7 Things to Do After You Buy Term Insurance

When you buy term insurance , you take a big step towards a secure financial future. However, your work does not end when you simply buy a term plan. There are certain steps you need to complete after you buy term life insurance online.

But before we explore what those steps are, let’s first acquaint ourselves with what is term insurance and how does it work.

What is Term Insurance and How Does it Work?

When you buy term insurance, your insurance provider may tell you what you are signing up for. However, it is important to know how term insurance works before you go to buy term plan to make an informed decision.

Term insurance is a life insurance policy that looks after the policyholder's loved ones in the event of their untimely demise. This service is offered by the policyholder's payment of a specified premium. The premium amount is decided on factors such as the health, age, gender, etc. of the applicant. However, if you buy term life insurance online, you can get a discount on your premiums.

Essentially, here is how term insurance works:

When you buy term insurance, it gives you coverage for a set period, like 10 or 20 years. If you pass away during this time, your nominated beneficiaries get a payout. If not, the coverage ends without any money back.

Let’s take a look at the steps you must take after you buy a term plan.

7 Things to Do After You Buy Term Insurance

• Carefully read through the policy documents

  Whether you buy term life insurance online or in person, you have a free look-in period. which ranges between 15-30 days, wherein you could cancel the policy if you find something that doesn’t sit right with you. During this time, you must carefully read through the policy documents and iron out any discrepancies by discussing them with your insurance provider. This ensures you don’t have any unpleasant surprises in the future.

• Notify the nominees

  Once you finalize the term plan, the next step is to notify your nominees and explain to them how term insurance works. If you have more than one nominee, you should speak to all of them about the facts and processes.
  You can do it easily anytime if you have not selected your nominee yet. You can also change the nominees during the policy tenure.

• Create a payment set up for the premiums

  On several occasions, people buy term life insurance online and, in the rush of life, forget to make timely premium payments. However, if you miss a premium payment, there is a chance of lapsing your policy. It is prudent to set reminders for premium payment or (if your insurance provider offers it) set up an auto-debit so the money is automatically transferred from the bank to the insurance.

• Take care of the policy documents

  Store the policy documents safely and label the file so that the nominees can access it easily when needed. Ensure that all the papers are in order, so the nominees won’t have to scramble for them when the papers are needed.

• Acquaint yourself with the claim process

  It is important to know about the claim settlement process so you can take the necessary action promptly when needed. You must also explain the settlement process to your nominees.

• Maintain a file with your health records

  When initiating a claim, the nominee might need your health records and so it is important to keep a file with your health documents. This includes your prescriptions, medical bills, and other relevant documents.

• Look after your health

  You cannot neglect your health after purchasing life insurance. Ensure that you maintain a healthy lifestyle by eating healthy, staying active, and avoiding smoking, drinking, and a sedentary lifestyle.

And, if you do not have a term plan yet, it is time you check out PNB MetLife’s family protection solutions because it is important to have a term plan bought from a trusted insurer.

Conclusion

Embracing these post-term insurance steps solidifies your financial preparedness. By nurturing your health and maintaining vital records, you bolster both your coverage and peace of mind. With these insights, you are empowered to maximize the benefits of your term insurance , shielding your loved ones against uncertainties that lie ahead.