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Even after increasing the premium in the new year, Term Insurance will remain a better solution for more coverage at less cost, know how to choose the right policy

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Even after increasing the premium in the new year, Term Insurance will remain a better solution for more coverage at less cost, know how to choose the right policy

Term Insurance Plan: Term insurance policy provides more coverage in less premium. However, no plan should be taken in haste.

Term Insurance Plan: Term insurance policy is becoming increasingly popular and the biggest reason is that it offers more coverage at a lower premium. If you want to buy a term insurance plan, then take it as soon as possible because according to experts its premium can become expensive soon. However, one should not take a term plan in a hurry due to the possibility of increasing the premium. Just like there are many things to be kept in mind while buying any other insurance policy, in the same way while buying a term insurance policy, there is information to be disclosed and some basic things have to be taken care of.

According to experts, the number of claims increased due to several reasons including Kovid-19 and due to this the insurance companies had to pay more money than expected. To compensate for this and the risk of new variants Omicron, insurance companies can increase the premium.

Term insurance premium is expected to increase in the new year, know the reason for this, would it be right to take a plan now?

Comparison of Term Insurance Plan is important

Different insurance companies have different term insurance plans. Hence, it is very important to make comparisons to choose the best term insurance based on your needs and suitability. While comparing these, comparisons should be made on the parameters of various aspects of the policy such as insurance coverage, age of maturity and claim settlement record etc.

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Avoid these mistakes while buying a plan

  • Incomplete disclosure: Disclose your complete medical history while buying a term insurance policy. Failure to do so may result in problems at the time of claim as the insurance company may reject the payment.
  • Choosing a Short Term Plan: Don’t make the mistake of buying a short term plan. For example, at the age of 30, if you choose a plan with a tenure of 10 years, then at the age of 40, you will have to buy the next plan for 10 years, which will be costly. Instead, at the age of 30, it would be better to buy a plan for 20 years.
  • Do not buy policy early: The sooner you buy a term insurance policy, the less premium you will have to pay. The older you get, the higher the premium you have to pay to buy a term insurance policy.
  • Choosing a plan based on premium: While choosing a term insurance plan, don’t just make the premium the criterion. Affordable plans may not include key riders.

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