Factors to Consider While Buying a Term Insurance Plan

We all know the importance of having a life insurance plan and the role it plays in keeping our family secure One amongst the most important goals of one’s life is to secure his/her family’s future. Life Insurance is the simplest way to protect your family against uncertainties in life and financial losses associated with them. Regardless of the funds you have accumulated or invested over the years, certain eventualities, such as critical illness or death, substantially affect your family’s financial condition.

Read more
Get ₹1 Cr. Life Cover at just
Term Insurance plans
Online discount
upto 10%#
COVID-19
Covered
Guaranteed
Claim Support

#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply

Get ₹1 Cr. Life Cover at just
+91
View plans
Please wait. We Are Processing..
Get Updates on WhatsApp
By clicking on "View plans" you agree to our Privacy Policy and Terms of use
We are rated
rating
58.9 million
Registered Consumers
51
Insurance
Partners
26.4 million
Policies
Sold

Buying term life insurance is all the more important if you are the only bread winner in the family. It covers for the loss of income that may come upon your family in your absence or if one falls critically ill. 

As there are many plans available in the market today, we need to select the one that is suitable for us. Here are a few easy points to keep in mind when buying a Term Plan:

1.     Determine the Coverage You Need

The most critical step in buying term insurance is calculating the required amount of coverage. You should avoid the mistake of under-insuring yourself as it will not serve the idea behind purchasing insurance. As recommended by experts, one should buy a policy with a death benefit at least 8-10 times his gross annual income. However, pertaining to the diverse needs of every individual, one should also consider factors like annual income before taxes, needs of the dependents, and the age factor. To find out how much cover you should opt for, click here Human Life Value Calculator.

2.     Assess your Needs and Budget

While evaluating the available options, you should definitely consider whether the sum assured will be able to meet your family’s future requirements.Remember, that what you spend today might not be sufficient tomorrow; therefore, it is essential to keep the inflation rate in mind while assessing your needs.You can also use the Term Insurance Calculator  to calculate the premium you would have to pay. For instance, a 30-year old non-smoker would have to pay Rs.515 p.m. as premium for a cover of Rs. 1 crore.

3.     Choose the Right Insurer

The next important step is to select the right insurance company based on:

    • Claim settlement Ratio:It is the ration between the number of claims settled by an insurance company and the numbers of claims filed by the policyholders. A claims settlement ratio of 50% means that an insurer has paid for 50 out of 100 claims filed.It is advisable to go for the insurer with the highest claim settlement ratio.
    • Solvency Ratio: It refers to an insurer’s ability to take care of its debts.You can fetch good returns only from that insurance company which has a strong ability to meet its short-term and long-term liabilities.

Policybazaar helps you with a platform to compare and evaluate so that you get the best deal.

Different types of Plans


Term insurance articles

Recent Articles
Popular Articles
Max Term Plan For Women

22 May 2023

Max Term Plan for Women offers term life insurance policy
Read more
What is the Importance of Term Insurance for Mortgage?

22 May 2023

When it comes to homeownership, one of the most significant
Read more
Importance Of Term Insurance For Women

11 May 2023

It is an age in India when women stand neck to neck with men and
Read more
What If I Start Smoking After Taking Term Insurance In India?

01 May 2023

Smoking is one of the most dangerous habits a human can indulge
Read more
What is MWPA?

01 May 2023

The Married Women’s Property Act or MWPA ensures that only the
Read more
LIC Term Insurance 1 Crore
LIC of India offers various plans to help you secure the financial future of your loved ones. In order to make
Read more
What Medical Tests are Required for Term Insurance?
Term insurance offers a sum assured to the beneficiary of the policyholder upon their death that can help them
Read more
2 Crore Term Insurance Plan
The pandemic has surely generated a global panic and emphasised the importance of financial planning that would
Read more
TATA AIA Smart Sampoorna Raksha Param Rakshak Plus
TATA AIA Smart Sampoorna Raksha Param Rakshak Plus is a comprehensive life insurance policy for individuals looking
Read more
8 Major Death Cases Which Are Not Covered in Term Insurance
Term life insurance plans provide compensation to your family or relevant nominee if you die within the policy
Read more

top
View Plans
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL