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.