The COVID-19 pandemic has increased uncertainty in people's lives, making it necessary to secure oneself financially by investing in an insurance policy. However, if an individual has more responsibilities, a term plan could be more beneficial for them. A term plan is different from traditional insurance plans as it only provides a benefit if the policyholder dies, leaving behind a substantial sum of money for their family.
When selecting a term plan, it is crucial to consider some important factors. Firstly, one should avoid taking a short-term plan as it may lead to higher premiums when the policy lapses. Secondly, it is imperative to disclose all relevant information regarding oneself and their family, as any concealment of information can lead to complications when making a claim.
Moreover, it is crucial to provide a complete medical history to the insurance company while buying a term policy. Any concealment of medical conditions can result in the rejection of the claim. Before buying a term plan, one should also research the company and check its claim settlement records. It is essential to ensure that the insurance company adheres to the standard guidelines.
Many people get attracted to low premium rates and end up making hasty decisions. However, it is essential to thoroughly analyze the company and its policies before buying a term plan. It is advisable to invest in a term plan for a more extended period and pay a higher premium, rather than selecting a short-term plan and risking higher premiums in the future.
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