1) When you are tasked with the ultimate responsibility of securing your family’s future, it is up to you as the earning member to take care of it. If something happens to you, it is possible that your loved ones may have to scramble for money to take care of their needs and goals.
2) Regardless of how well-planned and organized you are in your life, you can truly protect yourself from the risk of eventualities such as untimely demise and critical illness. Investing in a term insurance plan at the right will hedge these risks and ensure that your family is also well protected if you are not around anymore.
3) With the investor profile changing at a rapid pace, there are several term insurance plans available in the market. You can either look for insurance plans that come with a death benefit, payable to the policy nominee in case of death during the policy term.
4) If you want to secure your investment for yourself, then you can also consider investing in a term plan with a return of investment.
5) A term plan with a return of premium will rewards you by giving back all your premiums if you survive the policy term, also known as maturity benefit. By planning for life’s uncertainties, you can be prepared for any eventuality that comes knocking on your door.
To get the best term insurance with return of premium for yourself and your loved ones, be sure to use the following tips;-
i) Determine the Number of Dependents in Your Family
First things first, you need to think about the number of family members who are dependent on you for their needs. This may naturally vary at different stages of your life. The financial responsibilities of someone married will be different from an unmarried person.
Therefore, it is essential to choose the insurance cover amount based on these factors. However, you need to keep the future in mind and plan as per your increasing financial responsibilities.
ii) Choose the Right Term Plan
Your financial situation will not remain the same forever. Therefore, you need to choose an insurance plan that allows you to enhance your cover during critical stages of your life. For example, insurance companies will allow you to expand your cover by 50% when you get married and by 25% when you become a parent. Your priority should be to choose the one that gives you maximum benefits for the least amount of investment.
Don’t forget to review the term plan with return on premium if you are looking for maturity benefit. Similarly, there are also child life insurance plans that help you secure your child’s future, in case you are not there anymore.
You should choose the term plan based on affordability and policy features. Term insurance plans from reputable insurers such as Max Life Insurance allow you to shop for the right plan by comparing and reviewing the policies online before making the final selection. These websites also allow you to make the purchase quick and hassle-free.
iii) Opt for an Optimal Life Cover
The one thing about life insurance is that you need to find the perfect sum assured to ensure that it meets your needs. You are underinsured means that your family will not have enough financial subsistence to get through with life. At the same time, over-insuring yourself means the cost of premiums will be hard to afford in the long run. Therefore, the trick is to find the accurate sum assured for it to do its job, which is to protect your family’s financial wellbeing in your absence. Therefore, when choosing the sum assured, you need to take your age, lifestyle habits, current liabilities, plans, debts, and inflation into account.
iv) Stay Invested for Long-Term
Another important thing about choosing the right term plan is to choose the right policy duration. Since life insurance is a long-term financial product, the sooner you start, the better it would be. When you start young, you can not only benefit from lower premiums but also enjoy increased savings by the power of compounding. This is especially true if you invest in term insurance with return of premium. The maturity benefit or death benefit will be higher if you are invested in your life insurance for a long time.
v) Understand the Riders Options
Riders are add-on benefits that can be integrated into your insurance policy to enhance the coverage of your life insurance policy. For instance, you can choose the critical illness cover that can be added to your term insurance.
This cover will protect you against critical illnesses by paying for your treatment and other expenses if you are diagnosed with one of them. Similarly, there are other rider benefits such as accidental benefit, waiver of premium, and loss of employment, to name a few. When buying term insurance, you should purchase from a trusted provider only.
When you find the perfect life insurance product suitable to your needs, just check the insurer’s claim settlement history to make the financial decision. Don’t forget to read the fine print and educate yourself about the policy terms before investing.