Term insurance is a one-of-a-kind life insurance product that is available in the market. Term insurance provides coverage to the insured for a specific period. In addition, the term insurance provides the benefits of the coverage of the insurance to the nominee after an unfortunate demise of the policyholder.
Now, you may wonder, why is term insurance of any relevance to you?
Well, term insurance is the type of insurance policy that you can get for yourself if you want to secure your family’s well-being.
You can consider getting term insurance if:
- You are the sole breadwinner for your family.
- An excellent long-lasting gift for your spouse.
- You have your children & will need education support.
- As a young earner, you can get the best coverage at an affordable premium.
Here are the six factors that you should know to check if you are eligible for term insurance:
- Age of entry: If you are someone who is above the age of 18 years, then you are eligible to get term insurance for yourself. Additionally, buying term insurance at an early age or closer to the age of 18 will give you the advantage of getting a spectacular cover with a very affordable premium.
- Nationality: To buy term insurance from an insurance service provider in India, you need to be an Indian citizen. NRIs and POIs (persons of Indian origin) are also eligible to buy term insurance in India.
- Medical check: Any individual availing of term insurance needs to undergo a medical check. A medical examination of the insured or the potential customer allows the insurance service provider to realize what risks they are taking in order to provide the insured with the coverage they need. This will also allow them to determine the premium to be charged.
- Smoking: Smoking is a factor that determines your term insurance or any insurance feasibility. The premium for the term insurance is always higher for a smoker than a non-smoker as it is a well-known fact that smoking is injurious to health.
- Submit the relevant documents: In order to avail the term insurance you need, submitting the relevant documents is an important step. The papers will help the insurance service provider to determine the validity of the documents & as well as verify your identity proof. The documents are photo, identity & address proof, age proof & proof of income.
- Verify whether you meet all the above criteria for term insurance or not. Once you are eligible for the term insurance, you can go ahead with choosing the policy & the insurance service provider & even have the option to select and buy it online.
Buying term insurance provides you with a plethora of benefits, apart from providing you with the advantage of not thinking about your family’s future with regard to certain things. It also provides you with availing certain tax benefits. However, one needs to conduct thorough research before availing of term insurance.