Tuesday, July 29, 2025

How to select Term Insurance

✅ Step-by-Step Guide to Selecting Term Insurance

1. Calculate the Right Coverage Amount

Rule of thumb: 15–20 times your annual income.

Add liabilities (home loan, personal loan).

Add future goals (child’s education, marriage).

Subtract existing savings or investments.


👉 Example:
Annual income: ₹10 lakh
Cover: ₹2 crore


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2. Choose the Right Policy Term

Ideally, cover until your retirement age (usually 60–65 years).

Don’t take a short-term policy to save premiums.



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3. Compare Insurers Carefully

Check on:

Claim Settlement Ratio (CSR) (Above 95% is good)

Solvency Ratio (Above 1.5 is safe)

Customer reviews on service and claim process





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4. Choose the Right Payout Option

Lump sum: One-time payment to nominee

Monthly income: Steady payout every month

Hybrid: Part lump sum + part monthly (ideal for salaried families)



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5. Don’t Fall for Riders Unless Needed

Riders = Add-ons (like accident cover, critical illness)

Add only if you genuinely need them

They increase the premium



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6. Buy Early for Lower Premiums

Premiums increase with age and health issues.
Best age to buy: 25–35 years.


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7. Always Buy from a Trusted Person

Go through the insurer’s website or IRDAI-registered platforms.




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8. Disclose Everything Honestly

Never hide:

Smoking/drinking habits

Existing health conditions

Past hospitalizations


👉 Hiding can lead to claim rejection.


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🎯 Bonus Tip:

Don’t just choose the cheapest plan.
Choose the most reliable one with good claim experience.

Contact 7737726236

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