for term insurance
policies is nil, unlike home insurance policy and such.
Here are some factors to keep
in mind when comparing the policies of various insurance providers
● First and foremost, decide the amount you want to be covered by
your term insurance. The difference between your liquid assets and long-term
financial obligations should help you decide your policy's cover and duration.
● Always go for a reputable Insurance Company. Try to gauge if
they have happy customers. Find out how long they have been in the business of
term insurance. Don't hesitate to reach out to friends to learn more about the
company.
● The easiest way to get the trustworthiness of insurance
companies to check their claim settlement ratio. The claim settlement ratio is
the number of insurance claims the company has versus the number of insurance
policies the company has provided. The higher the claim settlement ratio, the
more reliable the insurance provider.
● Remember to read the fine print of term insurance policies
before you decide to sign up for them. The terms and conditions of policies let
you know if the policy provides death benefits. In some term insurance policies,
the cover may not be applicable for special cases like self-harm.
Going through the fine print
carefully will help you understand the pros and cons of the policy you are
considering as a long-term investment.
Comments
Post a Comment