But a few studies stated that if you want to invest in a term insurance plan then April is the right time to do so. It is true that you should invest in a term insurance plan for the safety of your family as soon as possible but it will be good if you can do the same in the month of April. Let’s understand why?
For a common person, it is difficult to decide about the right term insurance plan from the available options but at the right time with the right knowledge, you can easily get the right plan that would be enough for to you to get the desired coverage with a bunch of additional benefits. Why do people consider April as the right month to invest in term insurance? The main reason behind the same is the starting of a new financial year.
We all know that every month is good for making an investment. However, the beginning of the new financial year is the best time. During April, most of the salaried persons get annual bonuses and a hike in their current salary package that allows them to think of investment in a more prominent way. With the help of additional funds in hands, people can easily consider an effective form of term insurance and can provide security of utmost level to their families. Those who already have a term insurance plan can easily reassess the sum assured like an increase in the same and purchasing additional riders.
If we talk about the traditional methods of investment in India, then most of the people will go for it at the end of the financial year. As per the experts of the life insurance industry, more than half of the life insurance business comes in the last three months of the financial year and that too especially in March. The reason behind the same is that people invest in life insurance to get tax benefits that are attached to different life insurance plans. However, if you invest in the month of April then the insurance company will be able to offer wider coverage and you can also get discounts with additional benefits.
How to buy the right product?
Thanks to the increasing awareness, a lot of Indians now know the importance of Term Insurance and invest in it for a secure future. While you are planning to buy a term insurance plan there may be several questions related to the same. It is always advisable for everyone to do research before taking any decision. Do check the options available online.
It is important for an individual to invest in a term insurance plan with an adequate cover and he/she should keep all their future financial goals & existing liabilities in mind. According to the thumb rule, you should always go for a sum assured of 10 times of your current annual income. However, don’t forget to keep the inflation rate in mind which is growing rapidly.
Apart from this, if you are paying EMIs of a huge loan then you should buy an extra sum assured. In case of any eventuality where your family requires additional financial assistance, then the term insurance plan will be there to help them out. If you want to know the exact sum assured amount of term plan then you should take help of an online life insurance calculator, it will help you in reaching a number.
It is advisable for you to invest in a term plan till your retirement age and you can also look for the lifelong cover as well. For additional benefits or extra cover, you can also buy riders that include critical illness rider, accident benefit rider and many more. These riders will provide additional support to you in hard times and enhance the value of your investment portfolio. Invest in a term insurance plan smartly after doing the required research. Take help of online insurance web aggregator in choosing the best plan for yourself.
April is a good time to make an investment in a new term insurance plan and review the existing insurance portfolio. Even, if you have already invested in a term life insurance cover, then also you must check the coverage and other associated aspects. You may choose to expand the cover if required.
(Views expressed in this article are a personal opinion of Naval Goel, CEO & Founder of PolicyX.com.)