Importance of Term Insurance
When talking about leading life and living, one should be aware of the term “Term Insurance” or “Term assurance”. Term assurance is a kind of extra security strategy that gives inclusion to a specific timeframe or a predefined “term” of years. In the event that the insured faces demise during the timeframe determined in the strategy and the policy is still active, a demise advantage will be paid. When such incidents occur, it is the family or the people who were reliant on you who tend to suffer. These can be unavoidable and hence, Term insurance is something everyone needs to consider. With various of Insurance plans available, picking the suitable and right one can become cumbersome.
Factors to consider when choosing
Here are some of the things one should consider when choosing the plan.
- Attaining policies online than offline. This would play a huge role in terms of price comparison. You would be able to compare various portals for you to choose the right one. Moreover, you won’t have mediators present like your agent which makes your decision fair-minded. As compared to offline plans, you have cheaper online plans which are economical.
- Comparing another peer policy with your life isn’t the apt thing to do. With different needs for every family, you shouldn’t compare and invest in plans which are suggested based on a peer’s life. Consider your future goal, your family, and assets which can help you choose one which is right for you.
- Consider your tenure time period when choosing the plan. You should decide the policy plan based on the age as to when you want to retire. Generally, it would be around 60 or 65 years. This can be determined by the difference of the current age with an approximate retirement age to get which policy tenure to choose.
- Premium Amount. It is ideal to look at the premium amount as well. The younger you are, the better it is to buy term plans as the premium amounts are cheaper. The price varies with age.
- Take a look at the coverage. Most of the people consider that term insurance is for to take care of our dependents only in the case of lamentable demise. But in term consideration, just the demise coverage shouldn’t be enough. You should also consider the coverage during unfortunate activities like accidents or disability. Hence, other unfortunate activity coverage should also be there apart from the demise coverage.
- Claim ratio settlement is another factor to consider before choosing one of the best term insurance plans in India. This ratio lets you know the number of policies that the company has settled by paying for the death claims. A company which can settle about 95 out of 100 claims per year is something you really should consider. If the company doesn’t pay after your demise, it would affect the family’s future as they won’t be getting paid for even after investing in plans.
- Another thing to keep in mind is the Amount Settlement ratio. Often, companies tend to find some petty reason to reject our claim amounts due to their high amount (around 1 or 2 crore). They would rather settle with smaller claims which can increase their above-said claim ratio. Not just that, the company would save a huge amount of money by rejecting the high claimed ones over the small claimed ones.
All this said it is important to consider these factors when choosing the right term insurance plan. This can not just affect yourself but also plays an impact on your family’s future in case of any unfortunate activities which can take place. So, if you are planning on investing in one, read over the T&C along with the details with care before you proceed along with the above points taken into consideration.