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Questions You Should Ask Before Purchasing Term Insurance

Points that you need to keep in mind to ask the insurance agent even before you purchase the term life insurance policy. Questions such as the premium rate, the death benefit, the tenure of the policy and lots more.

Term insurance policies are relatively long term investments that must be made with utmost care. Before purchasing a term insurance plan, it is advisable to ask the following questions to ensure that you make an informed decision:

  1. Who is the seller?

    First things first, find out details about the company from which you are buying a term insurance policy. You must know the duration for which the company has been operating, how well it is rated, what are its offerings, etc. Find out how many agents work with the company, how good its claim settlement ratio is, and every other detail you can get your hands on. Choosing a reputed and trustworthy insurer is the first step to getting the most out of a term insurance policy, so do your homework before putting your money somewhere.

  2. How much insurance do I require?

    Once you have selected the company from which you will be purchasing a term insurance policy, you will then have to determine how much money you will be investing in the plan. Your sum assured will be determined by a number of factors. You will have to take into consideration things such as your age, your liabilities, your future financial needs, and inflation among other factors to figure out how much money you can invest without adversely affecting your current standard of living.

  3. How long will I have to stay insured for?

    After computing your sum assured, you will have to decide on the tenure of the term insurance plan you wish to purchase. Term insurance policies are sold for a specified number of years, so ask yourself how many years you can afford to pay premiums so as to receive benefits upon maturity. In most cases, the higher the tenure, the higher the returns. Consult with a professional insurance agent and calculate after taking into consideration your current salary and its expected growth in the years to come to determine how many years you can stay insured for.

  4. When is the best time to purchase a term insurance policy?

    The sooner you purchase a term insurance plan, the better. When insurance companies calculate the risk an individual brings to the company, younger investors are likely to receive better terms and conditions as they have fewer health problems and are also in a position to earn income for the entirety of the tenure of the policy. Purchasing a term insurance plan when you are relatively young is the best option, but if you haven’t purchased a policy yet, there is no need to worry as “better late than never” is a concept that applies to term insurance as well.

  5. What benefits can I expect from the policy?

    The benefits offered by one term insurance plan may vary from the next. Find out what are the advantages of purchasing one plan over the other. Ask your agent if the benefits you receive, be it on maturity or death of the policyholder, are they worth the premium payments and the sum assured? And then find out about the fees and charges associated with late payments, premature withdrawal, etc. Make sure that you go through all the features and benefits of a plan and understand them fully before purchasing term insurance.

  6. What are the implications of overdue premium?

    There may be situations wherein you may not be able to afford premium payments. Maybe you had too many expenses in one particular month, owing to which you could not pay your premium. What happens to your policy? This is one of the most crucial questions as uncertainty can arise at any time and make it difficult to pay your premiums on time. In such cases, most companies offer a grace period to make due premium payments, and failure to pay within the specified period results in a policy lapse, which must later be revived at an additional cost. Find out the implications of overdue premium payments before purchasing a policy as failure to do so has the potential to create serious complications later on.

  7. Will there be a change in policy term if I start smoking in the future?

    Although this is one of the unlikely questions asked by most people, it is important to ask your insurer if there will be a change in the terms of the policy should your start smoking or drinking or get into any habit that could lower your life expectancy. Most companies usually increase the premium amount for such customers as they would have entered a different risk pool, while some companies are known to terminate the policies of such customers immediately. Any such changes in habits must be brought to the attention of the insurer immediately as failure to do so could create problems at the time of making claims.

  8. Will the policy be valid even if death occurs outside India?

    Term insurance policies are considered valid regardless of where the death occurs. However, it is essential for the policyholder to communicate his exit from the country and that he / she resides in a different country. Most companies allow customers to migrate to other countries whilst ensuring that their term insurance policy is still in force. However, some companies defer the policy in case the customer is migrating to a nation that is regarded as unsafe, such as Somalia, Pakistan, etc.

