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Many people buy Term insurance for death cover and invest their savings in other avenues (such as MUTUAL FUND, PPF etc) to meet their income and capital requirements while they are alive. One requires to keep a few things in mind before buying a term insurance. A few basic points to be remembered are:

• The term insurance should be able to provide the family with the adequate income in case of an unfortunate death.
• The tenure of the term plan should cover the span that an individual intends to work. A term insurance should cover at least 60-65 years.

Some reasons why anyone should buy term insurance:

Low Premium - Since there is no investment element in the insured amount, the premium for all term plans are much lower than any other insurance plans. Any individual might have to pay only about one percent of his annual income to get a life cover. Since this element is not there in the insured amount, the premium for term insurance is less than that of other insurance policies. For example., A policy of 1 Crore would have a premium of only Rs 7500 per year.

Provides Financial Security - An untimely death is unfortunate and so are the financial liabilities that require to be borne by the family. To prevent such a situation from arising, it is a good idea to invest in a term plan that would take care of the financial needs of the family.

Highly Flexible - Flexibility is one of the major advantages of a term plan. You can select any online or offline plans for which health plans are not mandatory. You can also change the plan and customize a term plan as and when required.

Low Claim Rejection - When you buy any term plan, make sure you disclose correct facts about your health condition, finances, habits etc. As per the recent Insurance Regulatory and Development Authority (IRDA) mandate, no insurance company can claim that there has been a non-disclosure of facts after two years of the policy becoming effective.