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How To Choose The Best Term Insurance?

Term insurance not only brings you money but also keeps your family safe

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Term insurance plans are deemed to be one of the best forms of life insurance because of the high cover they offer at affordable rates. For instance, a person who is 30 years old must pay just 700 or 800 bucks a month to cover one crore for 30 years. That’s like spending on watching one movie with friends. Although cost is the most important factor when considering buying insurance, it is, however, not the only factor. With that said, let’s try and go over a few other important deciding factors for buying term insurance policies.

The size of the cover

The size of the cover is one other most important deciding factor for buying insurance. If the insurance you buy does not assure sum that’s large enough to cover all expenses such as any basic expenses that you and your family may incur and other crucial expenses like those arising from your children’s education or marriage. One other thing to note here is that, not only should the term insurance policy cover your expenses, they should be able to cover your liabilities as well. Liabilities can be anything including debts and loans. Big borrowings such as home loans should also be covered.

Term Insurance
These instances include cover for the loss of employment, cover for a premium waiver, cover for permanent disability Pixabay

Cost considerations

The cost of the insurance is usually not very high, especially if you start at a very early age. In fact, for all those young buyers out there, the cost for covering an insurance of Rs. 1 Crore for themselves for 30 years from the date at which they buy will be no more than that of a soft drink. When considering the cost of insurance, one should also keep in mind their family’s and their own lifestyle and should envision how this lifestyle changes over the course of a few years.

With each different stage of life comes different responsibilities. For example, a person who is single may have very different responsibilities than the one who is married or one who has kids to care for. But most people would rather go for a vanilla term insurance which is not spiced up than one which would cover a little extra for them, such as an accidental death benefit.

This should not be the case, however. Especially if you have the means to buy that extra coverage. Many people may have heard that they could be covered by insurance for all those major, critical illnesses. This is not true. Health insurance covers only for hospitalization and doesn’t necessarily cover the medical expenses incurred for the treatment of major illnesses.

Term insurance
Your family members will be covered financially, in the case of your absence. Pixabay

Tips to choose the best term insurance plan

When buying life insurance, there are plenty to choose from. But the question is, how does one choose something that best befits his needs? It’s very simple in fact. There are some key factors you will need to consider before buying term insurance.

 

  • Value for human life

 

When you buy term insurance, you expect that you are covered for any major expenses that you tend to incur sometime in your life. Also, your family members will be covered financially, in the case of your absence. Therefore, the term insurance you choose must provide adequate cover. Else, it may not be worth your money. There is a term in insurance that’s used for this kind of thing, and it is called as value for human life.

The human life value or HLV is simply the individual’s income and his loans and liabilities put together. So, the term insurance you choose must have a high HLV, which is the basis of any term insurance.

 

  • Rider benefit

 

Those term insurances that are deemed to be the best are the ones that cover all aspects. Likewise, it would be an additional benefit for the said insured person, if the term insurance comes along with a rider. A rider is something that provides benefits in addition to the primary policy. For example, let’s say that the insured has a critical illness. Then, he can receive the sum assured, in addition to being diagnosed with the same.

Term insurance
Health insurance covers only for hospitalization and doesn’t necessarily cover the medical expenses incurred for the treatment of major illnesses. flickr

So, just as in that case, there are many such instances where riders can prove to be beneficial. These instances include cover for the loss of employment, cover for a premium waiver, cover for permanent disability, etc.

 

  • Cover enhancement

 

One of the main features that the term insurance should have is that it should be flexible for enhancement of coverage during those critical stages of the life of the policyholder. For example, the coverage could be enhanced as much as by 50 percent during the policy holder’s marriage or by 25 percent during the time the policyholder becomes a parent.

This not only allows the policyholder to start with a nominal cover but also allows them to increase the cover over time, as their responsibilities and their income increases.

 

 

  • Cover convenience

 

Among all the life insurances that are present out there, term life insurance is regarded as the best and most innovative. This is because, one, the premium extension rates have been reduced considerably. And two, buying the term insurance could have never been easier now thanks to the internet. Also, it is now possible to buy term insurance online, without having to go through various medical tests for term plan.

Also Read: Are Natural Disasters Covered Under Home Insurances?

Life is indeed very important. And if life is important to you, then ensuring your life with a term plan should be equally important. Term insurance not only brings you money but also keeps your family safe by making them stay financially afloat in case of your absence. However, you should always keep in mind that you should be extra careful when buying insurance and not succumb to peer pressure. This is because, if you are reckless in buying insurance, it could cost you big time later in your life.

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How To Save My Money Paid for Bike Insurance?

These are some of the best ways in which you can save money paid for your bike insurance.

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Car, insurance, Bike Insurance
It is you that has to explore different types of auto insurance companies. Pixabay

Many people are not aware of the different ways in which they can save money while buying bike insurance plans. The simple thing you need to do in this regard is to compare bike insurance plans from different service providers. As the competition in the market is very high, you can get a good deal from one of the companies. All you need is some patience and knowledge about choosing the best plans suited for your bike. In this article, you can find some interesting tips which will help you to reduce your bike insurance expenses in future.

