Here’s looking at vital aspects for finding the best plan tailored to your specific requirements.
Things to Remember While Choosing the Best Term Insurance Plan in India
Here are some parameters to use while selecting the best term insurance plan India.
Coverage Amount and Duration: You should look at the options in terms of coverage offered by insurance companies. Check whether you can get your desired coverage amount and that too for your chosen tenure/duration. Different insurers might have varying maximum coverage limits and durations.
Claim Settlement Ratio: It is a crucial ratio which shows the percentage of settled claims in a financial year as compared to the total filed claims. You should choose a higher ratio, ideally above 90%, which will make it more convenient for dependents to file claims down the line (if required).
Premium Amount: You should never choose the best term insurance plan in India without comparing premiums. Don’t just compare features, but also look at the premium amounts for your selected coverage amounts. Premium rates can vary significantly based on factors like age, health, and lifestyle.
Affordability: Check your overall affordability in terms of being able to pay for your chosen coverage amount. This should happen without compromising on your finances. If not, make sure that you strike a balance between the right coverage and the premium that you can easily pay. The ideal option is to choose coverage that is as high as possible.
Riders and Add-Ons: There are multiple add-ons and riders that you can choose in your term insurance plan. These may include riders that cover critical or terminal illnesses and also premium waivers in case of accidental disability and other scenarios. Be aware that these add-ons can significantly increase the overall premium.
Flexible Options: Look for more flexibility in terms of paying your premiums every month, quarter, or even on an annual basis. The sum assured payout should also be customizable, i.e. as a lump sum payout to your nominees or in the form of monthly income. It can also be a combination of both these methods.
The most important thing to remember is that you should calculate the right coverage amount that will suffice for your family in the future (when you are no longer around). You should account for things like higher education, loan repayments, household expenditure, and all other factors (after factoring inflation into the mix) before planning your coverage amount. Consider using tools or calculators provided by insurers to estimate your coverage needs accurately.
Don’t go by blind calculations like an amount that is 15-20 times your yearly salary. Also, check out reviews and ratings of popular insurance companies through comparison websites or consumer forums before making a final decision. On that note, here’s to choosing the best term insurance plan in India that will give you mental peace and fulfillment. It is a necessity and you should not ignore the same by all means.
