This Plan is Affordable But Do You Think You Have the Eligibility to Buy This?
By Space Coast Daily // April 25, 2021
Do you have a basic idea of what life insurance is? If not, then we must say that you have reached the right destination.
Let’s start by digging some important information on the term life insurance.
Every single person wishes to have a healthy and secure life, but they usually fail to correlate financial security with happiness.
You can choose to have a life insurance plan, as there are various benefits involved with it. You can decide to have the term insurance policy for as long as you want it to last, along with the coverage amount. It also provides death benefits to appointed beneficiaries after your demise. Even if you are not the sole earning member but the contributing person, it becomes your responsibility to take certified actions regarding the financial security of your family.
Many people think that they can easily buy life insurance. But it is not true. There are certain eligibility criteria for buying the policy. Those people who fulfil the criteria can only be liable for buying life insurance.
Types of life insurance
There are generally two types of policies, namely: The Term Life Insurance and Whole Life Insurance. While buying the policy, people might get confused about which one to buy.
■ Term Life insurance: This insurance policy is most common and popular because of its price and benefits. It usually expires within a term period set once you have paid the most important financial obligations such as raising kids, mortgage, and college tuition. Term life insurance always provides protection.
■ Whole-Life insurance: Whole-life insurance is comparatively costlier than term life insurance. This life insurance is eternal and consists of cash value components. It does not expire. In contrast, it doesn’t offer any sort of advantages because of the extra cost involved. Perhaps, it is beneficial in many complex financial situations.
Apart from these life insurance plans, there are other permanent life insurance plans, including:
■ life insurance
■ Universal life insurance
■ Final expense life insurance
Eligibility Criteria for life insurance policies:
Various factors should be considered while buying a term insurance plan. Different insurance companies offer different insurance options. All of them consist of varied eligibility criteria. The pension plans for life insurance offered by the Canara HSBC Oriental Bank of Commerce Life Insurance are also amazing. In this article, we will look upon some important factors for getting the best life insurance plan:
Documents: There are some specific documents that an applicant must have to buy the plan. If you are willing to buy the term insurance online, you also have the option of uploading the required documents online. But, if you are getting it on an offline basis, you must submit them in the office or courier them based on your preferences. Following are the documents required:
■ Passport size photographs
■ Address proof (driving license, aadhar card, pan card)
■ Birth certificate
■ Photo identity card
■ Income proof (payslips, bank statements)
Age criteria: The minimum age required to buy the policy is 18 years, and the maximum age is up to 60 years. Generally, it is advised that people who are in their 30s and have started working are perfect for buying the term insurance plan as they do not have any financial burden. It helps them in securing their future post-retirement and also renders them the tax benefits. Other people who are eligible for term insurance plan are :
The senior citizens are eligible for buying the plan as it can cater to their fulfilled needs. Also, they can fulfil their children’s dreams during their retirement.
People who have been married recently can buy the plan to have a secured family. Also, they could choose a joint life insurance policy that could assure the safety of the surviving spouse in case of any miss-happening to one of them.
If you are willing to start a family or the ones who already have kids can also buy the plan. This could fulfil the expenses of your children if any unfortunate mishappening takes place.
Citizenship: An Indian citizen can only avail of the opportunity to buy a life insurance policy. There are certain terms and conditions of coverage that come with the insurance plan that avails outside India. Since a new rule has been introduced by the Central Government of India, it states that the NRIs and the PIOs can also take the term insurance policy.
Smokers: Since smokers are prone to significant health issues and need more coverage for risk than nonsmokers, the term insurance premium will eventually be greater for smokers rather than nonsmokers. There are various categories of smokers based on health factors. There are high premiums charged by smokers. The frequency of tobacco that you use along with the method can determine the best-suited term insurance company for smokers. It is advised to always speak the truth about your smoking habit, as you will also have a medical exam that will clear out not only about your smoking habits but also about how frequently you smoke.
Annual income: The annual income is one of the most important factors that can decide the eligibility of buying a life insurance plan. Your current income is life insurance coverage. If a policy provides a cover of up to Rs 2 crore, then it will be very difficult to choose the policy if your current income is only Rs 10 lakhs per annum. Along with it, your goals should be defined appropriately as it plays a major role in deciding on the amount of coverage.
It is essential to have a life insurance plan or a term insurance plan as they offer various advantages such as wealth creation, financial independence, relieve stress, provide tax benefits, and help save more money. Thus, insurance plans can only be brought up by those individuals who completely fit the above-mentioned criteria. There can not be any negotiation in terms of buying a life insurance plan. Shop around and do your research. Also, the early you buy, the more benefits you get.