The Best Term Life Insurance Out There?

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Term insurance is the best form of insurance as it gives a very high coverage at a low price. The premium of a term insurance plan is a fraction of what you have to pay for buying an endowment, moneyback or unit-linked insurance plan (ULIP) with the same coverage. This is because there is no investment component and entire premium goes towards covering the risk.

You can easily compare all the available policies in market from all top insurance companies in few seconds to choose the best policy as per your needs from here-Term
Here are some pointers to remember while buying a term Life insurance plan:-

Adequate Cover

Just buying a term Life insurance plan will not serve the purpose, having the right amount of coverage is the most crucial thing while purchasing a term insurance plan. This is because term insurance is meant to replace one’s income after he dies.

To arrive at the right amount of coverage that one require one needs to add basic expenses that his family will incur, major expenses such as education and marriage of his children and liabilities such as home loan, car loan etc. If life cover is inadequate it defeats the whole purpose of insurance. Hence, look out for a term insurance plan that offers the amount of coverage that you require.

Tenure

Along with coverage amount, it is also important term insurance plan should offer cover till you need it. Basically, a term Life insurance policy should cover a person until the age he intends to work. Hence, don’t take a short-term cover of 15-20 years that ends when you are in your 40s. Choose a term insurance plan that offers cover till you require it.

Enhance cover

The amount that you may think sufficient might not be enough after few years. Therefore, some companies offer plans where the cover increases by 5-10 % every year or indexed to inflation. As your sum insured increase automatically in coming years, it will take care of the increase in your income as well as inflation. Some insurance companies also offer a plan that allows policyholders to increase the sum insured in certain stages of their life.

Claim settlement ratio

While buying a term insurance plan is very important to check claim settlement of insurance companies. This is important because your nominees will have to contact the insurance company to get the claim. Hence, choose an insurance company that have good claim settlement ratio and claim procedure is hassle free.

Exclusions

Before purchasing any insurance plan it is very important to go through what are the exclusions of the policy.

Charges

Go for term insurance plans that have lowest charges as this will lead to lower premiums for the same cover.

Add-on covers

You can make your term insurance plan more comprehensive with add-on covers at minimal cost. An add-on cover or rider offers benefits over and above the basic policy. You can attach add-on covers to your term insurance plan. Some of the popular riders are critical illness cover, waiver of premium etc.

Convenience

The Internet has made buying term insurance plans very less time-consuming and convenient. And online term insurance plans are also a cheaper option as there is no intermediary and cost is passed on to policyholders.

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