An eventuality can be struck with anyone anytime, during such uncertainties a term insurance plan works as a financial cushion for the family’s financial security. Moreover, the benefits offered by the term plans also work as income replacement for the family member.
With an extensive range of term policies available in the market, customers often get confused to choose the best term plan as per one’s requirement and suitability. While choosing the best term insurance plan, various aspects should be kept in mind like policy period, insurer, coverage amount, etc.
Read further to know a few simple tips on how to choose the best term insurance plan to secure your family’s financial future.
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.
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.
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 benefits of 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.
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.
Let’s take a look at the best term plans in India.
|Plans||Entry Age||Policy Term||Premium Paying Term||Sum Assured||Incurred Claim ratio|
|Aviva Life Shield Advantage Plan||18 years/55 years||10 years-30 years||Single pay, Regular pay||Min-Rs.35,00,000
Max-Option A- No upper limit
Option B- Rs.50,00,000
|Bajaj Allianz iSecure Plan||18 years/60 years||10,15, 20,25 & 30 years||Regular pay||Min- Rs.2,50,000(general category)Rs.20,00,000 (split category) Max- No upper limit||95.01%|
|Bharti Axa Life Flexi Term Plan||18 years/65 years||5, 10,15,20 years||Regular pay||Min- Rs.10,00,000 Max-Rs.25,00,000||97.28%|
|Canara HSBC iSelect Term Plan||18 years/65,55, 50, 45 years||N/A||Single pay, limited pay||Min-Option 1- Rs.25,00,00 Option 2- Rs.50,00,000 Option 3- Rs.15,00,000 Max- No upper limit||94.04%|
|Edelweiss Tokio Life Protection Plan||18 years/60 years||10-30 years||Single pay, regular pay||Min- Rs.15,00,000 Max- No upper limit||95.82%|
|Exide Life Smart Term Plan||18 years/60 years, 65 years||10-30 years, 12-30 years||Regular Pay||N/A||97.03%|
|Future Generali Flexi Online Term Plan||18 years/55 years||10 years- 65 years minus entry age(smokers) 10 years-75 years minus entry age (non-smokers)||Equal to policy term||Min- Rs.50,00,000 Max- No upper limit||95.16%|
|HDFC Life Click 2Protect Plus||18 years/65 years||5 years-85 years minus the age at entry 10 years-40 years||Regular pay, limited pay & single pay||N/A||99.04%|
|ICICI Pru iProtect Smart Plan||18 years/65 years||5,10,15,20 years||Single pay, limited pay, regular pay||N/A||98.58%|
|IDBI Federal Termsurance Life Protection Plan||18 years/60 years||10-30 years||Single Pay, regular Pay||Min-Rs.5,00,000 Max- No upper limit||95.79%|
|Kotak e-Term Plan||18 years/65 years||5 years-40 years||Regular pay, limited pay, single pay||Min-Rs.25,00,000 Max- No upper limit||97.40%|
|LIC Tech Term Plan||18 years/65 years||10 years-40 years||Equal to policy term||Min-Rs.25,00,000 Max- No upper limit||97.79%|
|Max Life Online Term Plan Plus (Basic Cover)||18 years/60 years||Regular Pay- 10 years-50 years Limited Pay- 15 years-50 years||Regular pay, limited pay||Min-Regular Pay- Rs.25,00,000 Limited Pay- Rs.50,00,000 Max- Rs.100 crore||99.22%|
|PNB Metlife Mera Term Plan||18 years/65 years||10 years-81 years||Regular Pay & limited pay||N/A||96.21%|
|Pramerica Life TruShield||18 years/45,50,55 years||7 years, 10 years, 12 years, 15 years &20 years||Regular pay, limited pay||Min-Rs.5,00,000 Max-Rs.50 Crore||96.80%|
|SBI Life eShield Plan||18 years/60 years, 65 years||5 years- 80 years minus the age at entry 10 years-75 years minus the age at entry||Equal to Policy Term||Min-Rs.35,00,000 Max-No upper limit||95.03%|
|Shriram Life Smart Protection Plan||18 years/65 years||10 years-30 years||Equal to policy term||Minimum- Rs,1,00,000 Maximum-Rs.14,00,000||85.03%|
|Star Union Dai-ichi Life Abhay||18 years/65 years||15 years-40 years||Single pay, regular pay||Min-Rs.50,00,000 Max-Rs. 100crore||96.74%|
|TATA AIA Sampoorna Raksha||18 years/70,65,50 years||10years-85 years minus age at entry, 15 years-85 years minus age at entry For Whole Life- 100 years minus age at entry||Limited Pay, Regular Pay||Min-Rs.50,00,000 Max- No upper limit||99.07%|
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