Guidelines While Buying Term Insurance
The minimum entry age for term insurance is 18 years and maximum 65 years. The minimum policy term is five years.
You can make your term insurance plan more comprehensive with add-on covers at minimal cost. An add-on cover or rider offers benefits over and above the basic policy. You can attach add-on covers to your term insurance plan. Some of the popular riders are critical illness cover, waiver of premium etc.
While buying term insurance policy, right amount of coverage is the key. If you are underinsured it will defeat the whole purpose of insurance and if you are over insured then you will be paying unnecessary premium. Ideally life cover should be at least ten times your annual income plus your other liabilities such as outstanding car insurance loan, home insurance loan, etc. Do not forget to take into account inflation while deciding amount of coverage.
Term insurance policy also comes with tax benefits. You can get tax benefit under section 80C of the Income Tax Act for the premium paid for term insurance. And you can also get tax benefit under 10(10D) of the Income Tax Act for the amount received as death benefit. Premium paid for critical illness benefit qualifies for tax benefit under section 80D.
So, there is no reason why you should not buy term insurance plan. Term insurance plans can be bought either offline or online. However, online term insurance plans are even more cheaper option as there is no intermediary and cost is passed on to policyholders.