Term Insurance

Friday, 30 October 2015

Long Term Care - Its Coming are you Ready?

Tuesday, 20 October 2015

Term Insurance - Which term insurance plans you should prefer

Wednesday, 14 October 2015

Term Insurance - Which term insurance plans you should prefer

Tuesday, 13 October 2015

Factors to consider while buying Term Insurance

Where would you head if your priority was low Risk and low premium? The first response would naturally be Term insurance. Buying term plan is a relatively easy proposition. However, there are tricks to every trade – and these are the basic factors that you would need to consider when you make your purchase decision.

Are you adequately covered? It is so easy to buy accessible instruments such as online insurance these days that the level of cover could be overlooked. It is essential that you conduct reality checks to see if your level of cover is sufficient, considering your personal and financial circumstances.
What’s the duration of your insurance cover? The last thing you would want to happen is to see that your insurance Premium of a lifetime does not come in handy just when you need it – that’s why, it is important to decide on the tenure of your term insurance, making sure it is valid to see you through your old age, and you buy it on time.
Brand value does matter. If you thought brand was all about advertising and make-believe, you may want to think again – reputation to pay clients and settle claims is all that matters when it comes to the “moment of truth”.

The rupee does not appreciate – and that’s called inflation. And the way Inflation could affect your plans is in terms of the value of your Best Term Insurance Plan as well as through the insurance premium that you pay towards it. When you calculate the amount that you would want to insure, do consider the effect that inflation could have on your decision.

Have you considered online insurance? It’s not just because it is easier for you to buy online, but also due to the fact that you could be shelling out much less than what you would if you were to buy the traditional way. And yes, with online insurance, you would also have the luxury of comparing insurance options available to you within your budget and for your circumstances, before you actually make the decision.
What’s your cover? That’s the key in term insurance. When you remember this is for a fixed term and that you are doing it with a purpose, you would focus more on cover and less on the investment part of it. Needless to say, this would turn out to be a wise decision when you make the most of your insurance premium through maximizing the coverage.

As you could see, with facilities such as online insurance available at the click of the mouse, you would be better empowered in choosing a product of your choice, precisely tailored to suit your needs.

[Source: http://www.easypolicy.com/KnowInsurance-A/Factors-to-consider-while-buying-term-insurance]

Monday, 12 October 2015

Term Plan: Buying early gives you the benefit of lower premiums

We all know it is essential to buy Term plan. But it is not just a matter of buying – it is also that of deciding what the best time is to buy one considering the costs and benefits involved. Is it too early or too late to buy? Would I be saving more or less if I decide to postpone my decision?

Here is a briefing on timing to buy term insurance, in consideration of factors such as cost, inflation, risk, and of course, tax benefit.

Does insurance cost more with time? There can be no standard way of telling how much your Premium would be when you decide to purchase. However, you could be sure of the fact that the later you buy, the more costly it would be. And the reasons have definitely to do with Inflation and risks.
What role does inflation play? In simple terms, you could expect the rupee to lose its value with time, irrespective of how much it pares against the dollar. An ounce of product A would cost more ten years down the line in all likelihood, than what it costs now. Of course, you could expect your salary to rise as well – unfortunately, while there is no sure way of knowing what your salary would be in the future, you could vouch for the fact that costs would have rocketed up. If you could find a way for your salary to match the rising costs, count yourself lucky.
What are the risks involved? If you buy Term Insurance early in your career, you would be in the low-risk bracket, and would hence have lesser premium to pay. To the contrary, if you were to find yourself in the high-risk group because of time and age, and if you decided one fine day to buy insurance, you could be sure that the insurance companies would welcome you, but only with a higher price tag.
So, what about tax benefits? Your savings on your term plan would come from lower costs associated with premiums, as well as lower taxes that you pay on account of provisions associated with income tax. Considering that money is only likely to lose its value with time, money saved today means much more than money that you would save later. And you may as well want to make use of legal provisions today, than speculate on what they could be years later when you make a buying decision.

So, if you are looking for tax benefits through term insurance, now is the time.

[Source: http://www.easypolicy.com/KnowInsurance-A/Term-Plan--Buying-early-gives-you-the-benefit-of-lower-premiums]

Saturday, 10 October 2015

Need of Term Insurance & Its Early Planning

Securing the best for families is a human trait. It will not be wrong if I said that every person who loves his family want to secure its future as well. Nowadays, we are surrounded by uncertainties, which are present in every corner of our life. Hence, it has become absolutely essential to secure family future and their needs. More so, if you are the single earner in your family, then in the scenario of an accident, disability or death, have you ever thought that what will happen to your family and who will take care of their needs if you are not there. Apart from emotional support, they would require a financial support as well to take care of the situation.

