What is the best Term Life Insurance and how to choose the right plan?. It’s like asking “which is the best car or best shirt out there?”. Everyone will have a different answer. Similarly, when it comes to one’s financial life, one size do not fit all.
Then what should you be asking/searching for?. No medical exam life insurance.life insurance no medical exam no waiting period. whole life insurance no medical exam .term life insurance no medical exam. no medical exam life insurance for seniors guaranteed life insurance. whole life insurance no medical exam no health questions. These are the various question asked by the visitors, one thing one should understand without having a proper medical check up no insurance company is going to give best and genuine term life insurance. genuine in the sense it will be really difficult for your family your dependent to get the claim settlement
The logical question sequence of buying best term life insurance is this:.
1. Do I need Life Insurance right now or in my near future?
2. What kind?
3. For how long?
4. How much?
5. Are my existing policies(if any) sufficient? If not, what is the shortfall?
6. Now that I know what I need, which products from which companies can fulfil my requirements in the best way? Which among them is the lowest cost?
7. Am I currently eligible to buy it? At normal rates? If not, what can I do to become eligible?
8. Do I buy it directly from the company’s website to save costs? Or through an agent?
9. If I want to buy it directly, can I still get good advice to answer questions 1 to 7?
Here are some pointers to remember while buying a term insurance plan:-
Just buying a term insurance plan will not serve the purpose, having the right amount of coverage is the most crucial thing while purchasing a term insurance plan. This is because term insurance is meant to replace one’s income after he dies. To arrive at the right amount of coverage that one require one needs to add basic expenses that his family will incur, major expenses such as education and marriage of his children and liabilities such as home loan, car loan etc. If life cover is inadequate it defeats the whole purpose of insurance. Hence, look out for a term insurance plan that offers the amount of coverage that you require.
Along with coverage amount, it is also important term insurance plan should offer cover till you need it. Basically, a term insurance policy should cover a person until the age he intends to work. Hence, don’t take a short-term cover of 15-20 years that ends when you are in your 40s. Choose a term insurance plan that offers cover till you require it.
The amount that you may think sufficient might not be enough after few years. Therefore, some companies offer plans where the cover increases by 5-10 % every year or indexed to inflation. As your sum insured increase automatically in coming years, it will take care of the increase in your income as well as inflation. Some insurance companies also offer a plan that allows policyholders to increase the sum insured in certain stages of their life.
Claim settlement ratio
While buying a term insurance plan is very important to check claim settlement of insurance companies. This is important because your nominees will have to contact the insurance company to get the claim. Hence, choose an insurance company that have good claim settlement ratio and claim procedure is hassle free.
Before purchasing any insurance plan it is very important to go through what are the exclusions of the policy.
Go for term insurance plans that have lowest charges as this will lead to lower premiums for the same cover.
You can make your term insurance plan more comprehensive with add-on covers at minimal cost. An add-on cover or rider offers benefits over and above the basic policy. You can attach add-on covers to your term insurance plan. Some of the popular riders are critical illness cover, waiver of premium etc.
The Internet has made buying term insurance plans very less time-consuming and convenient. And online term insurance plans are also a cheaper option as there is no intermediary and cost is passed on to policyholders.
When you buy any kind of life insurance policy (term/endowment / ulip) etc, there is typically to important parts of the underwriting process:
a) Financial Underwriting – Here the assessment is done based on the individual’s age, profile and income as to what is the maximum cover he can get on his life and how much you should get for the proposed policy.
b) Medical Underwriting – They basically assess if the health of the individual is attuned to the person at his age.
Once the company assess your financial condition they have rules of maximum cover someone can take, typically a factor of 20X of your annual income is considered. Therefore the company would reduce the amount of cover it will give you from that amount.
I am earning Rs. 10L per year and have an existing cover of Rs. 20L. I may still be able to get a cover of around 1.8 crores more.
Now, this factor of 20X gets reduced with age, as your future incomes may not be as large as a younger person.