Whether you want to invest in an insurance tool or a policy that will secure your life, there are many important reasons why you should get a term insurance. Be the smart one, think ahead and start early.

Read on to know some important things before choosing your term plan.


Apart from being an average person’s tool for tax benefits, there are many other benefits of investing in a life insurance policy. For one: medical coverage. Insurance cover for health emergencies is becoming an important aspect of term insurance policies these days. People are beginning to understand the importance of health and the impact of its growing costs in the times to come.

You can also think of your life insurance as a retirement plan. If you survive your tenure, the money you saved could help you put together a great retirement plan or maybe even the hillside café you always dreamt of running!


Especially in India, we sometimes come around this question- whether to trust in God’s plan for our life or to simply go for a financial tool such as life insurance, which could safeguard my loved ones? There are still some people who consider discussing life insurance as a bad omen upon the life of the person in question. The truth is death is an eventuality we won’t escape. We could, however, escape the pain and suffering that comes to our loved ones because of it.

Experts believe that it is better to start early in case of a term insurance plan. The earlier you start, the longer would be your investment term and hence a bigger policy amount.

Research has proved that it is ideal to invest in a term insurance program during high economic growth. The Spectator Index data states that GDP (PPP) growth rate since 2012 has been highest in the world for India. Currently at 7.1%, our GDP is going strong, and it seems like a promising plan to invest in a term plan!


To begin with, it is ideal to start with investing 5-10 % of the annual income in a combination of products that provide pure protection as well as savings or wealth creation.

While term insurance policies are relatively cheaper, diversifying your investment with ULIPs is also a great option. Another very important thing- Do not get lured by tax benefits. While a smaller premium with tax benefits might seem like a good deal, there are many basic costs that are not covered. These prove to be very hefty during the time of an emergency.

Most importantly, read your policy documents online! Here are a few handy questions that must be answered before you buy your policy:

  • Is return guaranteed? If yes, then how much?
  • What is the lock-in period? (lock in means the minimum time before which you cannot withdraw your money from the policy)
  • Details of payment of premium, ex: In how many ways can the premium be spread out, etc.
  • What would the consequences of a default payment be?
  • Any hidden/ transactional charges
  • The procedures for revival of a dead policy
  • Can the policy be used as collateral security against a loan?

Online Platforms are really helpful platforms to compare various schemes that are going on in the market. But do give it time and good research. You wouldn’t want to make a decision before knowing all your options.


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