Quick guide on buying term plans

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Quick guide on buying term plans
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• Today, the insurance market offers various types
  of insurance products and while you are
  completely aware of the importance of having one
  for yourself, it becomes difficult how to choose
  the best one. In this article, we will talk about
  term insurance plan, which gives you a number of
  benefits.

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What is term plan?

• A term plan is a type of insurance plan, which
  offers you coverage against the risk of losing
  life. As the term suggests, the policy is valid
  only for a particular term. After this period, it
  is up to the person to renew it or not.
• How is it different from life insurance plans?
• A term insurance plan is different from a normal
  life insurance plan in several ways. For example,
  it gets you a relatively large amount of coverage
  as compared to a general life insurance plan. The
  premium amount is less than half, in several
  cases. It is suitable for those who wish to have
  a large cover by paying a smaller amount of
  premium.

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• What is the downside?
• A term insurance plan is not an investment plan.
  The premium paid towards a term plan should
  rather be treated as expenditure. Unlike life
  insurance plans, you do not get any return on
  investment in insurance. This aspect is not
  exactly a downside because it is the way you look
  at it. The amount of coverage is huge and that is
  why, the amount paid towards premium is
  negligible.
• How to buy the best term insurance plan in India
• Before arriving at any decision of buying a term
  plan, you can visit web portals who offer free
  services of providing the term life insurance
  comparison. It is advisable to conduct some
  research on different term plans available in the
  market and then shortlist a few products.

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• After this stage of research and short listing,
  you can buy a term plan either through online
  mode or agent.
• It is observed that if you buy it online, you may
  get a larger coverage in the same amount of
  premium. Why? Because an term insurance plan
  company does not incur any major expenditure on
  the transaction and this cost benefit is passed
  on to a buyer. Also, the insurance company saves
  on agent commission.

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uide-buying-term-plans.html