Take Care of These Four Things Before Taking Term Insurance

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Term plan is the most pure form of insurance policy. The simplest

way to get life insurance is term insurance. In this, the person taking

the insurer pays the premium for a certain amount of time. If the

insured dies during a fixed period, then Sum Assured or a lump sum

is paid to his family or nominee. After giving a nominal premium

every year in the term plan, you are provided cover for some

specific years. Typically the term policy is taken for 10 years, 15

years, 20 years, 25 years and 30 years.

Keep these things carefully before buying Term Insurance:
1 Minimum Cover: The need for one person for a minimum cover

can be different from the other person. But it is said that a earning

member should have at least 10 times his annual income. Also, it is

also advisable to increase the cover with an increase in your

income or buy additional term insurance.

2 Premium of Term Insurance Plan: Term insurance premium

depends on three factors – age, age of coverage and term. For the

same age, term and life cover, the premium amount will vary from

the insurer to the insurer. Therefore it is advisable to compare

online before buying term insurance.

3 How many types are there Term Insurance: With aging the

person’s insurance needs also increase. Some insurance companies

offer schemes that come with an increase or decrease in the sum

insured.

4 Nomination: This term is the most important in insurance. To

ensure that the income of the insurance is mentioned in the name

of your death, the name of which you have mentioned is met, so

you should fill the details of the nominee while buying insurance.

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