Term life insurance isn’t like the other insurance policies. Unlike other policies, a term life insurance plan does not give the policyholder a lump sum amount at the end of the maturity period.The sole purpose of buying an online term plan is to give the beneficiary of the policyholder a pre-decided amount of money in case of the policyholder’s death during the term. Hence, this isn’t the kind of insurance policy that can also be used as an investment opportunity. The only thing you invest in when you buy a term life insurance plan is your family’s future.However, buying a term life insurance plan can prove to be a daunting task if you don’t know the right questions to ask. Here is a list of a few questions you should ask before buying term life insurance.

  • What should be the duration of my term life insurance policy?

The answer to this question may vary from person to person. To begin with, the duration of your online term plan should depend on your age, health conditions, marital status, number of children, the status of your parents, and your retirement age. Insurance companies offer a duration from 5 years to 35 years. We would recommend that you choose a plan with a higher duration if you want to keep your premium to the minimum.

  • How much cover do I need?

This is another good question. As we mentioned earlier, the purpose of a term life insurance plan is to ensure that your family continues to live their life without any sort of financial burden. Again, the answer to this question will be different for everyone. You need to consider the monthly expense, educational expenses, loans and EMIs, and inflation. Your cover should roughly be 10-15 times your annual expense.

  • How many types of premium payment options are there?

Premium payment options include annual, half-yearly, quarterly, and monthly. Annual premium payments are often preferred because they are cheaper. But you should decide your payment method based on your income and expenses.

  • Do I need additional riders?

Riders offer additional cover for your online term plan at an extra cost. There are various riders like premium waiver riders, a disability rider, and so on. Choose only the riders that are useful to you.

  • Do I get tax benefits?

Yes! A term life insurance policy is eligible for a tax deduction. The premiums you pay and the death benefits your family collects are tax-free too.

These are some of the important questions you should ask while buying a term life insurance plan.

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