Finding the best term insurance plan has become a necessity for an individual who has dependents. It is a fact that term insurance offers the most value for money. When the COVID-19 crisis made a significant impact all around the world, the insurance aggregators and insurers have responded efficiently. As the economy recovers and responds to the pandemic, professionals from all economic sections have realized the importance of insurance.
Many people get into the misconception that term insurance plans do not provide good coverage and maturity benefits. However, various term insurance plans offer high insurance coverage at an affordable premium rate. Also, it is a hassle-free process of paying premiums which offers guaranteed safety. There is a wide range of the best term insurance plan available in the market. You can compare and choose any as per your requirement and suitability.
What is Term Insurance in India?
Term insurance is a type of life insurance that provides life insurance cover against the premium paid for a term policy. It provides financial benefits to the nominee or beneficiary in case of any unfortunate event happens to the policyholder during the policy term. A term insurance plan offers not only financial security to your loved ones but also is capable of fulfilling their future needs, like your child’s higher studies, child’s marriage, etc.
Term insurance plans provide the highest life cover at low premium rates during the policy tenure compared to other life insurance plans.
Why Do You Need Term Insurance?
Term insurance plans are specially designed to secure your family’s financial needs in case of death or uncertainty. According to the plan, the family/nominee of the policyholder is eligible for a lump sum amount in case of death or critical illness during the tenure of the policy.
These plans also help to pay off the loans of the policyholder. So, you can be sure that your loan borrowings will not cause any financial difficulty to your family. Buying a term plan is critical to ensure that you meet the obligations for your family even when you are not around.
Benefits of buying a Term Insurance Plan
There are several advantages of buying a term insurance plan. Here are the best of them, which you should understand before purchasing any of the plans.
The best advantage of it is that a term insurance plan offers death benefit as a lump sum amount to the nominee if any tragic event happens to the policyholder.
It also takes care of the loans and liabilities of the policyholder.
A term insurance plan provides financial security to the policyholder’s family so that they can continue to maintain a good lifestyle and meet their expenses.
The premium rate of term plans is much more economical and affordable as compared to other life insurance plans. Before starting premiums, you should always understand what is premium in insurance.
You can easily buy a term insurance plan online by simply going through the insurance company’s website and fill the required details.
Things To Consider While Choosing the Best Term Insurance Plan
To select the best term insurance plan for you, always look into the following factors.
Assess Your Life Goals
The first thing you should do while choosing a term insurance plan is to assess your life goals. When securing a life cover, it is crucial to consider your age and financial condition to choose the right plan.
Check Your Liabilities
Liabilities and your debts are the important parameters while choosing the right term insurance plan. In case the policy term does not cover the time of repayment, then it can be difficult for your family. So, it is always better to consider your liabilities and debts before purchasing any term insurance plan.
Add Riders to Your Plan
There are some specific insurance companies which offer the option of enhanced cover in the term plan. In this option, the policyholder can enhance the coverage of the policy under particular circumstances or critical situations by use of riders.
Purchase From Trustworthy Insurer
The reputation of the company is essential in any business sector, especially in the industry of life insurance, for the customers to trust. Before buying term insurance, it is important to check the credibility of the insurance company.
Check Claim Settlement Ration (CSR)
The claim settlement records can help you clear the insurer’s picture to the prospect policy buyer. The ratio of CSR is released by the IRDA (Insurance Regulatory and Development Authority) every year. It is consistently good and indicates that the insurance provider has been quick and robust in the claim settlement process.
The term insurance plan provides sufficient coverage at affordable prices. There are also multiple options that are available to fit your requirements. It is essential for you to analyse your requirements according to your age, financial situation and the future needs of your family.
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