Should I Go for A Short-Term Policy or A Long-Term Policy in My 30s?
Table of Contents
The 30s are the time when most people get married and have kids. During this age obligations often increase in different ways. You not only start thinking about ensuring the future of your children, but also about other financial obligations, such as home loans, car loans, and other long-term commitments. Your parents will now be relying on you, which adds to your financial expenses further. While your salary has risen dramatically since you began and is now stable, your standard of living has also improved, and your financial costs have also spiralled as a result.
Read More: Guide: Know About Different Types of Life Insurance Plans
Things To Consider While Purchasing Life Insurance Policy In Your 30s
It is challenging to choose the correct policy period. Too short - and the object of term insurance is defeated. Choose a period that is too long, and you will end up paying more premiums than you need to. However, you need term insurance in your 30s to protect the lifestyle and financial stability of your family. That means they can still afford the rent, school / college tuition, pay off the loans, and live a comfortable life if you are not there anymore.
Some key points to be considered while choosing term plans
Following are some of the key point that one must consider while choosing a term plan:
1. Policy Type
This is a time when you should consider buying a term plan so that even when you are not around the financial future of your family is secured. It would probably be better to opt for a term insurance plan with a monthly option for profits. Here, you can use the one-time lump sum payment to pay off debts, if any and the monthly payout take good care of the daily expenses of your family.
2. Age Factor
However, taking a longer-term life insurance plan is still advantageous because term plans get more costly as you grow in age. In addition, with age, the medical examination threshold is also set, which raises the likelihood of increasing-- your premium above the regular rates. Although certain insurers agree to renew term policies without a medical examination, they do not fully promise that the medical checks will be done away with.
3. Premium Frequency
Then comes the premium payment frequency. These days, term plans allow you to pay the premiums on a monthly, quarterly or yearly basis. You can also give a standing instruction to your bank for periodic deduction from your account for premium payment. There are also plans available that allow you to pay a one-time premium for your policy. What you need depends upon your cash flow and nature of work.
4. Insurance Company
Finally, often consider the efficiency of the insurer before deciding on your insurance provider. You can quickly look up the claim settlement ratio of the insurance firm, which is a measure of how much the company accepts or denies the claims that it receives. Insurance providers also announce their normal processing times, which can also assist you to determine which service provider is better.
Check:
How to Buy A Life Insurance Policy Online?
What Are Different Life Insurance Plans in India?
Conclusion
One of the easiest and most reliable kinds of life insurance is term life insurance. That is why it is perfect for most individuals who want an insurance policy that will cover their loved ones financially if they die suddenly.
