How to know the term plan you have bought is right for you?

With plenty of options available, identifying the correct term insurance plans is always a challenge. There is no doubt that an individual attempting to buy a term plan may at some point go wrong in his selection.

Ravi, a young man of 30 years of age, recently got married and is heading towards building a beautiful family with his wife. But at the same time, he also realized that he must own term insurance in order to give complete financial security to his family during any unforeseen situations, as he is very clear about the importance of having a term life plan.  

But the big challenge that Ravi has in his mind is determining that the plan he is choosing is the right one and will suit his expectations well. It is not only Ravi, but many people are in this dilemma. If you are the one like that, then believe you will get an answer for your confusion here.  

Common Questions to ask before you choose the term plans: 

Here are a few questions, which could help you clearly understand if you are choosing the right term insurance plan for you and your family. 

1.  How clear are you about Term insurance? The foremost question you need to ask yourself is what you understand about a term plan. Unfortunately, some people still do not have a clear or complete idea about the term life plan. This ultimately leads to a misunderstanding and finally selects a wrong plan that might go waste after a long effort. Therefore, to buy term insurance that suits your right, you need first to gain a clear idea about a term plan.
2. Buying term insurance online: You can, of course, buy a term plan online, but at the same time, you also need to ensure that you have gained all the essential information that you must know before you buy. Online sources can provide you with all the vital details of a term plan. It will also help you to compare various plans from different insurance companies. Therefore, you should ensure that all information you gathered about a plan is accurate and complete to choose the right one. 
3. What is covered and not? The next thing you need to become aware of when buying a term insurance plan is to understand what is covered under that plan. As different term plans offer various benefits and features. Therefore, you must understand what is all covered under the term plan you want to buy. 
4. Ensure if your life is still covered if you die outside India. This is certainly a big question that you need to consider while buying a term plan. Unfortunately, most insurance plans purchased within India might not cover your life when an unforeseen happens outside India. In this case, the premium you paid all these years and the efforts too might be of no use to your family. Therefore, you need to ensure that the plan you are going to buy in India will also cover your life outside India to gain its complete benefit. 
5. Is an NRI eligible to buy a term plan in India? This is another crucial question that you need to ask. Some term plans will not suit the NRIs, but at the same time, if you are paying income tax to the Indian government and you have proper residence proof in India, then you can buy a term plan in India. Therefore, try to ensure if you have chosen the right term plan that suits your profile. 
6. Changes in the premium you pay: Most term plans will have a stable premium amount payable throughout the term period. But some insurance plans might have the premium varying over a specific time period. If you have chosen any such plan, then you need to make sure that you can pay the premiums without any interruption in the future. This is because any interruption in the premium might lead to the lapse of your term plan. This might finally lead to no use at all. Therefore, you need to ensure that you have chosen the right term plan in terms of premium payment. 
7. If you outlive the term insurance tenure. Almost all the term plan will expire and will give you no benefit if you outlive its tenure. But still, if you want to continue with your term plan, even after it is over, then instead of buying a new term plan, you still have the option to extend its term period. However, ensure if such options are available in the plan you are choosing to buy. 
8. What tax benefits will you get? Usually, most of the term plans will offer you Income Tax Act, 1961 benefit. Therefore, you need to ensure if the plan you are buying will give you a tax benefit. 

Besides these above-said points to ensure if you have chosen the correct term plan, there are also many other factors that you need to consider. However, if a term plan can meet all your expectations without any compromises and can fulfill your premium payable, tenure, tax benefits, sum assured, and life cover, then undeniably, you have chosen the right one to secure your family. You can use the term insurance calculator on iiflinsurance.com to compare various term plans and make the right buying decision.