Steps Involved in Buying the Best Term Insurance Plan

Insurance Plan

A term insurance is a type of life insurance, which is a necessary plan for an individual who has dependents in his/her family. It is a proven fact that a term life insurance plan is a value for money option if you want to secure the financial future of your family. If the policyholder’s death occurs, then the nominee gets the assured amount and in case of survival of the policy term, the insured gets nothing in return of the policy.

While you get confused with the thought that how to buy a term life insurance policy without any hassle, here are some of the tips with which you can assess the suitable plan and rider for yourself: 

  • Assess your requirements: Remember that the term life insurance policy amount has to be sufficient for your family’s necessity when you are not there. You need to assess the current lifestyle and the expenditure to maintain it, any debts or liabilities, sources of income, number of dependents in the family etc. Do not forget to calculate the amount that you need to invest periodically in case you have planned for your child’s education, marriage or spouse’s monthly pension. 
  • Compare and choose the term plan that works best for you: Compare through the quotes of various trusted company’s term insurance plans available in the market. Generally, there are three kinds of term plans are available in the market – basic term plan, monthly income term plan, and increasing monthly income term plan. The premium varies towards the age, gender, type of plan, cover amount and duration. 
  • Check the claim settlement ratio: Always check the claim settlement ratio showed in percentage, to avoid the possibility of not sanctioning the promised amount insured in the policy for your family member. 
  • Factors influencing hike: It is needed to buy a term plan that protects you from inflation. With age and cover, the duration is taken into account the rise of the lifestyle need to avoid any share of your sum assured amount.
  • Go for riders: Most of the insurers provide ‘add-ons’ riders plan to enhance extra protection. Riders increase the level of protection of the term end plan. 

Some of the Best Term Insurance Plans 

LIC: It is a well-known and trusted brand in India and one of the best term insurance policy from LIC is the e-Term Term Insurance Plan. 

Max Life Term Insurance Plan: This is one of the best term insurance plans currently with high claim ratio and low premium

HDFC Plan: HDFC Click 2 Protect Term Insurance Plan has the unique advantage of offering several riders options along with their term insurance plan.

Aegon Religare Plan: Aegon Religare iTerm Insurance Plan is one of the best plans with low premiums and good features.

ICICI Insurance Plan: ICICI iProtect Smart Term Insurance Plan is a good online plan which comes with various benefits and useful riders. 

SBI Life: SBI Life eShield Term Insurance Plan comes with inbuilt benefits and riders

Reasons That Make Them the Best Insurance Plans 

LIC: 

  • Entry age is 18 to 60 years
  • Maximum maturity age is 75 years
  • Policy tenure is between 10 to 35 years
  • Maximum sum assured for the non-smokers is Rs. 50 Lakhs and minimum sum assured is Rs. 25 Lakhs.
  • All kinds of death, including accidental death, are covered in this plan, excluding suicidal deaths in the first year.
  • Spouse’s name cannot be added if not working.
  • This plan has coverage for the policyholder working abroad or on vacation
  • No riders are available 

Max Life: 

  • Entry age is from 18 to 60 years
  • Maximum maturity age is 70 years
  • Policy tenure is between 10 to 40 years
  • The comprehensive accidental plan rider is available
  • Available in 3 coverage: Basic cover, basic life covers+ monthly cover, basic cover + increasing monthly income

HDFC:

  • Entry age is 18 to 65 years
  • Maximum maturity age is 70 years
  • Policy tenure is between 5 to 40 years
  • The minimum sum assured is 10 lakhs and maximum sum assured has no limit
  • Various options are available – Life, 3D Life, Extra Life, Return Premium etc. 

Aegon: 

  • Entry age is 20 years to 60 years
  • Maximum maturity age is 75 years
  • Policy tenure is between 5 to 40 years
  • There are two death benefits options available with this plan – Simple death benefit and for 5 years, 50% death benefit paid but 3% of the sum assured every month

ICICI:

  • Entry age is 18 to 60 years
  • Maximum maturity age is 75 years
  • Policy tenure is between 5 to 40 years
  • Comes with 4 levels of protection: Life, Life plus, Life and health and All in one. 

SBI:

  • Entry age is 18 to 60 years
  • Maximum maturity age is 70 years
  • Policy tenure is between 5 to 30 years
  • The inbuilt benefit available – Accelerated Terminal Illness benefit
  • Inbuilt riders’ available – Accelerated death benefit rider and accelerated total and permanent disability benefit rider.

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