A term insurance plan is a pure protection cover that pays your family a lump sum amount equal to the sum assured, in case of your unfortunate death during the policy term. It secures the financial future of your family.
Being a pure protection plan, it is available at a nominal premium. Buying an online term insurance plan helps you to receive an additional discount on premiums, so it’s the most cost-effective way to ensure financial security for your family or loved ones.
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Tips to Choose the Best Term Insurance Plan
We are listing down the key points that will help you to choose the best term insurance plan.
Assess the Life Cover
When you are looking to buy a term plan, the first and foremost step is to assess the life cover you need, depending on the number of dependents, how much money you need to fulfill their financial goals like child’s education & marriage, re-payment of debts. When deciding on the life cover or sum assured amount of family term insurance, you should consider the inflation factor. Choosing a sum assured of Rs 20 Lacs may not be enough to cover the financial expenses of your family say 20 years later.
Buy Early
Age factor is a major determining factor for term insurance premiums. If you buy early say at 28 years, you can get the life cover at a lesser premium than one who is buying this plan at an age of 40 years. The insurance company has a view that a young individual has less risk for any health-related complication. When seeking to secure the financial future of your family, it is thus advisable to buy a term plan early in your age that will help you protect the financial interest of your loved ones plus save a lot on the premiums through the entire policy term.
Choose only Required Riders
A Rider or add-on provides additional coverage under the policy, upon payment of the additional rider premium. It is thus advisable to choose only the requisite rider/s, depending on the level of protection you need for yourself or your family. Riders that you can choose under a term plan include Accidental death benefit Rider, Disability Rider, Critical Illness Rider, Income Benefit Rider, Waiver of Premium Rider, etc.
Look for Claim Settlement Ratio
Claim Settlement Ratio is an indicator of the proclivity of an insurance company towards paying the claim amount under an insurance policy. When you are seeking to choose an insurer for buying a term policy, don’t forget to search for its claim settlement ratio. It is advisable to pick an insurer with having high claim settlement ratio that will increase the chances of quick and easy claim settlement for your policy.
Max Life Insurance Company has 96.23%, Aegon Life has 95.30% and HDFC Life Insurance Company has a 95.02% of claim settlement ratio.
Buy Online
By buying a term insurance plan online, you can get the life cover at lesser premiums, intermediary cost is eliminated. Online buying of insurance involves a hassle-free procedure plus enjoying the quick policy issuance.
Before buying a plan, you should compare various term plans available and choose the best one that suits to your protection needs.
Best Term Insurance Plans
| Life Insurance Companies | Term Plans | Age at Entry | Maximum Maturity Age | Minimum Sum Assured | Policy Term |
| Max Life Insurance Company | Max Life OTP Plus | 18 to 60 years | 75 years | Rs 25 Lacs | 10 to 40 years |
| Aegon Life Insurance Company | Aegon Life iTerm Plan | 18 to 65 years | 80 years | Rs 25 Lacs | 5 years up to 80 years of age |
| HDFC Life Insurance Company | HDFC Click2Protect Plus | 18 to 65 years | 75 years | Rs 25 Lacs | 10 to 40 years |
| ICICI Prudential Life Insurance Company | ICICI Pru iProtect Smart | 18 to 65 years | 75 years | Depending on the minimum premium | 5 to 40 years |
| Bajaj Allianz Life Insurance Company | Bajaj Life eTouch | 18 to 65 years | 75 years | Rs 50 Lacs | 10 to 40 years |
Read our article “Are You Choosing the Right Term Insurance Plan” for understanding more about term insurance.
Conclusion
Life is uncertain and it is always important to secure your family’s financial future, so they don’t have to be devoid of finances when you are not around. By choosing the best term insurance plan, you are supporting your family financially, even in your absence. It is also advisable to first compare various term plans online and then choose a plan after assessing the protection needs of your family.