How do I choose the Best Term Insurance Plan?
Monday February 11, 2019,
6 min Read
Term insurance is the most basic and purest form of life insurance. It allows you to financially cover your life in an economical fashion. You get a high life cover at a very affordable cost. This is mainly because the term plans do not offer anything in maturity benefit – if the policyholder dies within the term of the plan, then his/her nominee gets the sum assured and the policy terminates. If the policyholder outlives the term plan, there is nothing to expect in return from it. A term Insurance plan is arguably the best life insurance available, but to choose the best term insurance plan requires most effort on part of the individual. In this article we will see how to choose the best term insurance plan available in the Indian market.
To make a choice of the best product or service, we do comparisons with other alternatives available. Similarly, when choosing the best term life insurance plan, an individual needs to compare the term plan. Why is this necessary? Well, comparison allows you to locate and select the most appropriate and affordable plans. Insurance broking websites like coverfox.com offer a convenient and user friendly platform to compare term plans. Take a look at the term insurance comparison guide mentioned below to know more:
Check for the type of plan
When you start to compare term insurance, look for the exact type of cover you need. There are a many variants in term insurance – we have the term insurance with return of premium (TROP) plans, the increasing term insurance plans, the decreasing term insurance plans and most commonly, the level term plans. Understand what each type of term cover offers and choose your ideal plan carefully. Then, run a comparison between the correct kinds of term insurance plans.
Evaluate the cover
The main aspect of a term plan is the cover. Look at the cover and the cost of each policy when you compare term insurance. This will help you locate the most appropriate term life cover for yourself.
Go through the exclusions
All Term insurance plans have certain exclusions. When comparing, make sure you take a look at all the exclusions. The plan you choose must have the fewest number of exclusions and should suit you perfectly.
Claim Settlement Ratio
Claim settlement ratio essentially means the number of claims that a particular insurer has been able to settle within a certain amount of time. Choose an insurer that has a high claim settlement ratio, so that you or your beneficiaries do not face rejections while claiming the insurance amount.
One of the major factors affecting your choice should be the customer support system of the insurance company. There is no value in choosing an insurance company that is unable to redress your grievances. Choose an insurance brand that has a wide network of offices and an excellent customer redressal forum so that you can deal with issues arising out of your policy or settle your claims seamlessly.
Benefits of Comparing Term Insurance Plans
The best way to purchase insurance covers is through the online mode for the simple reason that you can complete all the necessary formalities at your own time. Here are a few benefits of comparing term insurance plans online.
Choose the Policy offering - Best Riders
Each insurance cover differs in terms of features as well as add-ons that it has to offer. A healthy comparison among policies lets you know which insurer is offering additional features at low costs. This way, you can considerably maximize your coverage from the insurance policy.
See what existing or past customers have to say
Online insurance broking portals such as Coverfox.com offer valuable genuine customer reviews. By reading them, you can gauge the credibility of a particular term insurance policy which will help you make an informed decision when the time comes to choose one.
By comparing policies online, you can easily get to know which insurance company offers customized term plans for you to avail greater benefits. In the light of increasing competition in the insurance sector, you would be surprised to find that every other insurance company is customizing its policies to suit the requirements of the customer and earn his/her loyalty.
Saves from the Hassle of Visiting Insurance branch Offices in person
One of the biggest benefits of comparing term insurance policies online is that you can do so without having to visit an insurance office physically, thereby saving time and cost to a great extent. If you are a working professional or do not have the time to visit insurance offices, online purchase works as a great option.
Term insurance plan benefits and features
Now that you know how you can find the best term insurance plan, let us take a more detailed look at the benefits and features of the term insurance:
Easy on pocket
The biggest benefit of term insurance is that it is affordable. You can get a term cover of INR 1 crore for a monthly premium of just INR 500. Yes, term insurance actually is that cheap and hence, affordable for everyone.
Available online anytime
Term insurance is unlike the other forms of life insurance in the way you can obtain it. Most of the term plans are easily available online. You can buy them at any time of the day, and that too while comfortably sitting at home.
Long Term Life Cover
You can buy a term plan today and stay covered for more than 50 years! Yes, that is correct. Term insurance is available for very long durations of time and allows you to keep your life covered for an extended period of time.
Locked or fixed premium
The premium of the term life insurance plan gets locked in for life when you buy the plan. This means that if you buy the plan at a premium of INR 500 a month today, you still have to pay the same premium for the entire tenure of the plan. Change in government policy or inflation will not have any effect on your term insurance plan base premium.
Easy claim process
If you are honest while buying your best term insurance plan and your nominees can furnish the correct documents at the time of a claim, the claim will be paid out without any issues. The term insurance claim process is simple and hassle free.