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Sunday, January 10, 2016

BUY BIG TERM INSURANCE AT AN EARLY AGE

 Hard working and smart Mr. X died young,  in a road accident, leaving behind his hapless wife and two innocent children. He worked in a private company of Hyderabad where his wife was offered a job to make both ends meet, but she was too emotionally broken to live in a far away place.
 The whole family had to suffer unimaginable hardships after the sudden and tragic death of the sole earning member. The widow along with children began to live in a very pitiable condition; finally, the elder brother of the ill-fated lady had to bring them at his residence.  A significant term insurance policy of Mr. X would have avoided all these misfortunes.
Term insurance is damn cheap. One may get insurance of Rs 10000,000 for around Rs. 10,000 per annum at an early age. One has small salary initially, but the number of dependents is significant. Therefore, one can’t afford expensive insurance policies to protect all his dependents, and cheap term insurance policy becomes a natural choice.
 However, one must do due diligence in selecting a right insurance company. Here are some tips for choosing right term insurance product.
1. Compare premium rates of healthy and sound insurance companies on the internet.
2. Buy Online. The insurance companies have not to pay commission to their agents on their online business, so online policies are cheaper than policies sold by agents. There is also no chance at all of any manipulation in your application form by unscrupulous persons.(Please read my article- Pitfalls of buying insurance)
3. Don't opt costly riders. 
4. If you decide to purchase insurance from an insurance agent, select a full-time insurance agent. He will always be available to serve you. Persons, doing insurance for part time income, often throw the towel.
5. Reveal all facts honestly. Don't hide anything otherwise insurance company will reject the claim when your family members will need it most.
6. Buy separate policies for each dependent according to their requirements to avoid quarrel among them for insured amount.
7. Chose an insurance company having good claim settlement ratio.
8. Opt for monthly installments initially. Insurance companies do due diligence after taking the first premium. Your money remains blocked during their tardy procedure. FurtherYou will lose less in the case of online fraud.
9. The people above 50 years may also opt for accidental death insurance. Their premium is dirt cheap, and they don't ask medical test etc.

Your term/accidental insurance policy will protect your family members in any mishap that may happen to you and will also be easily affordable by you.
 We shower precious gifts to our nears and dears on marriage. Will it not be an excellent idea to gifthem a term insurance of Rs. 50 lacs or Rs. 1 crore?