In this day and age, having a term insurance plan is the most crucial thing, especially considering that the cost of living is shooting up rather quickly. With such a policy in place, the future of your loved ones will be financially secure in the event of your demise during the policy period.
Now, before we look into how to find the right term insurance plan, let us first understand how this type of policy works.
What is term insurance?
A term insurance plan offers to cover you for a particular period or a defined “term” of years. The benefits of such policies are payable in the event you, the life assured, pass away during the policy period. Since it is a pure risk product, the premiums for such policies are lower compared to endowment policies. It must be noted that no benefit will be paid should you survive the defined policy term.
Features of term insurance plans
- Flexible Policy Term: One of the main benefit of such policy is the flexibility it provides in terms of duration. You can opt to be covered for as little as 5 years and as long as 40 years or till age 80 or even more.
- Death Benefit: In the event of your demise during the policy term, your nominee will be paid the sum assured. The death benefit can also be received as a lump sum or monthly income.
- Low Premiums: When compared to other life insurance plans, the premiums for term insurance plans are reasonably low.
What makes term insurance different from other life insurance plans?
Life insurance can be availed in various forms – endowment policies, unit linked insurance plans or money back policies. Such plans are basically savings and investment plans where a lump sum will be paid to your nominee in the event of your demise or offer you a maturity benefit if you survive the policy tenure. Term insurance, on the other hand, is purely a death benefit plan which pays out the sum assured to your nominee in the event you pass away during the policy period. Should you outlive this period, the insurance provider is not going to pay any survival or maturity benefit.
Compare And Fix The Best Deal For You
Not all term policies are alike. To find the most suitable cover, you need to compare term insurance policies of different providers in the market. But before beginning with this step, identify what your family’s life insurance needs are and then look for policies that provide suitable coverage. You must ensure that the policy you choose takes care of your pending debts and acts as a replacement to your salary/annual income.
Once you know your coverage needs, the next step is to compare term insurance policies (keeping the coverage amount in mind) based on their premiums rates, features, claim settlement ratio and average time taken to settle claims. While premiums play a huge role in determining your policy choice, it mustn’t be the sole criterion for selecting an insurance policy. Take into account the features that you are getting for a particular premium rate. Another very important factor to be considered when you compare different policies is the claim settlement ratio. Look for those insurance companies that have a high and consistent claim settlement ratio as such insurers are reliable and can be trusted for claim payment.
How Comparing Insurance Plans Helps?
When you compare term insurance policies, you are essentially making an informed decision regarding the policy you buy. The kind of plan you choose matters a great deal since the financial future of your loved ones depends on it. You will know exactly what each of the policy gets you when you compare term insurance plans and you are in a better position to select the one that fits all your insurance needs – coverage, premiums, benefits, etc.
You can compare term insurance policies of the leading companies in the market and buy the most suitable cover through the official website of insurance broker, Coverfox in just a few clicks. All you need to do is enter a few personal details like age, gender and mobile number and then click on View Quotes. For better results, it is recommended that you mention your smoking habits, annual income and policy period. This will enable the broker to assess your needs better and accordingly fetch policies that match them. To compare term insurance plans and find the most suitable cover, get in touch with their customer support team by dialling 022 6179 2900. You can also visit the company website to compare term insurance policies offered by the leading players in the industry and buy the plan that fits your insurance needs and budget.