Life is the most unprecedented thing that may take never-known turns, from where there’s often no way to return. It could be a devastating loss which can have a significant impact on your family and their survival. As a major income holder of the family, you must plan things early.
If you’re looking for a reliable and convenient investment asset, a term insurance policy is a good match for you. It acts as a financial safeguard for your family after your unforeseen demise. The best thing about this plan is that it also offers an income replacement scheme for your chosen nominee.
There are a plethora of term insurance policy variants available in the financial market. This makes it overwhelming for a customer to choose a term plan, especially when they’re unaware of their requirements and financial capabilities that the different policies require. There are several considerations that you need to make before purchasing a term insurance plan for the financial security of your family.
With that said, let’s take a look at some tips to choose the best term insurance plan for the betterment of your family’s future:
1. Consider your age and number of family members
As you age through your life in different stages, you’ll realize that your dependent family numbers have increased in number. If you’re a salaried individual who hasn’t married yet, you have fewer financial responsibilities in comparison to people who have a partner and kids.
Therefore, you need to make sure that you choose the amount of coverage as per your requirements,the number of family members, and financial capabilities. Furthermore, if you’re planning to purchase a term insurance plan at a young age, you need to make sure that it isn’t affected by your lifestyle in the future.
2. Choose Your Coverage Wisely
Whether you contribute a part of the total wealth of your family, or are the sole breadwinner of your home, you must make sure that the cover amount you choose is suitable for the well-being of your family, and ensures a good lifestyle for them, even after you can no longer support them.
According to the general guidelines, you must make sure that your cover amount is at least 10-15 times more than your yearly income. Also, make sure you consider other earning members and the financial assets of your family as well.
3. Get A Higher Claim Settlement Ratio
While choosing a good term insurance plan for yourself, the claim settlement ratio plays a very significant role. In simplest terms, it can be defined as the total percentage of claims received by the company in a financial year by the total percentage of the claims settled successfully.
An insurance company with a higher claim settlement ratio is certainly more reliable as compared to others. Therefore, you need to make sure that you choose a trusted insurer that offers you a good claim settlement ratio to make sure that your family gets the most out of the policy.
4. Enquire About the Available Riders
In addition to the benefits offered by your insurance policy after your death, there are several policies, such as Canara HSBC Oriental Bank of Commerce Life Insurance – iSelect Star Term Plan, that offer additional riders to help you extend the benefit of your policy by expanding your coverage.
Furthermore, you must also thoroughly go through the terms and conditions of the available riders before you proceed to add them to your base plan. It’s also worth knowing about the rider options made available under the particle plan before adding one.
5. Compare Available Plans
If you’ve done even a little bit of research, you may already have come across several term insurance policies that might look fulfilling to you as of now. However, make sure you never take the step ahead without comparing the various plans offered by different insurers.
After evaluating the benefits and features offered by varying plans, you can easily choose the one that fits the bill by determining your family’s financial requirements – that too at the least possible monthly premium repayments.
Best Term Life Insurance Plans in India
Although term life insurance is one of the simplest forms of financial product, the large variety of options make it harder for a customer to choose a suitable plan. To make the selection easier for you, here’s a curated list of best term insurance plans available in India:
1. Aegon Life iTerm Plan
Aegon Life offers a pure term insurance policy known as iTerm plan that features an inbuilt terminal illness benefit to its holders. It offers life coverage until you turn 80 years of age. The policy can be purchased very easily with a hassle-free online process.
2. Canara HSBC Oriental Bank of Commerce – iSelect Star Term Plan
Canara HSBC Oriental Bank of Commerce Life Insurance’s iSelect Star Term Plan is one of the best term insurance plans available in the market in a wide range of variations. At a very genuine premium amount, it offers you peace of mind by safeguarding your family’s future as per your requirements.
3. Bharti AXA Term Plan protect
Bharti AXA also offers an online term insurance plan that offers total coverage to your family, and also offers tax-saving benefits. The plan falls under family care benefits so you can feel free to choose your desired coverage amount and policy tenure as per your requirements.
4. ICICI Pru iProtect Smart
ICICI Pru iProtect Smart allows you to choose from a wide variety of different life cover options as per your requirements. As it’s a comprehensive term insurance plan, it offers complete protection to your family with a very nominal premium rate.
5. Aviva Life Shield Advantage Plan
Aviva offers a non-participating and non-linked protection plan known as the Life Shield Advantage plan that helps you safeguard your family in case of any unprecedented happenings. It also provides the return of premiums in case the policyholder survives until the end of the tenure.
Everyone wants to make sure that their family lives safe and happy after they’re gone forever. With a term life insurance plan, you can certainly make the future safer and more secure for your family.