Save money with third party insurance

  • Getting third party coverage can help you to save lots of money as this is very inexpensive when compared to all other plans. Even though the coverage offered in this plan is basic, it is more than enough for old vehicles.
Bike Insurance
Remember that the insurance policy can only compensate for the damages done and it cannot prevent the damage to your bike in any manner.
  • One significant thing you need to understand about bike insurance is that the maximum amount of coverage provided by the company depends on the market value of the bike.
  • The market value of the bike keeps depreciating every year and by the time you reach 7 or 8 years, it would have lost most of its value. In this situation, the maximum coverage offered by the insurance company for any damage will be very less.
  • At this point, it makes no sense to buy expensive comprehensive coverage and you can easily get away with a third party cover.
  • You can opt for third party mandatory cover in this case and get to save lots of money while buying bike insurance. If you have not made any claims in the previous years, you can get good discounts on the next renewal.
  • It is possible to get third party coverage on the next renewal even if you are currently having a comprehensive insurance plan. You can inform the service provider about this point and choose the inexpensive option at the time of insurance renewal.
Bike Insurance
Many people are not aware of this option and they choose the conventional single year policy for bike insurance. Pixabay

Save money on expensive repairs with comprehensive insurance

  • While choosing third party coverage can be a cost effective option for old vehicles, you need to choose comprehensive cover for new and expensive vehicles. Even though this is slightly expensive, it will help you save lots of money spent on repairs of the bike.
  • The comprehensive plans allow you to get complete protection for your expensive bike and you can even add various covers along with the regular plan. This will further enhance the security and you can get the best coverage for your bike in future.
  • Many people choose the theft cover and zero depreciation cover along with the comprehensive insurance plan. In this way, you will be eligible for complete compensation when any damage happens to your bike due to fire accidents or other natural disasters or road accidents. You can even claim compensation for loss of bike due to theft and this will help you to avoid many problems in future.
  • As there are many options available in comprehensive insurance plans, it makes sense to compare bike insurance plans before buying them from the market. In this way, you can easily choose the best option without any problems.
  • The cost of repairing the bike in the case of an accident will be very high for expensive bikes and you can completely avoid this expense by choosing the comprehensive insurance plan.

Bike Insurance

 

    Getting third party coverage can help you to save lots of money.

 

Get quotes from different companies

  • You should always make it a point to get the quotes for different plans before buying the bike insurance policy. Most people who do not compare bike insurance end up paying a lot of money for the insurance plans.
  • It is very easy to get quotes from different service providers when you choose the services of online aggregators. They have online portals that can be easily accessed to get the quotes from multiple companies.
  • The good thing about using such services is that there is no additional cost involved in this process and you can get quotes for free from any company in the market.
  • All you need to do is to submit your requirements about the plan and the portal will show you the filtered options based on your criteria. After this, you can request the quotes from the chosen plans and it will be sent to your email address.
  • Yet another option to get quotes from any source is to call the customer support team of the insurance service provider. They will help you in this regard and even explain all the details about the insurance policy before providing the quote for the policy.
  • Once you have complete information about the cost of every insurance plan, you can choose the suitable option that matches with your budget and other requirements.
Bike Insurance
Road accidents in India. Pixabay

Compare the features of various plans

  • It is not just enough to compare the rates of various insurance plans. You should also compare the features of every plan so that you understand the pros and cons of each policy. In this way, you can choose the most suited insurance policy for your bike and enjoy the best features in the long run.
  • When you compare bike insurance from different sources, make sure to notice the difference between the features of the policy. Carefully read the inclusions and exclusions in this regard and clarify all the doubts with the insurance company executives before buying the plan.
  • You can even consult an insurance advisor when you have to buy insurance for expensive vehicles as they will help you to understand the features of the plan and explain everything in a detailed manner.
  • Remember that one feature may be very good for a particular bike and it may not be suitable for another bike. In this situation, you have to carefully analyze your requirements and then choose the suitable plan based on its features and price.
  • Comparing different plans is easy and you can get complete information from online portals that specialize in providing such information.
AIR POLLUTION,Bike Insurance
Motorcycles and vehicles drive on a road while fog envelope the area (AP Photo/Muhammad Sajjad) (VOA)

Buy insurance online to save money

  • You can get good discount on the insurance policy when you buy them online. Even service providers encourage this practice as this reduces the requirement for manpower in their offices and saves them lots of money in the long run.
  • It is also convenient to buy insurance online as you can compare bike insurance and select the cheap and best option suited for your individual requirement.
  • You can even renew the plans in the same manner in future and avoid visiting the insurance office for all these simple tasks.
  • In this way, the paper work required is less and you will also be spending less money to buy insurance for your bike.

Choose multi-year plans for better discounts

  • Many people are not aware of this option and they choose the conventional single year policy for bike insurance. However, it is possible to buy the policy for multiple years at once and bike insurance companies will offer good discount in such cases.
  • In our country, the renewal rates for bike insurance is very less and many consumers do not renew the bike insurance plans on a regular basis. This means that the insurance companies have to spend large amount of money on advertising and spreading awareness about such policies.
Bike Insurance
If the added expense of a two-wheeler cover is worrying you, relax. Your bike insurance policy need not be expensive. pixabay
  • All these things can be reduced when the insurance companies are able to sell multi-year plans to the consumers. For this reason, they offer some discount for such policies.
  • Not only that, you can even get the premium locked for the entire duration of policy and this means that there will be no increase in premium even when you make claims in between the tenure.
  • All these results in lot of savings for the consumer in the long run and you can compare bike insurance plans that come with multi-year coverage.

Avoid claims for small repairs

You should not make the mistake of making claims for small damages as this can affect your tr