Life is unpredictable which has many uncertain events. Thus, a life insurance plan can work as a cushion for anyone’s financial security against all uncertainties. Having such a plan works as an income replacement for family members.
Still, when it comes to taking the final step of purchasing a term insurance plan, a majority of people often get confused about the tenor and insurance amount.
If you are also concerned about choosing the best term insurance plan in India, then this post will help you out.
Consider the life stages and family members
When you have to decide about the amount of coverage required in the term insurance plan, then you need to consider your family members at their life stages. The financial responsibility of a married person with kids may be different when it comes to a single person; hence, the coverage amount should be picked wisely. Keep an eye out on the future and focus on the increasing financial responsibilities.
Think how much will be enough
When deciding about the coverage for your family members, it should also depend on the current lifestyle of your family. Thus, try to take stock of how much will be required to maintain the lifestyle of your family. While doing so, always factor in the inflation and then plan out the life coverage.
Add all liabilities that you may need to cover
Salaried individuals are often under the load of prevailing obligations such as personal loans, home loans, car loans and more. To avoid the risk of EMI payment of all such liabilities on your family members, you can include the amount payable in the availed life cover.
Consider a term insurance agency with higher claim ratio
To ensure that your term insurance is able to provide you with the needed assistance during an emergency, you need to opt for an agency with a higher claim ratio. Any term insurance agency with a claim settlement ratio of 95% or more is considered good. Hence, compare all plans at a third-party website and then only go for the best ones offering higher claim ratio at a lower premium along with a longer tenor.
Know about the rider that will maximize the coverage
Apart from the death benefit provided by a term plan, some schemes also cover in the form of riders. See if your term insurance plan is offering you riders such as disability cover, waiver of premium cover, employment loss cover and more. You can add all these by paying a small amount to the premium. Hence, the addition of such riders adds value to the basic term plan availed.
The Bottom Line
Some of the major tips that will help you opt for the choose the best term insurance policy are now revealed to you. You may now opt for a term insurance plan that may offer you the discussed characteristics of a perfect scheme. All the best for your term insurance plan!