Things to Keep in Mind before Buying Term Insurance Plan

The minute you decide to invest in a life insurance product, your journey as a smart financial investor begins. What can give your family a more comprehensive financial security than a good term insurance plan? The primary criteria involved in choosing the best term insurance plan for your family is to ensure that it is long-term and realistic.

We all know the benefits of a term plan, however; we scarcely do our research and check out all possible options that could get us the best deal in term insurance plans. One of the prime reasons for this is our lack of understanding on this insurance product. So here is an introduction on term plans and the ways they benefit you.

What Is the Role of Term Plans Online

Term insurance plan is a pure life insurance product that you buy for a fixed period (term) of time. There is no savings part in this policy and your family would get the assured sum return only in case of your demise within the tenure of the policy. It is as simple as that.

#1. Helps in Clearing Off Financial Liabilities

By buying a term plan, you are securing your family against all financial liabilities like a car loan or home loan after your demise. This is especially important if you are the sole breadwinner or the primary breadwinner of your family. You must ensure that your sum assured covers all financial liabilities and has a small buffer to stabilize your family.

#2. Covers all Financial Needs of your Loved Ones

This would also provide you with cover against your children’s education, marriage, and your spouse’s future after your demise.

Best Available Term Insurance Plans

While there are many insurance providers in the market with their own unique term plan options, we would compare the top 5 best term insurance plans based on their claims settlement ratio (more than 95% based on IRDA data), and the age of the service provider

#1. Life Insurance Corporation e-Term

LIC tops our list of service providers with best term insurance plans as it is the oldest and the most reliable brand name with regards to life insurance products. Though there is nothing fancy about this plan, and there are no additional riders you can opt for, it has the highest LIC e-term plan has an entry age limit of 18-60 years with a maturity age limit of 75 years. The term range for this plan ranges from a minimum of 10 to a maximum of 35 years. The minimum sum assured of this plan is INR 50 lakhs and there is no upper limit to the sum assured amount.

#2. ICICi Prudential iProtect Smart

This comes with an age limit of 18-65 years with a maturity age of 75 years. You can opt for terms ranging from 5-40 years. The sum assured amount would depend on the premium payable and there is no highest limit on the sum assured. You have an option of paying premiums one-time, yearly, monthly, half-yearly and annually.

#3. HDFC Life Click2 Protect 3D Plus

The maximum maturity age for this insurance product is also 75 years and the age limit range is 18-65 years. The term ranges from 5-40 years and sum insured starts from INR 10 lakh. Here also, you can pay your premiums one-time, yearly, monthly, half-yearly and annually.

#4. Max Life Online Term Plus

With a maximum maturity age of 75 years and the age limit range is 18-60 yrs. The term ranges from 10-40 years and sum insured starts from INR 25 lakhs to a maximum of INR 100 crores. Here also, you can pay your premiums one-time, yearly, monthly, half-yearly and annually.

#5. Aegon iTerm Plan

The best part of this term insurance plan is that it has a maximum maturity age of 100 years. Though Aegon is not a very old company, it still has a good claims settlement ratio of 97.11% and hence it features in our list of best term insurance plans. It has a term range of 5-62 years and sum insured starts from INR 25 lakhs. Here also, you can pay your premiums one-time, yearly, monthly, half-yearly and annually.

Takeaway

While you research for the term insurance plans online, understand your need and then search for the potential policies that would suit your requirement. With a bit of research and comparison of policies on Coverfox.com, you can get the best term insurance plan for your family at the best possible price.