Find Out Best Term Life Insurance Plan For Yourself

Find Out Best Term Life Insurance Plan For Yourself

Let’s discuss some salient features of a term plan and determine how to choose the best term insurance plan for yourself

Which Is The Best Term Life Insurance Plan For You? Find Out Here!

Life is completely uncertain and nobody can evade death, but the least you can do is have a backup just in case something unfortunate takes place. If you want to ensure a secure financial future for your family and dependents, there are several inexpensive ways to do so.

One of the most popular options is investing in a term plan. It provides monetary benefits to your dependents in the event of your unfortunate death. These policies require very nominal premiums as compared to standard whole life policies.

In this article, we’ll discuss some salient features of a term plan and determine how to choose the best term insurance plan for yourself.

In this article, we’ll discuss some salient features of a term plan and determine how to choose the best term insurance plan for yourself.

What is Term Insurance?

As the name suggests, a term plan is a specific variant of a life insurance policy that provides financial protection to your family in the event of your death for a definite period. In case you die during the policy tenure, the insurance company provides an assured sum of money to your chosen nominee.

They’re the most economical investment plans available in the market to attain financial security. Term plans provide high coverage at very convenient premium prices that make them extremely popular insurance plans in India.

Amazing Features of Term Plans

Here’s a rundown of some of the most promising features of term plans:

Low Premiums

If you want to sustain a high sum assured then a term plan is a perfect option for you. Also, As the plan only covers the risk of premature death, the premiums are usually very affordable. It’s the cheapest among all insurance policies like money-back plans or ULIPs.

High Sum Assured

To enjoy a greater level of protection against premature death, you have to make sure that you have a sufficient coverage level. However, With term insurance, you can enjoy a higher coverage level and choose the desired sum assured based on your financial requirements.

Different Plan Options

The best thing about term plans is that they’re available in a myriad of options to help you fulfill your requirements. You have all the liberty to choose the plan that matches your requirements and provides unparalleled benefits for your investment.

Long Coverage Tenure

The coverage duration in the term plan is usually between 10-35 years; which means you can stay covered even at older ages. With such long coverage tenure, you can make sure that you’re adequately covered in the most sensitive years of your life.

Additional Riders

To extend your policy’s coverage and make it more comprehensive, term plans allow you to choose from various optional riders. Also, These are additional coverage benefits that can be added to your policy based on your requirements. With term plans, you can choose from riders like accidental death benefit, critical illness benefit, and many more.

Tax Benefits

As per the Income Tax Act of India, term plans provide dual tax benefits on the premiums paid and the benefits received under sections 80C and 10(10D) of the Act with a deduction of up to Rs. 1.5 Lakhs in a financial year.

How To Choose the Best Term Insurance Plan?

While term plans are the most basic forms of life insurance, there are still certain factors that should be kept in mind to make sure that you choose the best term insurance plan as stated below:

Address Your Needs

Make sure your decision isn’t influenced by recommendations from your friends or family. Instead, consider doing your research and addressing your needs. Depending on whether you have any dependents or mortgages to pay off, choose the preferences of your policy wisely.

Prefer Online Policies

Purchasing a term plan online is both economical and beneficial in many ways. It allows you to compare multiple policies side-by-side and gain coverage at cheaper prices; as there no intermediaries involved in the process.

Additionally, unlike seeking an insurance agent, the recommendations you gain will be completely unbiased. The best thing is that you can purchase the policy from the comfort of your home; with just an active internet connection and a device with web access.

Determine an Adequate Tenure

Just like the coverage amount, your policy’s tenure also plays a major role in the efficiency of your plan. Before deciding on a specific tenure, make sure you take your retirement age into account. The difference between your current age and your expected retirement age should be your ideal policy tenure.

Also, if you choose to invest in a term plan at a young age, you can enjoy even cheaper premiums.

Keep Inflation in Mind

As you may already know, the value of money decreases with time and you lose the spending power of your capital over time. To mitigate this issue, some of the best term insurance plans provide a periodic increase in the sum assured to tackle the effect of inflation.

Claim Settlement Ratio

While choosing a term plan, one of the most important things to check is the claim settlement ratio of the company. It’s a rational value that specifies how many claims are settled by the insurer out of the total claims received in a financial year. An insurer with a higher claim settlement ratio should be preferred more; provided that the total number of claims is considerable.

The Takeaway

As you can see, there are a lot of factors to consider when choosing the best term insurance plan. Fortunately for you, we have conducted extensive research on the topic; and have prepared this guide to help you weed out all of the noise; so that you can make an informed decision that is right for your needs.

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