  9. What kind of deaths are not covered by term insurance plans?

    Term insurance policies do not usually cover deaths caused due to natural calamities such as tsunamis or earthquakes, or even man-made calamities such as terrorist attacks. It is important to note that casualty in such cases will be very high and the insurance company won’t be able to settle claims as they may run into millions of rupees. Talk to the insurance agent and find out what kind of deaths are not covered by term insurance plans as doing so will ensure that your nominees will not be in for a surprise in the event of your untimely demise.

    Asking the aforementioned questions before purchasing a term insurance plan will ensure that you have invested wisely and that there will be no concerns at the time of making claims.

Questions You Should Ask Before Purchasing Term Insurance Reviews

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  • Kotak Life Life Insurance
    "Excellent"
    0.5 4.5/5 "Excellent!"
    I am a employee of Kotak Life and have taken one policy for saving also company has provided me a policy. It is a long term policies. The tenure period is 15 years. I pay the premium of 18K yearly through online or sometimes cash. The online app is good and the transactions are done immediately.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 23, 2019
  • Birla Sun Life Insurance
    "Excellent service"
    0.5 5.0/5 "Blown Away!"
    I have applied my life insurance with birla life, there agent was good, they have explained me clearly about the policy benefit, and there coverage, and the premium amount they have charged me was nominal, it was on yearly basis , and i use to pay premium through on line.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 23, 2019
  • HDFC Life Life Insurance
    "Good service"
    0.5 4.0/5 "Great!"
    I have been holding my life insurance with HDFC LIFE from long time, and I itself have applied for this insurance is i have knowledge regarding this,and there premium amount they have given me was nominal ,i use to pay up to 3500 as an premium on yearly basis,and there is no hidden charged , and i pay premium through on line.
    Was this review helpful? 0
    , jaipur
    Reviewed on Jan 23, 2019
  • ICICI Prudential Life Insurance
    "Good service"
    0.5 4.0/5 "Great!"
    I have been holding my life insurance with ICICI prudential ,i took this insurance long bank , and i was agent and previously i was Ex -employee for them ,so i have knowledge about the insurance which insurance will be best ,and i pay premium on yearly basis, i use to pay through on line mode.
    Was this review helpful? 0
    , jaipur
    Reviewed on Jan 23, 2019
  • LIC Life Insurance
    "Good "
    0.5 4.5/5 "Excellent!"
    I have one LIC policy and its a term plan which was taken in the year of 2000 through an agent. I am happy with the service and the benefits are good. Am paying the premium of 25K per year through online. The sum assured value is 5L and I need to pay the premium till 2020.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 23, 2019
  • LIC Life Insurance
    "Not satisfied"
    0.5 3.0/5 "Satisfactory"
    I am having LIC policies and am using the service for more than 10 years. I only visit the branch and never contact the customer care center. I think its a money back policy and need to pay only once. I have paid the premium of 45K for 3 years through cheque. The benefits are below average.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 23, 2019
  • LIC Life Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    My life is insured with LIC from last 12 years and it is a money back policy. I get money back after every 5 years in this policy. I pay my premium once in 6 months and i am convenient with the payment options. Tenure period for this policy is after 30 years.
    Was this review helpful? 0
    , surat
    Reviewed on Jan 23, 2019
  • LIC Life Insurance
    "Best policy"
    0.5 5.0/5 "Blown Away!"
    I have a life insurance policy with LIC from last 15 years and it is a long term policy. My premium amount is auto debited from the salary account for this policy. I am happy with the returns and benefits of this policy. This policy will get matured at 2028.
    Was this review helpful? 0
    , pune
    Reviewed on Jan 23, 2019
  • LIC Life Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    I have a life insurance policy with LIC from last 8 years and it is a money back policy. I get money back after every 5 years and this policy is for 20 years. I pay my premium on annual basis through online and i get good returns after maturity period.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 23, 2019
  • LIC Life Insurance
    "Good Policy"
    0.5 3.5/5 "Pretty good"
