Since childhood, most of us think or some even plan their dream wedding, how they would look on that day, how the decoration would be like etc.
But one should understand that going from “me” to “we” isn’t only about wedding decorations, planning honeymoons or having kids but it’s also about the responsibilities which you both have to handle.
Many think that their earnings are very decent and hence they don’t need any “third party support” but they should know that having an “extra option” is always good.
And here the “extra hand” is a life insurance policy, which surely provides a “secure financial future”.
Now, the question arises, should a newlywed consider term life insurance?
Well, the answer is, why not.
I mean, there is nothing negative in term life insurance and if the new family wants a secure financial future by spending a minimum amount, then definitely family should try term life insurance.
Why Term Life Insurance?
Before getting into why you must understand what is term life insurance?
Term Life Insurance is a life insurance, which doesn’t provide any cash value and only stands helpful if the insured person dies before maturity.
Now, let’s understand why Term Life Insurance is preferred for the newlyweds.
Term Life Insurance comes with several benefits and some of them are:
#1 Low Premiums –
The premiums of these types of life insurance are very low. If you have just started your career, then surely you wouldn’t want to keep much money for premiums and hence this comes as a great option for you.
If you have just started your career, then surely you wouldn’t want to keep much money for premiums and hence this comes as a great option for you.
#2 Huge Coverage –
Term Life Insurance can offer a huge coverage at very low premiums (depends on policy and company), which at the end ensures your family’s full financial security.
#3 Minimum Requirement
Taking a Term Life Insurance is very easy and you don’t have to worry about many things, the insurance agents can handle all those extra work.
However, it varies company to company, as there are several insurance companies which need proper documentation.
Choosing Term Life Insurance
Experts advise going for those policies which provide coverage at least 5-6 times your annual salary.
However, the calculation may change depending on your family’s condition, which includes health and debts.
Suppose, if your health condition is not so good, then obviously you should go for a higher coverage or you can also go for that policy which provides medical benefits.
Secondly, suppose you have several loans to pay but before finishing your debts, you met with an accident.
Here, the question arises, what your family would do after your death?
Well, the life insurance comes up as a savior and helps to pay all your family’s debts.
So, always count how much debt you have on your family before choosing the insurance plans.
Things To Keep In Mind Before Choosing Term Life Insurance:
- Your Term Life Insurance should cover enough amount which your partner would require after you.
- The coverage amount should count every little thing including the rental charges, utilities, debts etc.
- Also, count your children education and extracurricular-related expenses.
Choosing Insurance Company
Once you are done with calculating your coverage need, you would want to know which company provides policies with “no hidden conditions”.
And trust me, this step is as tough as the last one.
If you select a non-reputed company, you may end up getting nothing in your need. So always keep few things in your mind while choosing the insurance company.
Here are the few things which you always keen in your mind while choosing the insurance company:
#1 Company Rating
In today’s world, when everything is on the internet, check the company ratings. Also, read the user’s reviews and their experience.
One thing you should keep in mind that several companies pay these review agencies to show their positive sides only. Do not fall for this trap.
Don’t keep yourself only to single reviewing website, search in google. Find out every bad or good point about that company.
I personally start by searching the bad points or complaints written about the company by people.
#2 Talk to People About the Company
If you know some people who have used any company’s service, ask to them, ask about their experience.
In case, you have no known person, just try to get in contact with the people who have filed complaint or left bad or good reviews about the company.
Doing this would make your concept clear about the working and reliability of that company.
#3 Talk to the company officials/agents
If you are unable to find any person who has past experience with the company then the only option left with you is, talking to the company officials or the agents.
But make sure that you have understood every term and condition and do ask questions regarding the policy.