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Why should you Buy a Term Insurance Plan Early?

dateKnowledge Centre Team dateMay 25, 2021 views192 Views
Buy a Term Plan Early | iSelect Star Term Plan | Buy the Best Term Plan Online

When you are in your 20s, getting a term plan is the last thing you have on your mind. The popular belief in the 20s is that you don't need a term plan because you are young and healthy. Also, you think since you don't have any responsibilities and dependents, a term plan is not needed. Contrary to popular belief, you should buy a term plan as early as possible.

You may not have responsibilities today, but we all have them in the future. An important aspect of future planning is to ensure your loved ones are always protected. You can do this by buying a term plan. Term insurance plan promises to pay the nominee a sum assured if the policyholder dies during the term of the policy.

3 Reasons to Buy a Term Plan Early

You should buy a term insurance plan as early as possible in your life for the following three reasons:

i. Premium amount is lower

When you buy a term plan at an early age, the premium you need to pay is low. The premium amount increases as you grow old. Insurance companies consider your age and health condition when deciding the premium amount. Naturally, you are healthy in your mid-20s, and hence the premium amount is lower.

ii. You pay less in total as the premium amount is locked

The premium amount is locked in a lifetime, so if you buy a term plan early, you save a big amount of money over time. For example, consider below two cases:

Case 1: You buy a term plan at 25 with a coverage of Rs 1 crore, valid till 75 years. The premium amount will be Rs 5000. Over 50 years, you pay Rs 2.5 lacs as a premium.

Case 2: You buy a term plan at 35 with a coverage of Rs 1 crore, valid till 75 years. The premium amount will be Rs 12,000. Over 50 years, you pay Rs 6 lacs as a premium.

iii. You Can Increase Your Life Cover at a Lower Cost

Your family, income, lifestyle, and financial responsibilities will grow as you age, and so should your term insurance cover as well. If you buy term plans like iSelect Star which let you increase your life cover within the existing policy, you can secure the additional cover at a lower premium cost.

The application process is also faster, as you may not have to go through the complete application and documents again.

Is Saral Jeevan Bima an Affordable Term Plan that you can Buy?

Getting a perfect insurance plan for yourself and your family will require a considerate amount of time and energy. While you look for a life insurance plan that covers all your needs, it is important to get a simple term plan NOW. It will ensure your family is protected meanwhile. Saral Jeevan Bima is the simplest and most affordable type of Term Insurance plan you can buy when you are just starting off your career.

Features of Saral Jeevan Bima

Listed below are 9 attractive features of Saral Jeevan Bima that makes it a “must-buy” if you are in your early 20s and you are looking for an affordable term plan:

i. You get insurance cover at an affordable price

ii. The age of entry is between 18 years and 65 years

iii. The age of maturity is between 23 years and 70 years

iv. The policy is very simple to under and the process to purchase is even simpler

v. You get multiple premium payment term options. You have an option to make a single premium or pay a premium for 5/10 years or pay throughout the policy term

vi. If one opts for a single payment option, in the event of death, the nominee will receive 125% of the single premium or absolute amount assured to be paid on death (whichever is higher)

vii. If one opts for a regular or limited premium payment option, in the event of death, the nominee will receive 10 times one annualized premium or 105% of total premium paid or absolute amount assured (the higher of three)

viii. Sum assured is between Rs 5 lacs and Rs 25 lacs, offered in multiple of Rs 50,000

ix. You also get tax benefits on the premium amount you pay

How to Buy Saral Jeevan Beema?

Canara HSBC Oriental Bank of Commerce Life Insurance offers Saral Jeevan Bima Term plan, and you can buy it by following 5 quick steps:

i. Decide the sum assured you want

ii. Choose your policy term, premium payment frequency, and premium payment term

iii. Provide basic information like your age, education, health status, alcohol/tobacco consumption, etc

iv. Based on the information you have shared, the premium is calculated

v. Read the final terms and conditions of the policy, if you agree, you can start paying your premium

Other Insurance Plans that you may Consider

Term plan prepares you and your family for challenging times. The other type of insurance you should look to secure the future of your family is health insurance. Health uncertainties and risks are part of life, and you should be prepared for them. Health insurance provides you with financial backup at the time of a medical emergency. Canara HSBC Oriental Bank of Commerce Life Insurance Health First Plan offers you a health insurance cover that will help you overcome your immediate medical expenses by giving you a lump-sum amount.

How to Buy the Right Term Life insurance?

