If you are new to the world of life insurance, and are looking for a policy that
covers you for a specific period, a term life insurance policy may be your best
bet. While choosing a term life insurance policy, keep the following factors in
Premiums: Most term life insurance policies offer you a choice between paying
a fixed annual premium that remains the same until the policy expires and an adjustable
plan, where your premium keeps changing at regular intervals. The advantage of a
fixed premium is that you do not have to keep taking medical tests and other assessments
to get the best premiums rate.
Renewability: Check if the policy you are considering is renewable or not.
If so, what are the terms? Will the premiums be higher when you choose to renew
Make sure you ask all these questions before you purchase a term life insurance
plan. If your policy is not renewable, keep in mind that you will have to go through
the entire procedure once again, including the medical tests.
Term: Choose the duration of the policy (1, 5, 10 or 15 years) based on your
personal needs and requirements. Ideally, the younger you are, the longer duration
term plan you should select. Compare policies offered
by various companies and select the one which provides the most comprehensive coverage
at an affordable premium.
Reputation: Choose companies that are rated highly by experts or insurance
rating firms. You could also look up insurance companies and their policies online,
and read reviews given by existing customers.
Buying term insurance need not be a painful and confusing task, provided you are
aware of what you are looking for in terms of coverage, how much you can spend,
and how long you need insurance for.
Premiums can be fixed or adjustable. Choose wisely based on what you are comfortable
Make sure your policy is renewable
Choose an appropriate term
Check if the firm of good reputation