This is where a term plan comes into relevance. Here are some of the reasons for you to opt for a term insurance plan to safeguard you and your family’s future.

Delay Is Not Good

If you have already planned for buying a term insurance plan but putting off the decision for some reason or the other, then it’s time for you to get going. You must be aware that the savings which you hold in your bank account would not be enough for your family to bear the loss of your death. With this saving, they would be unable to meet the basic requirements let alone additional expenses. Hence, it is better to use those savings in a smart way and a term plan is the best way to go about it.

Term plan-cost effective

You might not be aware, but a few years back, buying a term insurance plan was very expensive. It used to costs around Rs. 50-60 thousand per year as the premium amount for coverage of Rs 1 crore. However, now you can get the same coverage at a nominal cost of around Rs 10000.

More the age-more it will cost

Yes, it is a fact that with an increase in age, the premium of the desired term insurance plan would also increase. There are many reasons behind the same. However, the most common reason is health related. As the age increases, the possibilities of having a disease also increases which makes it difficult to buy a term insurance policies and even if you buy one, it would be very expensive to afford. Hence, don’t waste your time and decide early when you are young and can easily afford the premium amount and the coverage that it offers. Compare online from a host of products available and do make sure to review your term plan every once in a while basis your needs.

Your family would love it

I really don’t know if you are going to buy a term plan or not, but your family would love it for sure. It would be a great gift for them. They would be happy when they come to know that you have taken this step for them, for their security and a better future. It shows that you want to protect them in every possible manner.

Bring peace of mind

It really feels awesome when you know that your life is covered under a term life insurance. You will feel relieved for sure. An online Term Insurance Plans would take care of all your loans and liabilities as well.

How much you should buy

Basically, the answer to this question varies from person to person. It depends upon the amount of assets that you have. As per the thumb rule, you must buy a plan which provides coverage in the range of 15 to 20 times your yearly income. Also check the family requirements which would be enough to live a similar lifestyle after you are gone.

What should be the best tenure of term plan?

Most people would go for the longest tenure. Tenure till retirement + 5 years should be good enough. With retirement your expenses fall and hence the financial reliance on your income also subsides a bit. So there isn’t too much requirement of insurance as such.

Benefits of Online term plans

Term plans are same whether it is available online or offline. But if you purchase the plan online, then you get all the benefits at the cheaper rate. It is advisable to buy term insurance plan online for the following reasons:

– Low premium rates

– Less time taking

– Minimum paperwork

– Transparent

– No health check-up for some age groups

So now that you know the various benefits of having a term plan, what are you waiting for? Start your search and find the best suitable plan for you at any of the online IRDA Approved insurance aggregators. Buying insurance and peace of mind was never so easy.

[Source: http://www.policyx.com/blogs/need-of-term-insurance-its-early-planning/]

Wednesday, 7 October 2015

Top 5 Term Insurance Plans in India

As the term insurance plans is a plain insurance policy without any embellishments, it is very important to know the yardstick to measure one policy over the other.

There are two basic standards that can help you to cherry-pick the best insurance company:

Compare the Claim Settlement Ratio of the insurance provider
Compare the premium offered

My previous editorial on Term Insurance- A necessity!, can help you to understand the fundamentals of Term Insurance policy and how it is better than other insurance plans.

In this article, I present you 5 famous term insurance plans offered by different insurance providers in India.

Let us first understand the meaning and significance of Claim Settlement Ratio before you zero in a term insurance plan.

Claim Settlement Ratio:

As we all know, insurance is a life protection tool. In case of unfortunate demise of the policy holder, the family members/ nominee approach the insurance company to claim the sum assured.

As an expectation, the insurance company, after completing the pre-requisites, should hand over the claim to the family of the deceased. But it does not happen always.

Insurance regulator IRDA’s annual reports for 2012-13 reveal that of the total 23 private life insurers, only five have a claim-settlement ratio of over 90% (in terms of number of policies). The figure tells you that many insurers are stingy when it comes to passing on the benefits to nominees.

The claim settlements ratio of an term insurance company indicates the percentage of claims that have been approved out of total claims that are unsettled.

Higher claim settlements ratio indicates that a life insurance company is making the payments when they are outstanding, in this case a premature death.

It is very important for the insurance buyers especially for those who are availing the term plan to verify the claim settlement ratio of a company before the commencement of their policy.

[Source: https://blogterminsurance.wordpress.com/2015/10/07/top-5-term-insurance-plans-in-india/]