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How to Buy Term Insurance: Complete Guide

7 Simple Steps to Secure Your Family's Future

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💰 Quick Coverage Calculator

Rule of Thumb: Your term insurance coverage should be at least 10-15 times your annual income

Example: ₹10 Lakhs income = ₹1-1.5 Crores coverage needed

1

Calculate Your Coverage Needs

Determine the exact amount your family would need to maintain their lifestyle and achieve financial goals in your absence.

Consider These Factors:

  • Outstanding home/car/personal loans
  • Children's education expenses (school + college)
  • Daily living expenses for 20+ years
  • Medical and emergency funds
  • Retirement corpus for spouse
  • Other financial goals and liabilities
2

Choose the Right Policy Term

Select a policy duration that covers your income-generating years and major financial responsibilities.

Term Selection Guide:

  • Age 25-35: 30-35 years term recommended
  • Age 36-45: 20-25 years term recommended
  • Age 46-55: 10-15 years term recommended
  • Cover till your retirement age or till children become independent
3

Compare Plans from Multiple Insurers

Research and compare term plans based on premium rates, claim settlement ratio, and policy features.

Comparison Parameters:

  • Premium amount for same coverage
  • Claim settlement ratio (aim for 95%+)
  • Policy exclusions and waiting periods
  • Additional riders available
  • Company reputation and service quality
4

Check Eligibility & Requirements

Ensure you meet the age, income, and health criteria of your chosen insurance plan.

Common Eligibility Criteria:

  • Age: Usually 18-65 years
  • Income: Minimum annual income requirements
  • Health: Medical tests may be required
  • Occupation: Some high-risk jobs may have restrictions
5

Fill the Application Form Accurately

Provide complete and truthful information about your personal details, health history, and lifestyle habits.

Important Notes:

  • Never hide or misrepresent health information
  • Disclose smoking/alcohol habits honestly
  • Provide accurate income details
  • Choose the right nominee carefully
6

Complete Medical Check-up (If Required)

Undergo medical tests as requested by the insurance company for risk assessment.

When Medical Tests Are Required:

  • Coverage above certain amount (usually ₹50L+)
  • Age above 40-45 years
  • Declared health issues in application
  • Insurance company's standard procedure
7

Review Policy & Make Payment

Carefully read all policy terms and conditions before making the first premium payment.

Final Checklist:

  • Verify all personal details are correct
  • Check coverage amount and policy term
  • Review premium payment schedule
  • Understand policy exclusions
  • Keep policy document safely

💡 Pro Tip: Buy Early for Better Rates

Term insurance premiums increase with age. Buying at a younger age locks in lower rates for the entire policy term. A 25-year-old can save 40-50% compared to buying at age 35 for the same coverage.

Documents Required for Application

🆔

Identity Proof

Aadhaar Card, PAN Card, Passport, Driving License

🏠

Address Proof

Aadhaar, Utility Bills, Passport, Bank Statement

📅

Age Proof

Birth Certificate, PAN, School Certificate, Passport

💰

Income Proof

Salary Slips, ITR, Form 16, Bank Statements

📷

Photographs

Passport-sized recent color photographs

🏥

Medical Reports

If required based on age/coverage amount

Ready to Buy Term Insurance?

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Online Plans: 1-3 days | Offline Plans: 7-15 days

Why Get Help from Us?

  • Step-by-step application guidance
  • Best plan recommendations
  • Document preparation assistance
  • Medical test coordination
  • Post-sales support