    I have taken Jeevan bheema from Lic as its been Government institution , so the assurance is there regarding the policy benefits , I used to get income tax benefits I make the payments through auto debit option overall am pretty much satisfied with the service and response. .
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 23, 2019
  • LIC Life Insurance
    "Good Policy"
    0.5 3.5/5 "Pretty good"
    I took this Life insurance Money back policy from Lic insurance company mainly because of the good returns, its long tenure period of 20 years , the payment can be done through only payments Quarterly . The best about the policy is claim rate is high compared to other policy available in the market. There customer service and customer response is good .
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 23, 2019
  • LIC Life Insurance
    "Good Policy"
    0.5 3.5/5 "Pretty good"
    I took life insurance jeevan saral policy from life corporation of India . I already paid for few years . As the policy coverage of good sum assures amount , which was my first policy at my initial stage . It has good benefits like accidental coverage and critical illness coverage . The tenure period is 25 years . Overall am satisfied with my policy
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 23, 2019
  • LIC Life Insurance
    "Good Policy"
    0.5 3.5/5 "Pretty good"
    I took this life insurance jeevan anand policy from Lic insurance company mainly because of the good returns. The tenure period is 20 where i already made the payment for first 2 yeairs . Am doing my payment yearly through online banking this policy covers accidental benefits and critical illness .
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 23, 2019
  • LIC Life Insurance
    "Good service"
    0.5 4.0/5 "Great!"
    I have been using my life insurance with Life insurance corporation of India, there service is good, the agent had explain me about the policy coverage,and about plan benefits clearly, and the premium amount they have charged me on yearly basis, and they have charged me up to 3000 it is nominal , and premium amount i use to pay through on line.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 22, 2019
  • Birla Sun Life Insurance
    "Good service"
    0.5 4.0/5 "Great!"
    I have been using my life insurance with Aditya birla , there service is they provide me was excellent, till now i have not face any issue in that, there premium amount they have charged me in monthly basis,they have charged me up to 6200, and it is nominal to me , the agent had explain me about the policy coverage and plan benefit properly,i use to pay on on line mode. overall service is good.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 22, 2019
  • LIC Life Insurance
    "Good policy"
    0.5 5.0/5 "Blown Away!"
    I have purchased my money back policy long bank and twice i have received the cash in my account without giving any request and I'm quite happy about the received sum assured amount. I pay the premium amount of Rs. 600 every month. I make the premium through online.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 22, 2019
  • LIC Life Insurance
    "Good policy"
    0.5 5.0/5 "Blown Away!"
    Bought my life insurance policy from LIC. I have chosen the plan called Jeevan Anand. This is the tax benefits policy. I pay the premium amount of Rs. 1000 every month with the tenure period of 2.5 lakhs. This is a 15 years tenure period policy.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 22, 2019
  • LIC Life Insurance
    "Good policy"
    0.5 5.0/5 "Blown Away!"
    I have bought the life insurance policy in the year of 2011. My agent has suggested me about this policy. I have been paying the premium amount of Rs.10300 through ECS. I have chosen the mode of annually. Overall, I'm satisfied with the LIC policy.
    Was this review helpful? 0
    , ahmedabad
    Reviewed on Jan 22, 2019
  • LIC Life Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    Purchased my money back from LIC. I have selected the LIC company for my policy its because of the better option. They are providing various payment mode facilities. I'm satisfied with the sum assured amount and LIC customer care service is really fine.
    Was this review helpful? 0
    , indore
    Reviewed on Jan 22, 2019
  • Kotak Life Life Insurance
    "Good Insurance Policy"
    0.5 4.0/5 "Great!"
    I have purchased a accidental covered policy from Kotak Mahindra bank. Kotak gives more online services and the app is really good. I have got this policy 5 months back. I made a premium amount of Rs. 1200 and this policy covers only for me. I have not claimed anything in this policy so far.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 22, 2019
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