Looking for the best term insurance plan in India does not quite work like your other shopping experiences. It is a major financial decision as this requires you to make careful considerations and plan appropriately. Although you might have heard that learning to handle your finances is a crucial life skill, you may not know where to begin. Moreover, when it comes to the security and safety of your loved ones, there is no room for mistakes.
So, when the stakes are high, having the roadmap to find the best term insurance plan in India may simplify things for you. No matter the life stage you are in, it is never too late to begin planning for your family’s security. The only thing you must remember is to follow these steps to make a well-informed decision and buy the best term insurance plan in India:
- Calculate The Insurance Amount Required
Most insurance providers offer insurance calculators on their websites to enable easy insurance calculations for policy buyers. Using that, you can find the best term insurance plan in India aligned with your financial profile. It gives you an estimation of the sum assured that is appropriate for your family’s future. You can also adjust the premium rates and policy period, add various riders to see the pricing variations and make the decision accordingly.
It is crucial to calculate the insurance amount because an underestimation or overestimation can be equally detrimental in the long run. If you opt for a sum assured that is not adequate for your family’s living standards, it may render the efforts of finding the best term insurance plan in India useless. Simply put, even with a life insurance cover, your loved ones may become financially dependent on other people in the event of your untimely demise.
Keep in mind the number of dependents, the nature of expenses, the standard of living, major expenditures, debt repayments to choose the best term insurance plan in India for them. If your spouse is dependent on your income solely, ensure that the plan covers their living expenses adequately, considering the impact of inflation as well.
- Choose Policy Period Carefully
You might think that going for the longest policy period is the best option because it keeps you covered and worry-free for long. On the other hand, you might also consider a shorter policy period as it may be easier on your pocket. However, it is crucial to not make decisions solely based on one factor.
Various personal factors such as health condition, nature of the occupation, lifestyle should dictate this decision. Finding the best term plan means choosing the appropriate policy period to keep your family under the financial safety net for the desired time. Consider your debt repayments such as home loans, car loans and significant life expenses such as funding a child’s higher education to choose the right policy period.
- Look At The Claim Settlement Ratio
Knowing what is term plan claim settlement ratio of a particular insurance provider can be key to your decision. In general, policy buyers find it difficult to rely on an insurance provider for their family’s safety. But, a consistent claim settlement ratio of an insurance provider means that they are trustworthy. It is a testimony to their commitment to honouring the promise.
So, make sure to compare the claim settlement ratio of different insurers to find the best term insurance plan in India. This way, you can remain worry-free that your family will receive the sum assured without facing any hassle in case of an unfortunate event.
- Select Add-Ons Wisely
The add-ons to your policy come in the form of riders offered by insurance providers. They can vary depending on the insurance provider and the kind of term plan benefits. Usually, the riders provided by most insurers include critical illness rider, accidental death & disability rider, waiver of premium rider, etc.
Including suitable riders in your plan can optimize the benefits considerably. It gives you a chance to customize the best term plan according to your financial standing and requirements. However, remember not to go overboard with riders as they may cause financial strain when you pay the premiums.
- Disclose Correct Information
As per the IRDAI annual report, the life insurance industry paid 97.27 % of claims in 2019-20. But, there are several instances when a claim gets rejected because of mistakes that can be prevented. One of the common reasons for claim rejection is incorrect information provided by the policyholder.
It is a mistake that can be easily avoided if you are cautious at the time of buying the plan. If you make an effort to find the best term insurance plan in India for your family, it is best to be honest when providing critical information to avoid future complications.