Term plan: Take term plan immediately, these companies are considering to make premium expensive

Term Plan To Cost More: Getting life insurance is going to be expensive. Insurance companies are considering increasing the premium rates of term plans. Tata AIG Life and Birla Sunlife Insurance may increase term insurance premium this week. Whereas by the end of this month of Max Life, a decision can be taken to make the term plan expensive. Whereas Kotak Life Insurance has said that it is looking at increasing the term insurance premium rates and will soon apply to the insurance regulator IRDAI for approval of a new product.

In fact, insurance companies have been affected globally due to the pandemic and this has led to new valuations. In the last few months, due to the high number of claims, many insurance companies have increased the premium on term insurance products. ICICI Prudential Life and HDFC Life Insurance had increased the premium for their respective term plans in December 2021. After this Bajaj Allianz Life Insurance has also increased the premium of the term insurance plan by about 15%. Different insurance companies have increased the premium range by 10-30%.

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After the Korana crisis, the number of people buying term insurance plans has increased. The biggest reason for this is that in the absence of the insured, it provides large coverage to the family at a low premium. The decision to take term insurance should not be done in haste but after a lot of thought. We should assess whether we need a term policy or not. Maturity benefit is not available in this insurance, although it gives financial protection to the family after the death of the policy holder.

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What is a term policy?
First of all it is important to understand what is term policy. Term insurance provides coverage at a fixed payout rate for a limited period of time. If the policy holder dies during the term of the policy, the death benefit amount is paid to the nominee. It is very important to understand that term insurance is not an investment. After the death of the policy holder, his family gets the benefit.

Now we tell you what things should be kept in mind while taking a term policy.

You should take into account the source of income, current debts and liabilities, dependent family members, children’s higher education, their marriage, retirement, etc., while computing the sum assured. The term insurance cover should be at least 10 times your annual income.