A term life insurance is a life insurance product that provides financial coverage to you and your family. In case of your untimely demise or critical illness, this will prove to be of great help to your family. And, buying a term life insurance plan makes you eligible for various benefits.
Among all the other services, one lucrative benefit is the flexibility regarding the premium payment and tenure that an individual gets. According to your custom requirements, you can easily choose a suitable premium amount and tenure.
Many people prefer not to extend the tenure of paying your premium amount beyond the age of 60 years. It will help if you get rid of paying all your premiums by then, such that you can comfortably sit back and have a source of regular income without any worries. You should also make a fair term insurance comparison to choose the best plan for yourself and your family.
Here's why you should pay your term insurance till the age of 60.
1. Pay in Your Working Years
While you're working, it's easy to pay out the premium amount. Like you prepare a rough budget for other expenditures at the start of every month, you can even set aside a certain amount to pay the premium.
In addition, when you extend your premium payment tenure to more than 60 years of your age, it may get difficult for you to pay the premium if you're retired from your work. It's wiser to get rid of all the premium payments at the right age, such that they do not seem to be a burden.
2. No Dependence On Family For Remaining Years
If you extend the tenure of premium payments of your term life insurance to more than 60 years of your age, your earning family members might have to pay the remaining amount. Because, at the age of 60, most employees get retired, and otherwise also, people do not remain physically active to earn as they are at their young age.
Therefore, to enjoy the benefits worry-free and independently, you should choose a premium payment tenure in a way such that you wind up all of them till you complete 60 years of your age.
3. No Financial Worries While Living A Retired Life
People opt to invest in a term life insurance plan to have a regular income source without any worries and financial coverage. And, if you'll have to make premium payments at that point in time, too, it'll not be less than any burden.
Hence, to live a tension-free retired life, it becomes vital to be relieved of all the financial burden before turning 60. After that, you can have a passive source of income and live a comfortable life.
Apart from all these things, there are many other things which you should consider.
What More To Consider While Availing A Term Life Insurance?
1. Choose The Right Insurer
While signing up for any insurance plan, you should make sure that you choose the right insurer. This includes considering the financial health and the claim settlement ratio of the insurer. The insurer with a reasonable settlement ratio should be selected, which means they have a good record of settling their clients' claims.
2. Determine The Coverage You Need
You should determine in advance the coverage you need. This will depend on the assets and other possessions that you have. You should not under-insure yourself because it might not solve the purpose. Experts suggest that the term life insurance should provide a death benefit of around 8-9 times your annual income.
3. Choose Suitable Add-ons
A term insurance plan provides basic financial coverage to you and your family. To cover critical illness and other aspects as well, you can choose for riders along with your basic term insurance plan. It'll give you an added advantage to secure your future.
4. Verification of Charges and Benefits
You should check all the charges attached to a life insurance policy. There are various charges like the administration charges, fund management charges, fund switching charges, rider charges, etc., which vary from insurer to insurer. These charges should be minimum. The insurer levying a minimum of these charges along with providing maximum benefits should be chosen.
5. Buy Insurance Online
It is beneficial to buy insurance online when compared to offline insurance. While buying an online term insurance policy, it is easy to make a comparison amongst different plans provided by various insurance providers. The premium amount that needs to be paid regularly is also comparatively less if you buy insurance online. Also, you can make premium payments via multiple modes that are secure to pay.
Therefore, to choose the best term life insurance plan, you should consider all these important factors. Always keep in mind that you should start at an early age with the investment process and wind up all your premium payments by 60 years of your age. After which, you can have a sheltered retirement.