Find the Best Term Insurance Plan Online
Life is uncertain. There is no way we can avoid tragic events and situations in our life. Most unexpected event like death will have huge emotional and financial impact on the family. Though, the emotional loss would never be able to overcome, but financial protection can be availed. Buying insurance is one of the crucial financial decisions for any breadwinner having a family financially dependent on him. Term insurance plans are by far the best and most essential form of financial protection that you can avail to protect your family against future uncertainties. Read on to know more about term insurance.
Learn about Term Insurance Plan
Term insurance plans are basic and pure form of insurance. It’s the most economical insurance policy in terms of cost as you can avail coverage for INR. 1 cr. just by paying INR.800-1200 monthly. In this policy, your life is covered for the specific term. In the event of death of policyholder during the policy term, lump sum amount or sum assured is paid out to beneficiaries. If policyholder survives the entire policy term, nothing will be paid out to policyholder on maturity. However, there are few term plans that come with return of premium benefit. Such plans are relatively high on cost. Many term plans come with additional riders like disablement rider and critical illness rider etc. It’s important to be adequately covered. Term plans can take care of your family, see off all your debts and provide supplementary income to run the family even when you are not around.
Which Term Insurance is the Best for You?
When it comes to purchasing a term plan, people often get confused to choose from a plethora of options available in the market. However, choosing the best plan depends on one’s individual need. Various elements like family’s need, policy period, existing debts and additional feature and benefits needed etc are to be considered. Here are few things to do for choosing the best suitable term insurance plan for you.
- For pure term plan
If you are looking for just a plain insurance coverage, opt for term plan from a reputed insurer which can give you sufficient coverage at a reasonable and an affordable rate. Consider the number of dependants, your family’s lifestyle, current income and existing loans and liabilities before deciding on the cover. Ensure to avail a plan that can provide you coverage up to 18-20 times of your current annual income.
- For term plan with added benefits
If your family has a history of critical illness, you can choose a term plan that comes with critical illness rider. A large cover can be very beneficial to take care of medical expenses in such critical situations. When you avail term plan with critical illness it can cover both hospitalization and non-hospitalization expenses. And can help you with much needed cash flow during recovery. Check the list of illnesses covered while availing a plan. Similarly, you can avail accidental death rider, disablement rider which can protect your family by providing income replacement. There are various riders. Availability of riders may vary from plan to plan. Usually, riders are optional and can be availed at an added cost. Hence, choose plans wisely and opt for riders that are necessary.
- For income replacement
If your need is to provide monthly income to your family even when you are not around, choose the term plan that offers monthly income benefits in addition to a certain portion of sum assured. However, consider the tax implications on monthly income paid out by such term plans before purchasing. There are many insurers who offer multiple pay-out option. For example, a policy can pay out a portion of sum assured in the event of death and the remaining death benefits are paid out as fixed amount monthly or in terms of increasing monthly benefits. There are many such plans available with flexible options. Choosing the right plan according to your need is most important.
Apart from your individual need, it’s important to choose the right insurer. Integrity and credibility of the insurance company matters a lot. Hence, claim settlement ratio is an important consideration in term insurance plan buying decision. Always ensure to go with insurer having high claim settlement ratio. Do not always compare the plans only on cost basis. Plans with lower premium costs may not always be the best. Cost benefit analysis is an ideal way to compare plans of your choice.
In a nutshell, life insurance is an essential financial investment that will supports your family in your absence. Make a need-based decision while buying a term plan. Search for best term plans on Coverfox and compare them on various parameters. Make an informed buying decision with the help of Coverfox online tools to compare term plans from various top life insurers.