Life insurance is a shield to protect your family’s financial future. Life insurance policies are primarily designed to act as a financial safeguard for your loved ones in your absence. Buying the best term insurance policy is a crucial decision that must be done wisely. You have to take care of various aspects such as –
- Compare different plans
- Review their features and benefits
- Consider claim paid ratio of the chosen insurer
- Choose a substantial Sum Assured that helps secure all existing debts and future goals
The life insurance policy provides a significant Sum Assured to your grieving family so that they can stay afloat, in case of your unfortunate demise within the policy tenure. The insurance benefit will also help you family pay off any liabilities that you may have left behind. It is thus, crucial to understand what term plan is and how it assures that the dreams of your family are taken care of in your absence.
Benefits Offered by the Best Term Insurance Policy in India
- Pay-out Options –These are offered in, lumpsum amounts at the end of the policy term, staggered pay-outs along with the lump sum amount, regular monthly income along with the partial lumpsum amount
- Riders –These are available in the form of accidental death benefit rider, critical illness rider, and waiver of premium rider for comprehensive protection against death, disability, accident, or disease
- Premium Payment Mode –Available as monthly, quarterly, semi-annually, or annually, as per your financial convenience
Here are some things that will help you buy the best term insurance policy in India:
- Get Adequate Coverage
Determining how much cover you should get is an essential decision while choosing the best term insurance policy. Many people select a random number, like Rs. 1 crore, which seems adequate to them. You must not make that mistake and assess all your future needs, along with considering inflation.
You must have sufficient coverage to cover all your liabilities (if any), lifestyle expenses of your family and future goals such as your child’s marriage and their education. For better management and assessment of funds, you can use online term plan calculators by reputable insurers such as Max Life Insurance.
2. Disclose Personal Information Correctly
It is advisable not to hide things from your insurer if you want to avoid rejection of claims at later stages. For instance, do not hide the details regarding smoking or drinking to save on the extra premiums. If you do so, you are breaching the contract with the insurer that may lead to claim rejection. Therefore, you must disclose all the information in the policy forms correctly and verify it properly before submitting the same.
If you put any wrong information while buying term insurance, and later the insurer detects that the cause of death is a health condition that was not disclosed, the claim will be rejected.
Hence, to get the best term insurance policy in India, you should never put the wrong information about your age, health information, smoking or drinking habits, or past medical history in the proposal form.
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3. Buy a Policy Early in Life and for Long-term
It’s advisable to purchase the best term Insurance policy early in life and for maximum tenure possible. When you at a young age, you will have lesser health issues, and hence, the premium amount will be much lower. As you grow old, the number of health issues starts increasing. Hence, you will need a financial backup in times of medical emergencies. By opting for a longer tenure, you ensure that you are covered for a more extended period, and so your family members will be provided with complete security.
4. Add Suitable Riders for the Best Term Insurance Plan
Riders are a significant enhancement to your best term insurance policy, but only if you require them or if they are specific to your case. Some of the term plan riders are – Accidental Death Rider, Disability Cover, Critical Illness, Waiver of Premium, Income Benefit Rider.
For instance, critical illness cover from reputable insurers often includes protection against health conditions like cancer, stroke, and kidney failure. So, if you have a family history of such serious health ailments, you must add this rider to your term plan. So, assess your needs and health history before finalising the decision to get the best term insurance policy.
Choose the Right Cover for Your Family
Term life insurance is a long-term commitment between you and an insurance company, and it will benefit your family in your absence. It is in your best interest to choose the right plan and a reputable insurer for the best term insurance policy. Remember that insurance companies with efficient claim paid processes end up with a higher claim settlement ratio. So, make a wise decision and enjoy peace of mind.