What is a Term Insurance?
Term insurance is the simplest and purest form of life insurance.
It is an agreement between you and the insurance company that in case of your demise the insurance company is entitled to pay the sum insured by you to your nominee(family).
Why do you need a Term Insurance?
Term insurance will financially protect your family and loved ones in case if your life goals (home loans, child's education) are not fulfilled before your death.
Don't take a chance on your loved ones. Be responsible and take a term insurance if you haven't taken one already.
Till what age should I insure my life?
Always ask this question, “what will happen if I die before my goals are met and what is the age that my goals will be probably met”.
Ideally 55 should be the probable age where one fulfills most of the life goals like child's education, saving for retirement, Home loans, business loans etc.
Choose the age based on your goals.
How much should I insure?
A general rule is to insure 20 times of your annual income(if your annual income is 5 lakhs then go for a sum insured of 1 crore).
Don't opt for ROP(Return of Premium) plan or endowment policies. Never mix your investments with insurance.
Always the insured amount must be based on your goals.
Do you need to add riders in your term insurance?
A simple and and short answer to this question is NO.
This is my personal take on riders as insurance companies are trying to mint money based on different riders since most of the riders are not clearly written.
Read the policy documents thoroughly about the riders and understand about it IN and OUT before you are ready to add a rider.
Do you have a term insurance?
I would be glad if your answer is YES!. If the answer is NO, please don’t delay it as the premiums for insurance will keep on increasing due to inflation. In case of Term insurance, the term insurance premiums do not change after the policy has been issued. The sooner you take the better.
If you need guidance in taking a term insurance you can always ping us on instagram . We would be happy to help you.
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