How to Increase Term Insurance Cover Amount
Our family is our biggest strength and we do every possible thing to keep our family safe. No matter how much we do for our family, it is never enough. If you are also among those who wish to keep your family financially secure even after their demise, then it is time you should consider term insurance. As a matter of fact, the kind of unprecedented time we are living in, taking extra measures for the future of our family is quite important. Buying a term insurance plan can be one of the best things that you can do for your family.
As you purchase a term insurance plan, you secure the future of your family even when you are not around anymore. The minimum entry age of the majority of the term insurance policy is 18 years, while the maximum varies from one policy to the other. Most of the policy enables you to pay for the plan until the age of 60 years and the coverage is usually up to 75 years. If you happen to pass away within the tenure of the term insurance policy, the beneficiary of the policy will get the sum assured.
Nevertheless, when you choose a particular coverage for your family, you need to keep certain things in mind. One of the most important things is the need of the family. No matter when you are buying the term insurance plan, you have to think 20 years ahead and the inflation. Something that you buy at INR 500 today will not cost you the same after 20 years from now. Therefore, the sum assured that you have calculated for your family today, might not be enough after 20 years. And, if you have already bought a term plan and want to increase the insurance cover amount, here are some tips for you.
Upgrading the cover by purchasing a new policy
One of the best ways to upgrade your cover is by purchasing a new policy. However, while you do so, you have to go through the entire documentation process and even undergo medical tests again. And if your age is more than 53 years and have some kind of health condition, upgrading the policy can be expensive for you. As a matter of fact, because of the health conditions, the possibility of upgrading the policy might not be possible. Buying a new policy can come with its share of challenges. The beneficiary has to go through the claim process twice and even has to submit documents for both the policies and keep on following up with the insurers. Let us not forget that the time when the beneficiary is doing all of these, he/she is also grieving your loss.
Choosing the increasing cover option
While you buy a term insurance plan, you can choose the feature of the increasing cover. With time, the cover amount will keep increasing till the time it reaches a maximum limit. There is absolutely no need of buying a new policy, undergoing medical tests, chances of getting rejected and even maintaining two policies. The policy will keep upgrading with time, and you do not have to intervene at all. Choosing the option for increasing cover comes with several benefits. Let us take a look at them:
- One premium: As you choose the increasing cover option, you will have a single policy, a single premium, and lesser hassles in life. You do not need to maintain documentation of two policies which can often be confusing.
- Automatic increase: In increasing covers, there is no need for new forms, declarations, documents, or medical tests. There are no additional terms and conditions that you would be required to sign in order to increase the sum assured. It happens automatically.
- No chances of rejection: You do not need to worry about paying extra premiums, and there is of course no chance of the policy getting rejected.
Are there various kinds of increasing covers?
There are certainly several types of increasing cover options available in the market; however, it totally depends on the insurer. On the basis of the percentage increases, you would be able to choose a cover that suits your needs.
If you want to get more information on the increase of term insurance cover, you can visit the website of IIFL. You will get a fair idea about it and can also compare the relevant insurance policies that suit your insurance needs.