How to Choose The Best Term Insurance Plan in India
One of the most affordable ways to secure the financial future of your loved ones is by investing in term insurance. A term insurance plan is a kind of life insurance product that safeguards your family, especially after your untimely death.
Ideally, term insurance is known to provide death benefits only. But to enhance the scope of the policy, insurers in India offer rider benefits. Choosing the right term insurance with suitable rider benefits can thus be overwhelming for many people.
In this section, we will help you select the best term insurance plan that will suit your needs.
Things to Consider When Buying Term Insurance
When buying term insurance in India, make sure that you are evaluating the following factors.
- Claim Settlement Ratio
Every insurer in India has a claim settlement ratio determined by the Insurance Regulatory and Development Authority of India (IRDAI). The claim settlement ratio is nothing but the percentage of claims the insurer has settled against the total number of claims received by the insurer in the said financial year.
It will help you understand the capability of the insurer to settle your claims in the future. Also, it is recommended to select an insurer with a higher claim settlement ratio as the chances of your future claim requests being approved are more.
- Compare Different Term Plans
Usually, it is advised not to buy the first insurance policy you come across. It is always better to compare different plans online based on a few parameters. These parameters can be the premiums charged, coverage of the policy, exclusions, rider benefits offered, claim settlement process, etc.
You can use the term insurance calculator to determine the premiums charged on your chosen coverage and rider benefits. All this will help you select a term insurance plan that suits your needs.
- Choose the Right Coverage Amount
Term insurance coverage is another essential factor that you need to consider when buying the policy. Many times, people opt for lower coverage to reduce the premiums charged.
Well, before you do that too, know that this amount is meant to secure your family’s future in your absence. Hence, the coverage amount should be sufficient to cover the financial needs of your loved ones and allow them to live their life comfortably, even after your death.
- Select the Suitable Rider Benefits
As mentioned earlier, insurers in India offer rider benefits on term insurance plans to enhance the coverage of the policy. The different term insurance rider benefits available in the market are as follows –
- Critical illness benefit
- Return of premium benefit
- Accidental death benefit
- Waiver of premium benefit
- Income benefit
Know that opting for rider benefits will increase the premiums. So, only choose the ones that you think will come in handy in the future.
In The End
Once you evaluate your term insurance plan options based on the above facts, you will be able to choose a policy that best suits your needs. With an adequate term insurance plan, you will be able to secure the future of your loved ones and lead a peaceful life. So, go ahead and get quotations on Bajaj term insuranceto getyours and your family’s future covered.