Tips to Choose the Right Term Insurance Plan

Life is surely full of uncertainties, besides any unforeseen event does not come with prior notice. The term insurance plan will act as the safety cushion for the financial future of the family against any uncertainty. A term plan is also mostly referred to as the income replacement for the family members.

Get ₹1 Cr. Life Cover at just ₹449/month+
Term Insurance plans
Save more with upto 10% discount
Covers COVID-19
Policybazaar is
Certified platinum Partner for
Claim Settled

+Tax benefit is subject to changes in tax laws. +Standard T&C Apply

++Discount is offered by the insurance company as approved by IRDAI for the product under File & Use guidelines

Get ₹1 Cr. Life Cover at just ₹449/month+
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
58.9 million
26.4 million

The term plans are one of the most cost-effective insurance products that offer complete protection, financial stability and meet the needs.

The Buying Rule for a Term Insurance Plan

A term plan is of much help specifically if the breadwinner of the family passes away untimely. The buying rule when purchasing the term plan is that you should obtain a cover that is equal to the ten or twenty times of the yearly income.

On the premise of your requirements, you can choose from different types of term plans available in the market such as a pure term plan, term plan with the income benefit, an increasing sum assured plan or the return of premium plan. Moreover, you also have the option include different add-on covers that meet your specific needs such as the critical illness cover, accidental death benefit rider, waiver of premium, and so forth. It is highly recommended to buy a term insurance plan online and enjoy the considerable benefits.

However, when the time comes to make the final decision of buying the term insurance plan, people often get confused in regards to the sum of life cover, policy term, type of plan and so on. Listed below are some tips that would help you to make an informed decision:

  • Assess the Cover Amount

    You need to think about the stage of life and the number of members of the family members when it comes to determining the cover sum. The family members will differ at various stages of life. For instance, in case you are unmarried your financial responsibilities will be different when compared to a married individual. Therefore, the cover sum is chosen accordingly and keeps an eagles eye in regards to the prospective times and plan well for the financial responsibilities that would increase.

  • Analyze the Lifestyle of the Family

    Another important tip that should be taken into account while buying the term insurance plan is to understand the lifestyle of the family. This means that assess the expenses of the household, the fund required to meet the everyday needs. Besides, make sure that you have taken into account the factor of loans or liabilities if any. While planning the life cover, do not forget to take into consideration the aspect of inflation.

  • Understand the Needs of the Family

    When it comes to choosing the cover amount it should not only be solely based upon your income but also the needs of the family. Regardless of whether you are the prime earning member of the family or another contributing member to the family’s collective income, choose a cover sum that is equivalent to the sum of income required to meet the family’s everyday bills.

  • Take into Account the Liabilities

    When you start earning most likely you will be under the burden of liabilities such as a home loan, personal loan, short-term loan, car loan, and so on. Therefore, make sure that if you are not around the burden of repaying the instalments or the EMI do not fall on the shoulder of your dependents. So, include the sum repayable of the outstanding loans in the life cover accessed.

  • Look for Claim Settlement Ratio

    A term insurance plan is of no use when you are unable to use it when it is required the most. Therefore, chose the term insurance company that has a high claim settlement ratio. The high number represents the company's claim settlement process is effective and shows the number of claims that have been settled against the filed ones. It is to be noted that, higher the claim settlement ratio, better is the chance of availing the complete sum assured amount.

  • Identify the Riders to Maximize the Coverage

    A term insurance plan is just not limited to the death benefit. The plans also offer add-on covers that are termed as rider benefit options. By paying an additional premium you can add more value and enhance the protection to the basic term insurance plan purchased.

The Bottom Line

It is highly recommended to buy a term insurance plan online as it gives you the liberty to take charge of the coming times. Moreover, it brings in additional responsibility of staying informed in regards to the requirements and product features.

A term insurance plan will work best for you when the requirements are matched and thereafter you would be able to buy the right term plan. The prime intent of a term insurance plan is to help the family to meet the everyday amenities expenses even if you are not around tomorrow. An ideal term plan would be the one that would help the family to meet the life objectives and not worry about the finances.

Types of Term Plans

Term insurance articles

Recent Articles
Popular Articles
LIC Relaunched A Term Assurance Plan: LIC New Jeevan Amar

25 Nov 2022

Life Insurance Corporation (LIC) of India recently relaunched...
Read more
HDFC Term Insurance Customer Care

18 Nov 2022

HDFC life insurance company offers various term life insurance...
Read more
Limited Pay Term Insurance Plans for 15 Years

04 Nov 2022

The limited Premium payment option allows you to pay the premium...
Read more
HDFC Life Click 2 Protect Elite

20 Oct 2022

HDFC Life Click 2 Protect Elite is a comprehensive term insurance...
Read more
This Bhai Dooj Gift Your Sibling Financial Security With Term Insurance

12 Oct 2022

Bhai Dooj celebrates the spirit of love and affection between a...
Read more
Life Insurance Companies in India
Top Life Insurance Companies of India With Claim Settlement Ratio Life Insurance Companies in...
Read more
Zero Cost Term Insurance Plan
Zero-cost term insurance is a new variant of term plans in which the policyholder has the option to exit the term...
Read more
Term Plan with Return of Premium - TROP 2022 | Policybazaar
Term insurance Return of Premium (TROP) is a variant of a term insurance plan in which the entire premium paid...
Read more
Term Life Insurance for NRI in India
Every bread-earner wishes to provide financial security and stability to his/her family in some way. Whether you...
Read more
LIC Term Insurance 1 Crore
If you have a LIC term insurance 1 Crore handy, you can cherish all your happy moments as you have made a fine...
Read more

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