Term insurance is the simplest and the most cost effective form of life insurance that provides financial protection to the family of the life insured in the event of his/her untimely death.

A pre-determined amount is provided to the family to take care of their financial obligations, such as:

• Outstanding loans, if any
• Children’s education
• Manage day-to-day expenses

This way, the family of the life insured remains financially protected even after his/her death. However, it is important to note that no benefit shall be paid if the life insured outlives the policy period.

While your policy term can be selected based on the nature of your work and your liabilities, it is recommended that you select a policy term that lasts until the age of 65 – 75 years.

Your current age is an important factor when it comes to selecting your policy term. If you’re opting for term insurance in your 20s, then choose a policy term of 40 years as financial responsibilities are bound to increase from this age onwards. Contrarily, if you’re opting for term insurance in your 50s, go for a policy term of 10-15 years as financial responsibilities reduce from this age onwards.

If death results from unnatural circumstances, investigations will be carried out and the claim will be rejected if the cause of death is ruled to be one of the exclusions under the policy. Some of the most common exclusions under term insurance are:

• Suicide within the first year of the policy term
• Drunk driving
• Consumption of drugs
• Engagement in criminal activities

Besides, death resulting from a pre-existing illness of which the insurer was not notified while issuing to the policy will not be covered.

You need the following documents while buying a term insurance plan:

• Age proof – PAN card, Voter ID card, Driving License, School/College Leaving Certificate
• Address proof – Utility bill, Passport, Ration Card, Electricity Bill
• Identity proof– Driving Licence, Voter ID card, PAN card
• Income proof – Salary slips of last 3 months, income tax returns of last 3 years, bank statement with last 3 months’ salary entries, Form 16
• Medical reports – If the insurance company has requested any

When you’re buying term insurance online, you can upload the attested copies of these documents.

Since investing in a term plan is a long-term activity, it is suggested that you must not select any random plan. No two products in the market are alike. Each of them will have different features, benefits, and costs. Also, the term plan chosen by your friend will not necessarily meet your requirements. So, do not make any hasty decisions. Consult an expert.

You can also consult OneInsure’s resident experts, who have an accurate and sharp understanding of the insurance market. Call us at 86-559-86-559 or write to us at support@oneinsure.com and we will be glad to assist you.