Tips & Tricks you Need to Buy the Best Term Insurance Plan
Finding the best term insurance plan is crucial for an individual who has dependents or a family. There are several types of term insurance plans that often leave people confused.
Therefore, it is important to understand what term insurance plans are and how it is beneficiary for the investors. So, let us understand the best term insurance plan in India.
A term insurance plan is a simple straightforward life insurance plan which promises to pay a fixed defined sum of money if the insured expires during the plan term.
If the insured survives the entire plan term, then there will be no benefits provided at the end of the plan term. Since the term plans cover death risk, the premium rates are comparatively incredibly low.
Why Should You Invest in a Term Insurance Plan?
Investing in the best term insurance plan is an excellent way to build a financial safety net for your loved ones. The best-term plan can provide higher returns by investing in affordable premiums.
If you are the only earner, buying a term insurance plan would take care of the monthly financial needs of your family in your absence. You should also get to know about health insurance to secure the health of yourself and your family
A term insurance plan also helps to repay your loans to weigh down your family in your absence. The process from your term plan pays off your loans and liabilities to make sure that the financial burden does not fall upon your loved ones.
There are also some term insurance plans that offer critical illness protection which not only protects your loved ones in case of uncertain eventualities but also during your lifetime.
Features of the Best Term Insurance Plan
It is important to understand the features of the best term insurance plan so that you can have a clear idea of the meaning and benefits of a term insurance plan. Some of the best features of a term plan include the following:
- The term insurance plans are some of the most affordable life insurance products. The premiums you must pay for the term plans are usually much lower than other life insurance plans.
- The minimum eligibility age for investing in a term plan is 18 years so that you can get term plans early in life. Buying the best term insurance plan at an early age helps you get higher coverage at very reasonable premiums.
- The term insurance plans provide coverage for the specified number of years. In case of any unfortunate event, your beneficiary will receive the sum assured in your policy.
- As a maturity benefit, a term plan provides financial protection to your loved ones in case of an eventuality. But it does not offer any return on the premium you pay in the fortunate event that you survive the policy tenure.
- A term insurance plan also provides the benefit of flexible premium payments. You can pay the premiums of your term plan at your convenience. You can choose the frequencies of premium payments i.e., annual, semi-annual, quarterly, or monthly.
How to Choose the Best Term Insurance Plan?
Here are a few tips that will help you in buying the best term insurance plan for you.
Choose the Cover Amount Wisely
It is always advisable to consider the needs and members of your family while choosing the right life cover. Also, you should make sure that you consider the increasing financial responsibilities in the future.
Choose the Right Rider
Apart from the death benefit, you can opt for an additional cover by choosing the right riders such as disability cover, loss of employment cover, and waiver of premium cover. These riders can be added by paying a small amount of added premium.
Compare Term Plans Online
You should always compare different term insurance plans online through various comparison portals. It is more economical and convenient as well. You can compare various products based on distinct factors such as price and other features.
Decide the Policy Tenure
Ideally, it is advisable that an individual should decide the policy tenure by considering the age they would want to retire at. It is always best to buy a term plan at an early age. Because the more the age, the more premium rates you will have to pay.
The best term insurance plan eligibility can differ for each plan and insurer. All insurance companies offer plans with unique terms and conditions.
However, the minimum age limit for buying a term insurance plan is 18 years and the maximum age limit is 65 years. So, you should make sure that you fall under this age criteria if you wish to buy a term insurance plan.
List of Life Insurance Companies in India – IRDA Registered Life Insurers List
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