Term Insurance September 10, 2019

Best Term Insurance Policy in India

Best Term Insurance Policy in India in 2019

Rahul was looking to buy a term insurance cover for himself. He was a 30-year-old new father who also owned a business. He had quite a few responsibilities so he felt the time was right for him to get a term life cover. He wanted a substantial cover but he did not want to spare a lot of money as with the arrival of the baby, his expenses had shot up. A term insurance cover was, therefore, best suited for him. He had heard how easy it is to buy term insurance and he wanted to give the plans a try. But when he went to buy term insurance, he was left rather confused! This was because of the sheer number of term insurance plan that was there. He could not decide which plan to buy. Finally, after running an online comparison, he could locate his ideal cover and bought term insurance online in a quick and easy manner.

Like Rahul, if you too are left feeling a bit confused about term insurance, you will need to find the best term policy for yourself after assessing a few important factors. What are these factors?  Let us find out.

List of Best Term Insurance Policy- How to Choose Term Policy in India in 2019

There are many term insurance plans available in India nowadays. They are all good, but you need to find the plan that’s best suited for your requirements.

Insurance PlansClaim Settlement RatioAnnual Premium Charges (Rs.)Sum Assured AmountMaturity Age (Max. Years)
Max Life Online Term Plus98.3%19,599Min: Rs. 50 Lakhs
Max: No Upper Limit
85
TATA AIA Sampoorna Raksha98%14,101Min: Rs. 50 Lakhs
Max: No Upper Limit
80
HDFC Life Click2Protect Plus Term Plan97.8%11,318Min: Rs. 25 Lakhs
Max: No Upper Limit
75
Aegon lIfe iTerm97.1%10,252Min: Rs. 25 Lakhs
Max: No Upper Limit
100
SBI Life eShield96.7%11,778Min: Rs. 35 Lakhs
Max: No Upper Limit
75

Only then will the plan become the very best one for you. Here are some factors that make a certain term life insurance policy work in your favour:-

Fits Your Needs for Best Term Insurance Policy

The first step to ensure your term insurance cover is ideal is to draw up a list of your requirements. Insurance is specific to an individual. What you need from a term life cover will be completely different from what your friend needs. So you cannot buy the same term life insurance plan that he bought. You need to jot down your requirements. Make a list of your financial responsibilities. See how many dependent family members you have. See what future financial milestones (buying a house, setting up a business, etc) you have left to achieve in life. The term insurance plan you choose should cover these factors. The entire plan and the scope of the insurance coverage will be dependent on this blueprint that you draw up. 

Is My Term Insurance Policy Affordable

After making your blueprint, you may find that the term life insurance policy you need is large and expensive. You should ideally try to get a plan that is large and comprehensive, but you have to keep your own budget in mind. Never buy term insurance that is too expensive for you. Your plan should be affordable as only then will it be an ideal cover for you. If the plan is too expensive, it will become a financial liability for you. You will struggle to pay the insurance premium on time and if there is too much of a delay, the plan will lapse and you will lose your entire life cover. This is why you need to be practical and realistic when buying term insurance. Look for a term life insurance plan that is large but affordable to you.     

The insurer is good

Your plan and its rate are important, but the Life Insurance Companies you purchase the cover from is also very important. Do not choose any random term insurance plan from any random life insurance company. The insurer must be a top-notch company. You should get all the services and facilities that a modern and professional insurance provider offers. From getting access to high-quality customer support to being assured of having the claim settled on time, your insurance provider must be good and reliable. Thankfully, there are some very good life insurance companies that offer some good term life plans at good rates. You will therefore not find it difficult to locate a good life insurance company from whom you can get your best term insurance policy in India.

The Term Insurance Policy is flexible

A term insurance plan needs to be flexible to suit your needs. Only then will it be the best option for you. To make it flexible, you need to add some riders. You can pay an extra term insurance premium and get the riders attached to your insurance policy. The common term insurance riders include the critical illness rider, the waiver of premium rider, the personal accident rider, the disability rider, etc. You may need just one rider or you may need multiple riders, based on what your life requirements are. Get the correct pool of riders added to your term insurance plan and have the best possible life cover at all times.

The payout option is perfect

A term insurance plan is purchased to protect the wellbeing of your loved ones. You should, therefore, think ahead and get a plan to provision for the future. Sadly, if an insurance claim is made of a term plan, you will not be around to oversee the proceedings. You, therefore, need to make the correct choices beforehand. One such choice is deciding upon the payout method. You can choose the lump sum payout or the staggering payout of the death benefit. In the former, the entire sum assured is paid in one go after you die. In the former, it is broken up into smaller installments. Assess your family’s financial capacities and then decide at the correct option. 

The sum assured is sufficient

Next, you need to determine the value of the sum assured. It should be large and sufficient. Do not randomly arrive at any figure you feel is good enough. Take stock of your income, your family’s lifestyle patterns, your debts, etc and then choose a sum assured that would help cover the economic well being of all the family members if you die suddenly and your income stops. You can use an online term life insurance calculator to understand what the value of your life cover should be. You can also get an idea about the term insurance quotes when you use this tool.

The best policy for term insurance is perfect

To ensure you have the best term insurance policy, you need to buy the coverage for the perfect tenure. A term plan is usually bought to cover your earning years. Since most people earn a steady income till they are 60 years old, you can get a term life insurance plan for the same period. So if you are 35 years old now, buy term insurance for 25 years. If you are 20 years old, buy the plan for a period of 40 years. If you feel your financial responsibilities will stretch beyond the age of 60, buy the plan for an even longer period of time.

The type of term insurance plan is correct

Did you know that term insurance is available in various types?  Yes, that is correct! You get level term insurance, increasing term insurance, decreasing term insurance and term insurance with return of premium. You need to see which type of plan suits you the best. Once you have an answer to that question, you will have the best term insurance plan with you. Read the policy wordings, understand what each type of term insurance offers, and then choose the type that you feel would deliver to the highest degree.

The term insurance policy in INDIA is available online

You must look to buy term insurance online. The online term plans are much cheaper than offline term plans. This is because there is no brokerage fee and the processing fees and administrative fees are also lower. The term insurance plan will be ideal for you if it is available online. The online plans also have other benefits like quick purchase, easy premium payments, quick modifications, etc. If you are unable to buy your term plan online, it may not be the best possible option for you.

The claim process is simple

The claim process should be very simple. As mentioned above, you won’t be around when a claim is made on the term insurance policy. Your family will be in a devastated state and at such a time they should not have to face any challenges with the term insurance claim. Make sure the claim process is very simple and straightforward. Unless you verify this fact, you won’t be able to call your term insurance policy the best policy.

Final Conclusion About Best Term Insurance Policy in India 2019

Once you take care of these factors, you will surely have the most suitable insurance coverage, which in turn will become the best term insurance policy in India for you and your family. You can compare insurance quotes and see which are your best options. Narrow down between some good plans and then find the one that fits your needs perfectly. You can get the plan online by paying an affordable premium amount. Buy the plan for the perfect tenure and stay protected in a good and wholesome manner. There are many options available, but remember that only one plan is perfect for you!