Am I Eligible To Purchase A Term Insurance Plan?

A term insurance plan is one of the most beneficial investments a person can make to meet all their emergency monetary requirements. There are numerous options of term life insurance policies that you can choose to suffice your obligations along with receiving multiple added advantages. It is always recommended that before choosing any term life insurance, you must carefully read all its details and how it operates. Furthermore, you must also be aware of the term insurance eligibility criteria to make the selection process more convenient and easier.

The policyholder remits the insurance premium to the insurance company for providing him with the term coverage. If any unexpected misfortune takes place during the tenure of the policy, the insurance company is liable to pay the sum assured to the policyholder's nominees.

Basic Criteria For Term Insurance Policies

Before choosing the desired term insurance plan, it is essential to validate that you meet and fulfil all the eligibility criteria that are required to avail the plan. The term insurance eligibility criteria can differ based on the insurance type and the insurance company.

Here are a few standard criteria that remain constant everywhere for getting the best term plan.

1. Citizenship

The person availing the term insurance policy should be a citizen of India. However, nowadays, PIOs and NRIs can also take a term insurance policy rendered in the country.

2. Medical Checkup

It is compulsory for the person insured to undergo a medical test in most of the cases before taking a life insurance policy. Taking a medical test assists the insurance company to remain informed regarding any medical contingencies and the risk factors. This decides the premium sum the person taking the policy will be asked to pay.

3. Smokers

The term insurance premium for the person who smokes will always be greater than non-smokers because they are more prone to significant health perils and hence require more risk cover.

4. Documents

For completion of the application of a term insurance policy, The policyholder must present all the needed documents.

Who Can Buy Term Life Insurance Plans?

The eligibility standards for term life insurance plans are pretty comprehensive. That is due to the fact that these policies are intended to fulfil the life insurance requirements of several types of individuals and families. Mentioned below is the list of individuals who can buy and enjoy the benefits of the best term plan.

1. Young People At '30s

Term life insurance policies significantly benefit individuals who have just started working and don't have an extensive financial burden. Taking a term life insurance at an early age renders tax advantages, and you can begin securing and devising for your post-retirement days.

2. Newlywed Couples

Individuals who have recently got married can also take term life insurance to secure the family they are going to start. The couples can further opt for a joint life insurance policy to assure that the surviving spouse is secured if any unfortunate mishap happens to one of them.

3. Parents

Individuals who have kids or people who are intending to become parents in future can also buy a term insurance policy, especially when they are the only breadwinner of the family. This term life insurance plan will assure that, in case of your ill-fated demise, the expenses of your children are fulfilled properly.

4. Senior Citizens

There is a common myth that taking a term life insurance at an old age is not worth it. However, if you want to support your children in fulfilling their dreams after retirement, then you must go for a term life insurance policy. A term life insurance can act as a retirement plan and will always assure that all your needs are met, and the goals of your children are also fulfilled.

Conclusion

The eligibility criteria for availing a term plan is extremely uncomplicated and can render a cost-effective form of insurance to people from all walks of life. Term life insurance policies hold numerous advantages. They are one of the most suitable investment alternatives that you can opt at any age to protect and safeguard your family and loved ones.

You may like to read - Understanding How A Term Insurance Plan Works?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.