Any financial expert will suggest you that April is the best time to compare term plan, buy a term insurance policy and how much to invest in insurance. It is important that you buy a term insurance plan as soon as you think that you need a policy. However many tend to delay the purchase and wait to buy the policy. This means that many tend to delay the purchase till the last minute because either they do not get the time to make the purchase or do not understand the policy terms and clauses. Some also get very confused on what term insurance plan one should buy.
If truth be told that you can compare and buy the term insurance plans at anytime of the year. But it is April that most prefer to buy their term insurance policy, because it is also the start of the financial year and at this time people want to reassess their plans to build their finances and have a good portfolio. April is also the time of the year when employees get their annual bonus. Also many of them plan to readjust their sum assured in the term insurance policy that they already have.
Why Should You Buy Compare Term Plan The Term Insurance Policy In The Month Of April
Many Indians tend to make the purchases of financial instruments towards the end of the financial year. In fact ask any insurance company and they would tell you that the maximum number of buyers come in the last three months before the financial year ends. The maximum sale happens in the month of March when people suddenly realize the need to invest their money in order to save on the taxes. The main aim of buying the term insurance plan at this time of the year is to save on the taxes. This is a bad way to invest though people overlook the protection and only focus on the tax saving benefit of buying a term insurance plan.
April however is a different time of the year. The peak time is already over for them and this is considered to be the lean month. This is the time when the sales agents have plenty of time to answer to your queries and you too have the time as well as cash liquidity to know what the best available option to invest your money into is.
There are some companies that offer bonuses to the employees at the start of the year. This leaves them wilt lots of money in hand and this lets the investor make an informed decision to compare term plan buy the policy.
How Do You Buy The Right Insurance Policy For Yourself
Term life insurance calculator has not been the first choice for many compare term plan. This is because most of them think that the term plan is a waste of money because it does not create any sort of an investment. The money is thought to get wasted. But this is something that one needs to understand.
A term insurance plan is a pure insurance plan and thus offers pure risk cover. This means that there is no investment or wealth creation attached to this plan. However the benefit of investing into a term insurance plan is that you get a high sum assured value for a very low premium amount. This is important because one needs that their family is protected when they are not around. And the insurance term plan gives them that peace of mind.
Make sure that when you buy a term insurance policy, compare the plan so that you get a coverage which is at least 10 times more than the annual income. You also need to consider the inflation and the expenses when you buy the term insurance plan. So in case if you have liabilities, then that needs to be included in the term insurance coverage as well. You also need to include the debts that you will have to pay.
When you buy term insurance plan first decide that how much coverage do you need as per your family expenditure.
It is important that you buy a term insurance policy that covers you till your retirement age. There are also some special kinds of policies that could cover you for 100 years. Towards the age of 60 you would already have covered your liabilities and would not have much to pay for. Also you are settled by now.
Buying Riders With The Term Insurance Policy – Compare Term Plan
Many of them wonder if they should even buy riders with the term insurance policy. There are many riders that your agent will be selling you. This includes critical illness cover and accidental death benefit to name a few.
There are additional benefits that people opt for with the pure term insurance plan. This is something that lets the policyholder customize this life insurance plan.
April is a suitable time when you can review your insurance plan and also check if you need any additional coverage. You could either choose to stay with the same amount of coverage or increase the coverage amount.
The Best Time To Buy Is In The Month Of April
April is the best time when you should consider your term insurance policy. A term insurance plan is something that you should have and with so much uncertainty around it is absolutely foolish to not buy a term insurance plan.
In a term insurance plan how much coverage required, you pay a premium amount to the insurance company and get protection for a fixed amount of time. This is the tenure of the insurance policy. In case the policyholder dies within the term plan period then his nominees will get the sum assured amount which is known as the death benefit. The sum assured amount is a lump sum amount that will help the family financially.
The benefits of buying a term insurance plan are known to many. But why is April the preferred month of the year to buy the term insurance plan?
Keep Your Family Secured Financially
If you are looking for a product that is there to keep your family sound financially after your death then term insurance plan is the best choice for you. It is indeed the best investment instrument that offers your family a lot of support when you are not there. There are huge numbers of policies that you can buy from and these are also tailor made to suit the individual requirements.
When you are thinking about the right time to buy a term insurance policy then April is the month. This is because you are able to reap better benefits when you invest in a plan early. Also many of them will tell you that you need a term insurance plan only after reaching the age of 35 but that is not right.
The best time to buy a term insurance policy is as early as you can. If you buy a term insurance plan when you are young then you pay lesser premium for a higher amount of coverage. It is important that you thus buy the term insurance plan very early in life.
You have less number of diseases when you are young and the more you grow old you are prone to diseases that will cause the premium amount to rise.
Invest Into The Term Insurance Plan As Early As You Can
There are many phases when someone would invest into a term insurance plan. Here is a breakup of the likely life phases and how it could affect your selection.
- When you are unmarried in your early twenties
When you are in your twenties, you are earning and are an additional income to your family. You have less expense and this is the time to prepare for your future. When you buy term insurance at this stage of your life then this makes it very affordable and it also helps you to save on tax. This is the right time that you should buy a term plan because the premium charged to you is also less.
- Late twenties when you are married
This is an important chapter of your life as you are married and now someone is dependent on you. This is the time when you need to create a sound backing for your family you need to ensure that you increase the coverage of your term plan if you already have one.
- Child in the family
This is when your responsibilities will grow manifold about how much life cover do I need now. There is a lot of expense involved in a child’s education and extracurricular etc. You also need to make sure that your child’s life is secured. Your family needs to be secured financially when you are not there anymore. This is in addition to the long term debt that you have. Thus you need a higher protection at this stage of your life.
- Retirement planning
How much life cover do I need now? This is indeed not the time when you should be buying a term insurance policy. This is the time when you should invest into some pension plans. It is important however that you consider your premature death and how your family will be protected financially when you are not there.
Conclusion – How Much Term Insurance Should I Buy
A term insurance plan is a must in your portfolio. Calculate your needs and expenses and buy a suitable plan by keeping above things in mind. April is the time when you will be having more of free cash and thus you should consider putting this amount into a term plan or to increase/decrease the coverage of your term insurance plan.
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