How to Choose the Best Term Insurance Plan

Note: Know more about what is term insurance first before reading this article.

Tip 1: While determining the coverage amount, think about the number of family members and your life stage

The number of dependent family members may vary as per the different life stages. A single salaried individual will have less financial responsibility as compared to the person who is married or the one with kids. Thus, one should choose the coverage amount accordingly. Also, if you are purchasing a plan at a very young age then do keep in mind the increasing financial responsibilities in the future.

Tips 2: Think about how much coverage your family will need to maintain a good lifestyle

Whether you are the single breadwinner of the family contributes to the family’s collective income, always choose the coverage amount that is ample for your family to maintain a good lifestyle even in your absence. As per the insurance experts, it is always advised that the insurance buyers should choose the coverage amount 10-15 times of their annual income.

Tips 3: Go for the insurers who have a higher claim settlement ratio

This is the most important aspect to consider while purchasing the best term insurance plan.  The claim settlement ratio of the company is determined as the percentage of claims settled by the insurance company by the total number of claims received in a financial year. The higher the claim settlement ratio of an insurance company is the more reliable it is is.  Thus, always try to purchase the policy from a renowned insurer so that you can be assured that in case of a claim filed, the family will get all the term insurance benefits of the policy.

Tip 4: Know what are the riders benefit offered by the policy

Apart from the death benefit offered by a term insurance plan, many policies come with extended rider benefits to enhance the coverage of the policy. Go through the terms and conditions of these riders before adding them to your base plan. Also, make sure that you know what are the riders option offered under a particle plan before zeroing in on one.

Tips 5: Don’t forget to compare the plans

While zeroing in on a term insurance plan it is very important to compare the plans online. By comparing various plans online you can evaluate the benefits offered by the different plan and choose the best term insurance plans as per your suitability and requirement at a minimal premium rate. Thus it is a must to compare the plans online before making an informed decision.

Apart from these simple tips, you can also take help of the below-mentioned table to choose the best term insurance plan. 

Best Term Insurance Plans in India

Let’s take a look at the best term plans in India.

*Disclaimer: The list of insurers mentioned are arranged according to the alphabetical order of the name of insurance company respectively. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. The list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in