Finding an Affordable Term Life Insurance
A term policy is the simplest form of life insurance wherein the policyholder is covered for a predefined period. These type of policies provide a death benefit to the nominees or beneficiaries if the insured were to die within the term. The policy does not provide any other returns other than the stated benefit. In other words, if the insured survives the coverage period, he or she will not get any benefit on maturity. However, he or she may choose to renew the policy.
There are several such insurance providers operating in the market, and selecting from among them can be quite perplexing. To add to the misery, the plans of all these providers have several differences between them.
Here are some things to keep in mind when looking for the best deal:
Tip 1 – Search in the right places
It is recommended to begin by checking with your own bank, and see if they are affiliated with any such providers. If you are connected with a financial institution in any way, then you can check there too. But the problem is, because of their affiliations, banks and financial institutions will generally try to push those products onto you. Also, their variety will be quite limited. The best option is to search on the Internet. You will find several options, and there will be no excess baggage of someone hard-selling these products to you.
Tip 2 – Ask for quotes
Once you have begun your online hunt, you will need to ask these providers for quotes. Many of the companies provide their quotes for free. Try to benefit from these. Since there are vast differences in the structure of the cover provided by various companies, their costs will vary too. In fact, some of the top providers can have a difference of as much as USD 300 in the amount of premium. The idea is to take at least ten to twelve quotes before you can compare them.
Tip 3 – Compare the quotes
It is absolutely vital that you compare the quotes in the right way. It is not enough to compare them just by the premium, but also check what they have to offer. Some of these policies will take lesser premiums but will pay less too. Then there are other services, too, that need to be taken into account. The best thing to do is a like-to-like comparison, comparing every feature and not just the cost. If you are not sure about making the right kind of decision at this point, ask someone who knows about finance, to help you out.
Tip 4 – Be truthful
Your application will have several things to be filled in, and you must be absolutely truthful about these points. Common facts like age and gender cannot be fabricated, but there are things like smoking, alcohol intake, and medical conditions that people tend to lie about. However, this is a very foolish thing to do. When the claim is made, all these points are easily verifiable.
If factually incorrect information is found, the policy payouts would be forfeited and the cover declared null and void. For example, the premium amount for a smoker would be a little higher than one who is not, but the benefits will be paid out on death. However, if you lie about it, your beneficiaries will not get that amount too, and the premiums paid will be forfeited leading to financial loss. Honesty is really the best policy here.
Tip 5 – Do not procrastinate
With the advancements in medical treatments in recent times, the cost of life insurance is going down. Prices are already much lower than they were about a decade ago, and they are still going lower, as more inventions are being made. But that does not mean that you should wait any longer. Accidents can happen anytime, and this cover could be a big boon if anything untoward were to occur.