Once you have secured the future of loved ones by buying the Sara Jeevan Bima plan, you can explore a life insurance plan with more benefits. Looks for life insurance that offers you:

i. Right life cover amount: You have a certain type of lifestyle and you want your family to continue the same lifestyle even in your absence. For that, you need to look for an insurance plan that will cover all your future expenses. iSelect Star Term Plan gives you an option to choose the cover amount as per your need.

Buy a Term Plan Early | iSelect Star Term Plan | Buy the Best Term Plan Online

ii. Right policy tenure: You should opt for long-term policy tenure. Ideally, you should choose a policy that offers you a tenure of your retirement age minus your current age. However, it’s better to keep an extended policy given the increasing age of loan maturity and employment.

iii. Add-ons offers: Check for the add-ons the life insurance plan is offering - base cover, accidental death benefit rider, cover against critical illness, etc. Under iSelect Star Term Plan, you are insured for both deaths and terminal illnesses.

Learn how term insurance riders can benefit you.

iv. Claim Settlement Ratio: This refers to the number of claims the company has settled per 100 cases. Canara HSBC Oriental Bank of Commerce Life Insurance has a claim settlement ratio of 98.12% for individual claims as per the latest estimates.

Thus, you can keep your family safe with Saral Jeevan Bima while you search for an ideal term cover for them.

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Frequently Asked Questions (FAQs) for Term Insurance

A person can only purchase a term insurance plan till the age of 65 years, and they can choose the risk coverage for up to 99 years of age. One can easily buy the best online term plan between the age of 18 to 65 years.

This being a term plan doesn't offer any payout after maturity or expiration date.

Each insurance company has its own term insurance premium calculator. If you want to check out the premium quote, go for the iSelect Star term plan calculator. It gives a premium amount based on your age, gender, habits, education, and annual income.

You can purchase an iSelect Star term plan anytime between 18 to 70 years of age.

It depends on your needs. For example, if you want to cover a child's education or wedding expenses, you have to include them in your coverage. Your premium will be calculated accordingly.

If your key purpose is to give your Family financial protection, go for the term insurance plan. And if you want some savings, in the end, go for a traditional life insurance plan.

Go for at least 12 times cover than your annual income. Or you can go as far as 20 times coverage as per your needs.

The right time is when you don't have anything to keep your Family safe from financial storms, and they rely on you for financial needs.

If you are unable to make the payment or suffering from a terminal illness, a term plan pays a part of the sum insured to treat your disease.

Term insurance riders are attachment or endorsements made, while taking the term insurance policy, as a supplementary coverage to policyholders. Apart from the core death benefit, term insurance riders offer below-given additional benefits:

  • Accidental Death Rider When a person suffers from a terminal illness, his/her family ends up spending a significant amount in treatment and medical expenses. Accelerated death rider pays a part of the sum insured in advance to cover such costs and save the family from running out of cash.
  • Accidental Disability Rider If the policyholder can't pay the premium because of an accident or permanent disability, a sudden disability this pays the premium on behalf of the policyholder till completion of policy term or for a defined duration.
  • Critical Illness Rider If the insured person gets a heart attack, cancer, or any other critical illness, this rider pays a lump sum on valid diagnosis.
  • Premium Waiver Rider If the policyholder is unable to make payments due to income loss or disability, a premium waiver rider waives off all future premium payments. And the term policy remains active until the expiration date.
  • Income Rider: The rider ensures that your family receives regular income + sum insured in case of unfortunate demise of life insured.

Anyone can go for life insurance as it offers some savings after the maturity date, but it doesn't cover the protection of your family . The best term insurance plan is solely designed for taking care of loved ones if something happens to you. Term plans act as a shield between your family and sudden financial fall. They make sure that your family lives a healthy life even after you. With a little amount paid per year, you can be worry-free from the family's financial conditions.

Questions that you need to Ask while Buying a Term Insurance?

  1. 1. Amount of premium you have to pay based on your age, habits, education, and monthly income
  2. 2. The total number of benefits covered in the term plan. Do they include benefits that you care about the most?
  3. 3. How to save money on tax if you pay for the term plan?
  4. 4. Do they offer regular income options?
  5. 5. Can you change the coverage and premium in the future?
  6. 6. Does the claim consider valid if death occurs outside India?
  7. 7. Which kind of death is not covered by insurance?
  8. 8. Can NRIs take term insurance? If yes, what are the conditions?
  9. 9. Does the term insurance plan have a cash value if you decide to cancel the policy?
  10. 10. Under what circumstances can a term insurance plan be cancelled?
  11. 11. Can I pay the premiums online or make electronic payments?
  12. 12. What will happen to the term plan if the life assured starts smoking after purchasing the policy?
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