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What are the key things to look for in a term life insurance policy?


Planning to buy a term life insurance policy?

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 mind:

-          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 your policy?
 
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.
Quick Facts
• Premiums can be fixed or adjustable. Choose wisely based on what you are  comfortable with
• Make sure your policy is renewable
• Choose an appropriate term
• Check if the firm of good repute​