When should Increasing Term Plan be taken?

How to cancel the LIC policy within grace period?How to cancel the LIC policy within grace period?

When should Increasing Term Plan be taken?

When should Increasing Term Plan be taken? An increasing term plan should be taken at an early stage in life. There are a number of advantages of this. You also need to evaluate your other insurance plans and investments made and then decide if it is a good time to buy an increasing term plan. An increasing term plan is more expensive than a pure term plan and so you need to keep the expenses in mind as well.

I am 22 years old and single. Should I buy an increasing term plan now?

A young person would benefit a lot from buying an increasing term plan, keeping an eye on his future financial liabilities. If you are 22 years old, you must have only recently started your career and from here on you will only grow and see changes in your lifestyle. You will also get married and have children in a few years. So if you are thinking about your future, it is a good time to invest in an increasing term plan. And since you are young, you will get the plan at a lower cost as well.

Is it a good idea to buy increasing term insurance when I am vulnerable to illnesses?

If you are healthy now, but feel that in the years to come you may develop a serious medical condition, you must most definitely buy increasing term life insurance. A unique feature of increasing life insurance is that the premium doesn’t change even if the policyholder gets sick later on. This means that the health status of the policyholder at the time of the policy commencement is taken into consideration only. So if you have a family history of a certain illness (like cancer) or work in a place where you are vulnerable to develop a disorder (lung problems due to working in a coal mine), it is a good idea to buy this kind of a plan before the tragedy strikes. In any other plan, when you opt for a higher cover, your health will be checked up and you may have to pay more later on.

I recently invested in a child plan and a ULIP. Is this a good time for an increasing term plan?

If you already made investments for the future of your child and also invested in a ULIP from where you expect to get an increased return, you may not need to buy an additional increasing term plan. There should be a balance in your insurance portfolio and you must always see to it that you don’t buy either too less or too much insurance. Speak to your insurance agent or financial advisor and check whether the coverage you have is sufficient or not. Only then decide to buy an increasing term life insurance.

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