Planning to buy term insurance? Here are things you should check

The coronavirus outbreak has once again taught us not to take life for granted. There are things beyond our control that can have serious impact on our future. While we can’t control these, we can always be prepared for such situations.

ZeeBiz WebTeam | Jun 19, 2020, 04:52 PM IST

The coronavirus outbreak has once again taught us not to take life for granted. There are things beyond our control that can have serious impact on our future. While we can’t control these, we can always be prepared for such situations. Covid-19 has made people think seriously about buying health insurance, term insurance cover. These provide financial cover in unpredictable situations. However, you need to check out a few things before buying an insurance plan.

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Policy term

Policy term

First thing you need to carefully check and decide is the policy term. Also, you need to understand that it can be different to premium paying term as well. As a buyer, you need to decide for how much period you are willing to pay the premium and for how long do you plan to get the cover. 

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Premium payment options

Premium payment options

Once you locked in on policy term, you need to decide the premium payment term and frequency. The policy premium payment term is the duration for which a policyholder has to pay the premium. Insurers offer different options on premium payment term such as single/limited/regular and also the frequency of payment of premium such as monthly/quarterly/half-yearly/annually.

The premium payment option needs to be selected on the basis of your age and earning capability. If your salary is more, you can afford to be more aggressive with payment options. 

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Premium payment frequency

Premium payment frequency

Lastly, you need to choose the frequency of insurance premium. While annual payments are common, there are options that allow you to pay half-yearly/quarterly/monthly. Your total premium outgo will increase as you increase the number of instalments. Paying in instalments mean you will have to renew the policy. If you fail to do so, your policy will lapse.