Buying a term plan is a long-term decision which needs to be taken methodically. It therefore becomes crucial that you do not miss out on any important factors. So, here is a list of Dos and Don’ts that will help you understand all the primary things that you need to do before you choose any particular plan. Find the list below and start ticking off.
Understand Your Requirements
Firstly, you must think and should be crystal clear about what are your major requirements, why you need to buy the plan and what are your expectations from the term insurance.
Research and Right Advice
You must research all the term life insurance possibilities and be cautious about taking advice. Moreover, you need to be careful and calculative when looking at information about the plans such as what are the premium payment options available, what the riders are, etc.
Careful with the Proposal Form
The proposal form for buying a term plan must be read cautiously and then filled up. You must ensure that the proposal form is filled with all the correct details and all questions are understood and answered properly. Moreover, you should go through the terms and conditions stated in the policy document thoroughly. Remember that there is a declaration about the initiation of the plan in the proposal form.
Make sure that you keep a separate copy of the signed proposal form and other declarations which you have stated in the proposal form. This is for your own record and can be beneficial for future reference.
Collect crucial information
Moreover, another vital to-do thing is you should have information about the pointers mentioned below:
- Fund Options
- Switching of funds
- Charges levied on the plan
- Other benefits that can be received like Surrender benefit, discontinuity of the policy, and partial withdrawal of the funds, etc.
Reputation of The Insurer
You should research about the reputation of the insurer whose term plan you are planning to buy. You must avoid buying term insurance from the companies who have a low claim settlement ratio or are involved in too many legal disputes.
Avoid Twisting of Information
You should not misstate any important information while filling the proposal form. Any wrong information can result in the rejection of your claim. Also, your paid premium will not be refunded.
Do Not Sign Blank Applications
You should never sign any blank application forms as it can create issues in the future.
Avoid Leaving Forms Unfinished
You should fill up your proposal form for the term plan yourself and should avoid leaving any column blank in the form.
Avoid Delays in Paying Premiums
You should avoid delaying premium payment for your plan as this can result in late premium fees.
A term plan is here to provide solutions to the uncertain situations of life. With its affordable life coverage and riders, term cover is one of the best solutions to all the uncertainties of life. You can even use a term insurance premium calculator to evaluate the nitty gritty of your plan.