🛡️ Term Insurance: Everything You Should Know (Simplified)

 

🛡️ Term Insurance: Everything You Should Know (Simplified)

✅ 1. Best Tenure

• Take term insurance till age 60–65.

• Why? You’ll achieve your financial goals by then.

• Don’t pay extra premium for cover till 80–90.

✅ 2. When Is It Necessary?

• If your family depends on you, or you have a home loan, get insured!

• Take a term plan of 20X your annual income.

✅ 3. What Should It Cover?

• All loans and liabilities.

• Sustain your family’s current lifestyle.

• Beat inflation over time.

✅ 4. Life Changes? Update Your Cover

• After marriage, childbirth, or new loan, increase your life cover.

✅ 5. Cheapest & Purest Life Insurance

• Term insurance is the only life policy you should buy.

• It’s low-cost and high-coverage.

✅ 6. Tax Tip

• If you're investing more than ₹1 lakh/year (e.g., ELSS), take term insurance to complete your 80C deduction.

✅ 7. Don’t Worry About Wasted Premium

• You don’t regret car insurance if you don’t crash—same with term insurance.

• Life is unpredictable.

✅ 8. SIP to Pay Premiums

• Set up a monthly SIP in a liquid fund to accumulate premium easily.

✅ 9. Take It Early, Pay Less

• Premiums are locked when you buy early.

• Delay = Higher premium.

✅ 10. Keep Insurance & Investment Separate

• Don't mix them (e.g., ULIPs).

• Higher premium + risk of policy lapse.

✅ 11. Use Mutual Funds for Long-Term Goals

• Don’t extend term plan beyond 65. Invest extra in mutual funds.

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🧐 Choosing the Right Term Plan

Company Must Be:

• Big, reputed, trustworthy.

• High Claim Settlement Ratio (CSR).

• Strong AUM (Assets Under Management).

• Check IRDAI reports — stick to top 5 insurers.

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➕ Optional Riders (Add-Ons)

1. Critical Illness Rider

   • Lump sum payout on diagnosis of major illness (check exclusions).

2. Accidental Disability Rider

   • Pre-decided amount for partial/full disability after an accident.

3. Zero-Cost Term Plan

   • Return your premiums at 60 if no longer needed.

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❌ What to Avoid

• ❌ Return of Premium Plans (Too expensive)

• ❌ Limited Pay Options (Invest extra in mutual funds)

• ❌ Monthly Payout to Family (Better to take lump sum)

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✅ How to Avoid Claim Rejection

• Always disclose smoking, drinking, illnesses.

• Medical checkup is a must.

• Keep records filed safely.

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⚠️ Bonus Tip

• Many insurance claims go unclaimed.

• Use an advisor who can help your family navigate after you.

contact no 7737726236 for more info