Term insurance policy is a type of life insurance plan that safeguards your family and offers them complete protection in case of a mishap. Throughout our life, we acquire various liabilities in the form of car loans, credit cards, home loans, etc. If something were to happen to you, the burden of shouldering these responsibilities falls on your family members. A term insurance cover is the most feasible and comprehensive financial protection that can save your family from these liabilities.
However, to acquire an extended cover and avoid passing on any form of a financial burden to your family, you need to choose the best term insurance plan. Read more to see – why you need the best term insurance policy and how you can select it.
Best Term Insurance Plans of 2018
|Plan||Age (Min/Max)||Maturity Age||Policy Term (Min/Max)||Minimum Assured Sum||Premium Option||Payout||Claim Settlement Ratio|
|LIC e-Term||18/60||75||10/35||INR 50 Lakh||Annual||Lump Sum||98.31%|
|Max Life Term Plan||18/60||70||10/35||INR 25 Lakh||Annual||Income and Lump Sum||97.81%|
|HDFC Life Click 2 Protect Plan||18/65||75||10/40||INR 25 Lakh||Monthly, Quarterly, Semi-Annual, and Annual||Income and Lump Sum||97.62%|
|ICICI Prudential- iProtect Smart Plan||18/65||75||5/40||According to minimum paid premium||Monthly, Quarterly, and Annual||Income and Lump Sum||96.68%|
|AEGON Life iTerm Plan||18/65||75||5/40 or up to 75 years||INR 10 Lakh||Annual||Lump Sum||97.11%|
Reasons for Choosing the Best Term Insurance Plan
Purchasing the best term insurance plan will enable you to provide enhanced protection to your family, secure your family’s future, and help cover their expenses even when you are not around.
1. Financial Security
Term insurance policy is a financial investment which aims to secure your family after your demise. So, you should never be confused about buying it, even if you have a small debt. It is not just to pay the debts and liabilities that you leave behind; rather it is to provide for your family.
Many people don’t purchase the term insurance policy cover because they have mortgage loan insurance or group insurance. However, both these things can’t compare to term insurance because group insurance is dependent on your employment. You can switch jobs or lose your job. Mortgage loan insurance will only cover the loan amount that you have insured. What about the other expenses? Your term insurance will cover those expenses, hence, having it is necessary.
2. Highest Cover at Low Cost
Term insurance is a type of life insurance that offers a high cover with low premium. There are no investment benefits, but with just a small premium amount, you can gain a considerably high coverage. In fact, you can avail term insurance that pays back the premium if you outlive the policy term.
3. Low Claim Rejection Chances
If your policy is active for more than 5-10 years, it is unlikely that your claim will be rejected. If you have purchased a term insurance and provided all the correct details about your health, financial situation, and other information, then there are very few reasons for rejecting your claim.
4. Beneficial Add-Ons
At nominal charges, you can avail add-on covers such as accidental death, partial or permanent disability, or critical illness. However, these add-ons should be availed on need basis since these will increase the premium amount.
How to Spot the Best Term Insurance Plan
1. Buy a Policy Online
To avail the best term insurance plan, look for policies online as the offline medium won’t let you easily compare policies. Visit online broker portals like Coverfox.com, browse different plans, and check numerous policies that cover your requirements. You can make an unbiased decision, and find a better cover.
2. Consider Policy Tenure
Deciding the policy tenure is one of the most crucial decisions of buying a policy. Ideally, term insurance should cover you till you are working, that is till you are 60-65 years in age. For instance, if you are 30 years old right now, your policy tenure should be at least 30 years. You can increase this tenure time, but the least amount of time should be 30 years.
3. Analyse Claim Settlement Ratio
Once you have shortlisted a few policies and decided the tenure, you should look for a claim settlement ratio. Remove the insurance providers that have low claim settlement ratios as that directly means they have settled fewer claims than they have received in one financial year.
4. Evaluate the Company’s Reputation
After this, check your insurance provider’s reputation. Although you can get a fair idea from the claim settlement ratio alone, go through previous customer reviews. It will tell you how much support a particular provider offers during a claim.
5. Check the Premium Amount
While many people check the premium amount at the start, it should be checked in the end after you have shortlisted a few policies. First, gather policies that fulfil your requirements and then select the one with the lowest premium amongst these shortlisted ones.
Buy the Best Term Life Insurance: Don’t Leave Your Debts Unchecked
If you have even a small amount of debt, you should buy a term insurance plan to save your family from financial burdens. The term insurance life plan is one of the most effective policies that you can acquire with minimum hassle, on a low premium, and with high claim settlement chances.