Three Factors Important to Discuss with Term Insurance Providers

Lack of product research is the main problem with a majority of people who are planning to buy the best term insurance India. Very often, these customers leave the buying decision to their insurance service provider, all that such customers do is to write out the cheque.

Most policyholders have been guilty of such behavior sooner or later; everyone knows the importance of engaging with the insurance agent.

Coverage requirements

Consider this point as starting point while purchasing the best term insurance India. Most insurance service providers give an insurance requirement analysis calculator online, which needs to fill up customer’s personal and professional information such as marital status, age, future expenses, current income, coverage expectations etc.

These calculators are easy to use and it is where the agent can help. A good insurance service provider will be able to calculate coverage requirements in a more comprehensive manner.

Check other insurance options

Ask agent to introduce the various types of term insurance plans available. Agents will then explain customers to the pros and cons of endowment plans, term insurance for whole life, and whole life plans and may be ULIP plans as well. While a term policy may be the plan of choice for the customer on a tight budget.

An endowment plan is better in case buyer is saving only for a future and ready to pay the higher premiums. This is an important factor because a well experienced agent has only a limited idea of customer’s financial requirements.

Chosen Term Insurance Advantages and Disadvantages

While selling a plan, agents often wax eloquent about the related advantages but hide the possible risks. But, insurance buyers always want to buy a plan which provides the more benefits as well as minimize the risk level. Therefore, even if customers had a discussion about the maturity benefits and sum assured, then also they need to go through some factors such as exclusions, surrender fees, duration of the free-look period, availability of add-on critical illness cove and personal accident riders and many more. As an insurance buyer, it is necessary to know the risks and benefits of the selected term insurance policy.

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