Term insurance is a popular type of life insurance policy that offers a high sum assured at a pocket-friendly price. While selecting the term policy, it is essential to choose the right sum assured and tenure to make the most out of your plan.
The purpose of buying a term plan will be lost if you select a short policy tenure. However, if you purchase it for the long term, you will have to shell out an extra premium. If you want to ascertain your policy’s right tenure, then determine the remaining number of working years or your retirement age first. Besides this, you need to consider many other aspects beforeopting for the ideal term insurance policy tenure. We will discuss the distinct characteristics later over here. First, let us understand the period for term plans offered by insurers.
Insurers offer policy tenures of 10, 15, 20, 25, and 30 years, among other options. The tenure may vary from five years to 40 years, depending on your current age. It is up to you to decide the tenure of your policy. However, you need to take your family’s financial stability into consideration before finalizing the policy’s duration. Consider a term plan that can help your family to meet the household expenses and their long-term financial aspirations. So, it is advisable to select a period that can replace your income until your family becomes financially secure.
Factors to consider while selecting the term insurance duration
- Age
Your age plays an essential role while determining the tenure of your term insurance in India. It is wise to invest in such a plan during an early phase of life because the premium will be significantly low, and you will be to avail of life cover for a longer duration.
- Liabilities
If you have any debts, like housing loan, car loan, and personal loan, ensure that your life cover should be equal to or more than the total of your liabilities. Besides this, the policy tenure must beequivalent to or more than the remaining monthly installment of your liabilities. Do not burden your family with these outstanding financial obligations, especially when you are no longer around. Buy the right term insurance plan with asuitable tenure that can enable your family to live a stress-free and financially independent life. Also check– Renters insurance near me
- Financial goals
You need to take the various objectives of your family members into account while choosing a tenure. Some of these important milestones include your children’s education and their wedding, and buying a new house. Proper financial planning is required to accomplish these objectives. However, what if you are no longer around? How will your family achieve financial aspirations? In such a case it is necessary to safeguard your family’s future with an online term insurance plan. While considering the tenure of the term plan, it is advisable to correspond tothe policy’s duration with your family’s ambitions, so that they can meet the financial expenditure involved to achieve their goals.
- Duration
Investing early is the basic thumb rule that you should follow if you gain optimum benefits from your term policy. If you are considering purchasing online term insurance, ensure that you opt for a maximum tenure. For instance, if you are buying a term plan in your 30s, and if you think that you will need life coverage till you turn 60, still opt for a tenure that can help provide life coverage till the age of 70. It is because the financial aspirations of your loved ones can change over time. You will have to shell out additional money on the premium or the policy maybe unavailable if you plan to buy a new term insurance policy at the age of 60.
Term insurance is an indispensable investment. It can offer your family a high sum assured at a reasonable premium. So, without any further delay, go ahead and a term plan with an appropriate tenure.
