Why Buy Term Insurance Despite Increase in Premiums

Why Buy Term Insurance Despite Increase in Premiums 1

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 among the most sought-after insurance policies available today, as they offer a substantial sum assured at an economical premium. Due to the ongoing situation, numerous insurance companies have increased the dividend for new term plans. Even though India’s premium of term insurance 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:

Because of COVID-19, numerous people have lost their lives in India as well as across the world. Besides this pandemic, India witnessed natural calamities, like cyclones, floods, and earthquakes, in 2020. As you do not know what lies ahead, you must safeguard your family’s monetary well-being by investing in a term insurance policy.

Insurance

  • 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 numerous insurance companies offer term insurance plans, selecting the right one can be daunting. Here, you can use a term plan calculator to compare the various features and premiums policies offer. Therefore, you can opt for an approach that can meet your requirements.

Is it wise to buy a term plan now?

Yes, you can purchase a term plan at the earliest. You’re mistaken if you think the premium will be lower once the COVID-19 scenario is controlled. 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 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 lets you narrow down a policy from a specific insurance company. However, ensuring that the insurer can honor your nominee’s death benefits is indispensable in case of any untoward incident. For this purpose, you need to check the insurance company’s claim settlement ratio. Insurance companies with a claim settlement ratio of 90% or more can be ideal, as the chances of the claim being honored are significantly high.

To sum it up

The term insurance premium may differ among insurers. With a rise in this cost, it is important to analyze various insurance companies premiums. Doing this lets you avail yourself of a term plan suitable to your budget. Remember that it is better to be safe than sorry. Investing in a term plan will provide a safety net for your loved ones from life’s uncertainties. So, without any further delay, buy a term plan now!

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