Q-1 Why should I buy term life insurance?
ANS-Term insurance offers one of the most affordable ways to protect your family’s finances if something were to happen to you. It offers a death benefit and some plans even have permanent disability riders. Many insurance companies offer Term insurance for a period of 5, 10, 15, 20 and 30 years thus offering relatively long Term of coverage. You should choose a term that at least covers you for the earning years of your life, i.e. 58 – {your current age}.

Q-2 What are term life insurance disadvantages?
ANS-Although the premium of term insurance is very low at the younger age, once the policy term expires after the maximum duration, premiums increase as they are primarily age-related. Generally, the policy doesn’t offer cash value or paid-up insurance so nothing is paid to the insured if he survives the policy duration

Q-3 When is term life insurance the right choice?
ANS-If you wish to have a life insurance with good coverage without having to pay the large amount as premium, for a fixed duration, term insurance is an ideal option. It is most suitable to cover your fixed goals that may disappear over time.

Q-4 How much term life insurance do I need?
ANS-Your coverage need will depend on your individual circumstances. Factors you should consider include anticipated final expenses, living expenses for your surviving family members, any outstanding loans (e.g. auto and credit cards), the outstanding balance on your mortgage, anticipated education costs for your children, estate taxes, and business continuation expenses.

Q-5 What affects the premium rates of my term life insurance?

Ans-Factors affecting the premium of term life insurance are:
• Age of the insured – Life insurance premiums are age-linked. Younger the person lesser the premium. Life insurance premiums vary for different age brackets.
• Smokers or non-smokers – For many insurance companies, premiums are different for smokers and non-smokers. Smokers or tobacco users may have to pay higher premiums depending on the insurance company norms.
• Sex of the insured– term insurance for males will cost more than that for females for the same sum assured.
• Medical conditions – Medical condition of the person being insured is important and medical check-up compulsory for term life insurance. The premium may vary as per the individual medical condition.
• Dangerous hobbies – If you indulge in dangerous hobbies like parachute jumping, race car driving etc. you might either be declined insurance or may have to pay the higher premium based on the insurance company policy.

Q-6 Can the premium of my term insurance change?

ANS- Premium of a term insurance remains the same throughout the term of the policy provided all other factors remain the same.

Q-7 Is medical examination necessary for the term insurance?
ans-medical examination is necessary for all term insurance.

Q-8 Is my term life insurance policy convertible?
ans-Many term life insurance policies are convertible to other traditional plans like endowment plans or money back plans etc. Convertible policies can generally be converted to permanent policies within a specified period of time from policy issue, without providing new evidence of insurability (unless you increase your benefits). It needs to be identified at the time of buying the policy for the convertibility feature.
Q-9 What is the Accidental Death Benefit rider?

ANS-The accidental death benefit rider is an optional policy provision where in event of death due to an accident, an additional amount is paid by the insurance company. This amount is over and above the basic sum insured that the beneficiary will get for your term insurance.

Q-10 What is the Waiver of Premium rider?
ANS-The waiver of premium rider is an optional provision that protects your life insurance policy to be cancelled even when you are not able to pay the premiums in event of your total disability. The payment of life insurance policy’s premium is waived off.

Q-11 What is a p re-medical exam and how do I schedule one?

ANS-To take the term life insurance, you need to undergo a medical examination called the pre-medical. A basic pre-medical exam includes the following:
• Height/weight measurements
• Blood pressure readings
• Heart rate readings
• Urine sample
• Blood sample
• Medical history questionnaire
After receiving your completed application form, the insurance company representative contacts you to arrange your exam at a time and location most convenient to you.

Q-12 can I take more than one term plan?
ans-Yes, you can take more than one term insurance plan. It needs to be declared to the insurance companies regarding the same