07/07/2022
Buying a term insurance plan is easier than you think. Almost all insurers now Offer online policies with different options and additional features. Each of these variants is useful in certain situations. While this profusion of choices is good news, it can also become a problem. Here are a few things to keep in mind when you go:
Insurance Cover:
A Rs 1 crore cover may seem adequate, but inflation will keep eroding its value. For this, some companies have designed plans that increase the cover every few years. The cover increases by 5-10% every few years, but there is a cap on the maximum increase.
Don't avoid medical tests:
Not going for a medical test may be convenient, but will be costlier. The premiums are lower if the medical test shows that the applicant is in good health. More importantly, once you go through the medical tests, the onus of spotting the pre-existing disease shifts to the company.
Get the tenure right:
Don't buy a plan of 15-20 years that will end when you are in your 50s. The life insurance needs are highest at that stage of life. Buying a new insurance policy in your 50s will be very costly. You might even be denied the cover if you have developed a health condition.
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