Term Insurance Pay Your Policy


-> How much Sum Assured / cover should I take in a term plan

Deciding your sum assured amount depends on various factors. It varies on the number of dependents you have, your investment needs, affordability, the lifestyle you wish to provide to your family, and your children’s education. Trying to analyze your needs by adding survivors living expenses. Subtract it with the saleable investments that are already available. The difference that you arrive at is the required sum assured that you must take.

-> What should be the tenure of my plan

This needs to be done very calculatedly. If you feel you need to choose a policy with a tenure up to the age of 70-75 years, think about it! Will you really need it? You may fulfill all your financial goals by then. The tenure of plans differs from insurer to another based on several factors. Most plans have you covered until the age of 60 years and that is an ideal tenure.  Read your policy document carefully and be smart enough to understand the value of your policy and how it will benefit your family in case of death.

-> How much life cover should I buy in a Term plan

There is a common formula for understanding how much life cover you should buy in a term plan.

Minimum sum assured = Annual Income * 10 times + Loasn/Liabilities

Based on this formula, you can calculate your required life cover.

-> What will be the impact on the premium amount if my medicals show adverse results

There are numerous underwriting factors that play a vital role in determining an increase in premium. Some of them are aspects such as severity of health condition, changing family history, chosen term and life cover have an impact on your premium.