What term insurance plan is all about?

term Insurance Plans in india

Everyone wants a life that is financially stable and secure and for this people work hard. What about if you are gone? Who will take care of the financial needs of your family? For this, people buy a term insurance plan. It is mainly a life insurance product that provides financial coverage to the policyholder for a specific period even after you are gone. So, people prefer choosing the best term insurance plan that offers multiple benefits. Term insurance plans ensure complete peace of mind by ensuring that the family is financially protected and independent.

Everyone should know the importance of a term insurance plan as it comes with multiple key features. If you are buying a term plan then your nominee will get the sum assured during the demise of the policyholder. There are several insurance companies in India that offer term insurance plan with better coverage.

Benefits that one can get from term insurance

Whole Life Cover: With term insurance plans, you will get a longer coverage. Some of the plans provide cover until the age of 99 which almost means whole life cover. 

Accidental Death Benefit: The best thing is that you can also add the accidental death benefit rider to your plan. With this benefit, you will get protection against any sort of mishaps that happens in the future. The policyholder will get a choice to add a rider to their plan to increase the utility and function of the term insurance.

Affordability in premiums: If you are affordable premiums for the term life insurance then you will get high value for the cover. Premiums depend on the time at which you buy insurance. The payment of premium can be done every month, 6 months, or yearly basis as per your convenience. 

Illnesses cover: Health-related issues are just unexpected, they can happen anytime when you are not expecting it. If you are choosing the critical illness coverage then you will have to pay some additional premium to avail this feature of term insurance. In this, you will get lump-sum payouts in case of diagnosis of some critical illnesses. Apart from this, the policyholder will also have tax benefits. 

Which term insurance plan is best suited for you?

There are various insurance companies in India that provide multiple options for term insurance to individuals. Now, the confusion arises among the people about- how to choose a suitable and the best term insurance plan. When it comes to buying a plan, most of the people think which one would be best. If you also having the same doubt then here is a list of some factors following which you can find the right term insurance for yourself.

Claim settlement ratio: The first and foremost thing that needs consideration is the claim settlement ratio. This is a ratio through which you will get to know about the percentage of claims that have been paid out in the year. The higher the ratio means that it will be easy for your beneficiary to claim the insurance in your absence. Along with this, you also need to check what the total number of settled claims of the insurer is. This ratio will help you a lot in choosing the right term insurance.

Focus on the family’s requirement

The main reason for buying insurance is a family’s financial security. Therefore, it is important to estimate the lifestyle so that you can get the best term insurance cover. All that you need to do is to make an assessment of the amount that would be needed by the family. Also, you must keep in mind about inflation then buy the plan accordingly.

Cost of the premium

Buying the best term insurance plan requires some research and patient. Another factor that must be focused on is the premium cost. Everyone has a different budget according to which they choose insurance. You can narrow down the list of term insurance plans by looking at the premium cost. What would be the premium? How do you need to make payouts for the premiums? All these things must be kept in mind while choosing the term insurance plan. 

Look at the option of critical illness cover

These days, the medical costs of critical illness are skyrocketing. Therefore, you can look for the plan that comes with Critical illness cover. It will help you to cover the high cost of treatment of the illness and ensure your family is having enough money for living day-to-day life.

One important thing is that make sure you are not overlooking any of the above-mentioned factors. By following each of these, you can find suitable term insurance that affordable and provides maximum coverage. Because of multiple features and benefits, one should buy term insurance for the family’s financial security. 

 

Should you stick to the same Insurance provider while renewing your policy?

Insurance Providers

This is the main question that arises in the mind of 90% of car insurance holders at the time of renewal. Among them only one fourth will take a chance to go for a change and the rest of them will continue with the previous one. IF you want to switch then you can easily save a handsome amount of money. Policy change can also give you an opportunity to get something better than the previous policy. But it is not necessary every time that you will get the improved one. If you will keep certain things in mind while going for a change then you will surely get a positive response. You can compare different policies online and look for these points to get a better deal:

Look for Better Coverage: If you are already a policyholder then you have the idea of coverages provided by your company. So, at the time of renewal if the premium gets a little higher than the previous one, it will surely not affect your pocket. Rather than you could have chances to get better coverage that was not considered previously.

Compare with other Companies: If you know that the previous policy is already providing all the required features then also compare once at the time of renewal. In comparison, you will get an idea about other companies as well. It could be possible that the other insurance provider is providing the same features as comparatively very low prices.

Don’t go for too High Premiums: A reasonable increment at the time of renewal is good. But if you are thinking that doubling the premium will provide more security, then you must be wrong. It will help you for a short time span, but later on you might struggle to pay high premiums in the future.

Decrease your Risk: If you want to decrease your premium then you have to lower the risk related to the car. For this you can drive the vehicle safely and carefully, don’t make frequent claims, park your car safely in the driveway or garage, install security devices to track in case anyone stole it.  

Take the advice from an Experienced Person: You can also take suggestions from your friends or family who have been taking an insurance policy for years. They will help you in selecting the policy with a low premium and maximum coverage. They can also provide you the information related to the services provided by a particular insurance company.

Get surety about every term mentioned in policy: There are many misconceptions about the insurance plan, to get clarity about quotes, deductibles and coverages take help from an insurance agent. An agent has a vast knowledge of all the terms related to the insurance policy so he can guide you about the best plan that will fulfil your needs and don’t cause a burden on your pocket.

Take a Driving Course: There are various types of courses offered by driving institutions according to the traffic conditions and vehicle types such as accident prevention, defensive driving and many others. If the driver is experienced enough or has a certificate of any legal driving institution then the insurance company will cut the cost. These drivers are at low risk to get into accidents.

Check your Previous Driving Record: Before switching to any other insurance company check your driving record through MVR. It will help you to know whether you have to pay an increased premium or take a discount on premium rates.

Pay as you go insurance: This insurance discount is provided to the low mileage drivers who pass the black box insurance test. In this test your driving skills will be tracked through a telemetric device installed in the car. In exchange for good driving skills, you can avail special discount on premium cost. 

Check for an additional discount: Insurance companies provide a special discount when you pay the premium amount on a half-yearly basis or annual basis. So, ask your insurance agent about the discounted rates.

Importance of MVR in Insurance

Motor vehicle record (MVR) is a device that will be installed in your vehicle as per the request of your insurance provider. This device will keep the record of your driving history. The insurance company can track your data of three years such as point history, DL information, license status and violations from this device. It will also keep a record of the accident whether they are caused due to your mistake or some other person is faulty for it.

If you are found with many offenses and frequent insurance claims then you are a too risky driver for an insurance company. According to these results an insurance company can either increase your premium amount or discontinue to provide service if the record is too much thrilling. 

When I have to renew my Vehicle Insurance Policy?

The tenure period of vehicle insurance completely depends on the policyholder. You can pay the premium annually, quarterly, half-yearly or monthly but you can renew the insurance plan only after completing a year. It is compulsory to renew your insurance policy when the due date is near. If you forgot to renew it or won’t pay the premium on time, then the policy gets lapsed and you will not be able to take any advantage of that policy. Apart from this, you also have to pay several penalties if the policy gets expired. So, whenever your due date is near, try to get in touch with an insurance agent to renew your policy. The insurance agent will take proper follow-ups and remind you to pay the premium on time. You can also choose to renew your insurance plan online if your insurance provider is providing this facility.

If your policy is already expired then try to avoid driving the car because at that time the company will not pay any reimbursement amount for any type of damage. Try to renew or buy a fresh policy as soon as possible to use your car in a regular way.