Term life insurance policies can be used to provide a greater degree of financial security for younger people who are just starting their working lives. They can also be incorporated into a long-term financial plan at any stage of your adult life. There is a wide variety of term life insurance products on the market today, which means you should be able to find a policy that’s perfect for your needs at any stage of your journey through adult life. But whether you are young or old, it’s never a good idea to buy a life insurance policy that doesn’t boast these key features:
- Sufficient Coverage – A well-written life insurance policy with terms that suit your needs perfectly will be of little use if the death benefit is too small to support the dependents who currently rely on you to feed and clothe them and provide them with shelter. No matter how appealing the terms and conditions may be, if the benefit is not big enough, you should look at other options. This rule applies not just to the death benefit but also to benefits related to any additional coverage you choose to include in your policy.
- Flexible Coverage – The best life insurance policies can be tailored to meet the specific requirements of individual customers, and you deserve the best. Don’t choose a life insurance policy that doesn’t let you increase or decrease benefits, change beneficiaries or add optional coverage if desired. Gone are the days when the life insurance market was dominated by a few staid old firms that seemed determined to remain in the 19th century. Today, there’s a vibrant global marketplace where reputable insurers offer competitive policies with flexible terms and conditions.
- Flexible Payment Terms – Life is not always as predictable as many of us would wish, especially where money is concerned. With this in mind, it’s a good idea to choose a life insurance policy with flexible payment terms. When times are tough, the option to switch to monthly rather than annual payments could prove invaluable. You should also make sure there are no potential payment processing issues. If you can only use a specific payment channel, make sure it is supported by your chosen insurer.
- Optional Income Protection, Critical Illness and TPD Cover – You might think that it’s safe to ignore this feature if you are not currently interested in any additional coverage, but this would be a mistake. We never know what assistance we might be grateful for in the future, so it is always best to choose a life insurance policy with optional income protection, critical illness and TPD cover.
- Easy Claims Process – It is easy to overlook the importance of the claims processing experience when purchasing a new life insurance policy, but you really shouldn’t. If you need to claim benefits for income protection, critical illness or TPD coverage, your life will already be quite stressful. Having to deal with a difficult claims process at such a time could tip you over the edge, so make sure you choose a policy that makes life easy for claimants.
When you find a competitively priced life insurance policy with all the right features, underwritten by a respected, well-established insurer, your search will be over. In most countries, the most popular life insurance products will come from the oldest and best-regarded companies, such as TAL Life Insurance policies in Australia. If you can find products like these in your part of the world, your search for the perfect policy will be off to an excellent start.