Life insurance should be an essential investment in every individual’s financial portfolio. It provides you with the financial security you and your family needs and guarantees some much-needed peace of mind. In particular, for those seeking life insurance online for high coverage at low premiums, there is no better option in the market than availing a reliable term plan.
However, not all term plans are alike. Indeed, certain features remain similar between term insurance plans across the board. But there are more than a few finer details that could be the difference between availing a term plan built to last and one that could lead to disappointment.
To avoid the latter, it is essential to be careful while picking out the term plan perfect for your needs. Here are 8 mistakes you must avoid while choosing a term plan:
1. Not enough coverage: It is difficult to estimate exactly how great a financial burden might be placed by an unexpected emergency. To make sure your family members never find themselves in dire need of finances, make sure to avail a term plan that offers ample coverage. It is highly recommended that the sum insured be at least 10 times the policyholder’s annual income.
2. Term not long enough: It might at first seem wise to opt for life insurance online for a shorter term, in order to pay lower premiums. However, from a long-term perspective, this only ends up being a losing investment. Signing up for new term plans will result in new, higher premium amounts and end up costing more than a term plan with a long tenure.
3. Delay in getting a term plan: When we are young and healthy, life insurance seems like an unnecessary expenditure. However, it is when one is young and healthy that one can enjoy the most term plan benefits. Not only can you avail lower premiums, and have your choice of term insurance policies but also eliminate your chances of application rejection.
4. Insurance offline: For years, the traditional method of availing offline has been by visiting a branch, filing through an agent and with plenty of paperwork. However, with the variety of online term insurance available, it is important to remember that insurance can be conveniently availed online too. In fact, online term plans can cost less and save you a lot of trouble and hassles.
5. Only seeking low premiums: As a potential policyholder, it is your right to avail a term insurance that offers the most economical premiums. However, attractively low premiums can be misleading as they may not provide you with the reliability or additional benefits you might need to ensure proper coverage. Always look for a company with a reputation as well as a glowing track record.
6. Not doing your research: While the whole variety of term plans in the market can make their claims, it falls upon you to do your due share of research before availing any insurance policy. Make sure to do a thorough round of research and study each individual term plan as well as its terms and conditions carefully.
7. Not providing correct/enough information: Before buying an online term insurance plan, it is absolutely essential that you are up-to-date on all your health-related information that you will then be sharing with the insurance company. In case there is a discrepancy in information, your family could have a hard time getting their claims accepted, thereby defeating the entire purpose of the term plan.
8. Too many policies: In some cases, people might have a hard time choosing the best online term insurance policy for them or might wish to avail different policies for different benefits. However, despite their low premiums, too many term plans can take a toll on your finances. Instead, focus on finalising one reliable and efficient term plan that can last you for decades to come.
To find a trusted, reliable term plan for your needs, look no further than Aegon Life Insurance’s iTerm Plan that comes in 3 different term plan variants as well as a number of rider options. It also comes with a host of features such as life cover up to the age of 100 years as well as benefit options for terminal illnesses.
