Why Buy Term Insurance Despite Increase in Premiums
The coronavirus (COVID-19) pandemic has made life uncertain, as this deadly virus has hampered the well-being of people worldwide. The fear of COVID-19 has grown considerably in people’s minds, which has made them realize the importance of securing their family’s financial future. Due to this, the need for a life insurance plan is on the rise.
Term insurance plans are one of the most sought-after insurance policies available in the market today, as they offer a substantial sum assured at an economical premium. Due to the ongoing situation, numerous insurance companies have increased the premium for new term plans. Even though the premium of term insurance in India has risen, it is still advisable to invest in it.
Why you should invest in a term insurance policy
Here are some reasons that make buying term plans essential:
- Increase in the mortality rate
Because of COVID-19, numerous people have lost their lives in India as well as across the world. Apart from this pandemic, India has witnessed natural calamities, like cyclones, floods, and earthquakes in 2020. As you do not know what lies ahead, it is necessary to safeguard your family’s monetary well-being by investing in a term insurance policy.
- The demand for term plans has increased significantly
People understand the importance of having a term insurance plan primarily because of the widespread COVID-19 and how life has become unpredictable. Due to this, the premiums of these plans have increased considerably. However, it is recommended that you procure a term plan, as it offers a high sum assured at an affordable premium. As there are numerous insurance companies offering term insurance plans, selecting the right one can be a daunting task. Here, you can use a term plan calculator to compare the various features and premiums offered by different policies. Therefore, you can opt for a policy that can meet your requirements.
Is it wise to buy a term plan now?
Yes, you can purchase a term plan at the earliest. If you think that the premium will be lower once the COVID-19 scenario is controlled, then you are wrong. What if something unfortunate happens to you in the meantime! How will your family cope with the financial expenses in your absence? So, do not endanger your family’s economic future just to save some money on the term insurance premium.
Ideas to help you buy the right term insurance plan
While purchasing a term insurance plan, it is suggested that you compare aspects, like the sum assured, tenure, entry age, riders, and most importantly, the insurers’ premiums. Doing this enables you to narrow down on a particular policy from a specific insurance company. However, it is indispensable to ensure that the insurer can honor the death benefits to your nominee in case of an untoward incident. For this purpose, you need to check the insurance company’s claim settlement ratio. Insurance companies that have a claim settlement ratio of 90% or more can be an ideal option, as the chances of the claim being honored are significantly high.
To sum it up
The term insurance premium may differ among insurers. As there is a rise in this cost, it is important to analyze the premiums offered by various insurance companies. Doing this lets you avail of a term plan, which is suitable as per your budget. Remember that it is better to be safe than sorry. Investing in a term plan will provide a safety net to your loved ones from life’s uncertainties. So, without any further delay, buy a term plan now!