Buying insurance is as important as saving money for your family’s future. The future is uncertain but you can make provisions for the losses that it might cause by getting your life insured. Term insurance is a good option when it comes to getting an insurance policy at affordable premiums. There are many different kinds of insurance policies that help you to plan for the future with more confidence.
About Term Life Insurance
Term Life Insurance is the most affordable among other options for life insurance. It provides benefits to the beneficiaries in case of death of the insured person for a period of time that had been agreed to when buying the insurance. Unforeseen circumstances occur without any warning and at that time the family of the policyholder gets the help to maintain financial stability and take care of themselves. The nominee who had been named in the policy by the insured person receives the benefits as per the terms of the insurance company. They can choose to get the whole amount at once or get it in monthly installments. Some companies even offer insurance coverage if the policyholder suffers from a permanent or partial disability that disrupts the income that the person earned for the family.
It must be noted that Term Life Insurance does not guarantee cover at the earlier rate of premiums in case the insured person survives past the due date of its term. The person has to extend the cover by buying a different plan as there will not be any coverage without the extension.
Importance of Term Life Insuranc.
Your short-sightedness can affect your family when something occurs out of the blue. Save them from the negative impact of life’s many challenges and help them find their feet after being shaken by an unforeseen circumstance. The death of a loved one is never easy to handle and in the case of your death, you can ensure that your family moves on by buying a Term Life Insurance.
The benefits that they can get when availing the insurance cover can help them pay off liabilities and not depend on others for their survival. It is the responsibility of an earning family member to look out for the interests of the family even after the person is not there with them. They can get over the loss and look ahead to a secure future by means of the benefits that this insurance brings them. They can remain stable financially till they figure what to do next. Term life insurance is the support that your family needs. They are not just important to you, they are your everything.
Best Term Life Insurance Policies in India by Top Insurance Companies.
There are many insurance companies in India that you can trust with your life. They provide various kinds of policies so that you can choose the one best suited for you. Some of the best term life insurance policies that you can find are given below.
Aegon Life iTerm Insurance Plan
- Entry Age: Minimum- 18 years, Maximum- 65 years
- Maximum Maturity: 80 years
- Minimum Assured Amount: Rs. 25 lakhs
- Claim Settlement Ratio: 95.30%
Bajaj Allianz iSecure Online Term Plan
- Entry Age: Minimum- 18 years, Maximum- 60 years
- Maximum Maturity: 70 years
- Minimum Assured Amount: Rs. 25 lakhs
- Claim Settlement Ratio: 91.30%
Canara HSBC OBC eSmart Term Plan
- Entry Age: Minimum- 18 years, Maximum- 70 years
- Maximum Maturity: 75 years
- Minimum Assured Amount: 25 lakhs
- Claim Settlement Ratio: 92.99%
ICICI PruiProtect Smart Term Plan
- Entry Age: Minimum- 18 years, Maximum- 65 years
- Maximum Maturity: 75 years
- Minimum Assured Amount: Subject to minimum premium
- Claim Settlement Ratio: 96.20%
Kotak Preferred Term Plan
- Entry Age: Minimum- 18 years, Maximum- 65 years
- Maximum Maturity: 75 years
- Minimum Assured Amount: 25 lakhs
- Claim Settlement Ratio: 94.08%
LIC eTerm Plan
- Entry Age: Minimum- 18 years, Maximum- 60 years
- Maximum Maturity: 75 years
- Minimum Assured Amount: 25 lakhs
- Claim Settlement Ratio: 98.19%
Max Life Super Term Plan
- Entry Age: Minimum- 18 years, Maximum- 60 years
- Maximum Maturity: 75 years
- Minimum Assured Amount: 25 lakhs
- Claim Settlement Ratio: 96.23%
PNB MetLife Mera Term Plan
- Entry Age: Minimum- 18 years, Maximum- 60 years
- Maximum Maturity: 75 years
- Minimum Assured Amount: 10 lakhs
- Claim Settlement Ratio: 92.90%
SBI Life eShield Term Insurance Plan
- Entry Age: Minimum- 18 years, Maximum- 65 years
- Maximum Maturity: 70 years
- Minimum Assured Amount: 20 lakhs
- Claim Settlement Ratio: 95.70%
Types of Term Insurance Plans
As there is no dearth of insurance companies, there is a lot of competition among them to bring the best policies and plans to the public. Many kinds of Term Life Insurance plans are available that you can consider when planning to buy one. All companies offer both offline and online policies that give you plenty to choose from. Have a look at the different types of Term Insurance Plans to make a better choice.
Standard Term Life Insurance Plans Under this plan, the policyholder gets a cover against many risks by paying a premium amount. It is the most common term insurance plan and charges a yearly premium that provides cover for a year as well.
Term Return of Premium Plans This plan is for a certain period and if the cover does not get used in that period the insured person gets the amount back. This plan is popular as the money comes back to the person in case it does not find any use in the term set.
Group Term Insurance Plans These plans are designed to suit the needs of businesses, societies, associations, companies and large families. Every member of the group gets a term insurance cover. The benefits are the same as individual plans but it covers more factors in terms of illnesses or other circumstances.
Term Insurance Plans by Number of Years There are term insurance plans for the number of years specified during the purchase of this plan. The annual premium remains the same throughout the term of this plan. This plan has a range of 5 years to 30 years. A person can buy a plan according to his/her requirement.
Decreasing and Increasing Term Insurance Plans Decreasing term insurance plans allow for a reduction in the premium over the period at the cost of a reduction in the cover as well. Banks and other financial institutions that give out loans buy this insurance to get cover in case of bad debts. Increasing term insurance plans is the opposite as the cover and premium increases during the tenure of this plan. Individuals who want to make a provision for the rising inflation costs in mind go for this plan.
Convertible Term Insurance Plans This term insurance policy, as its name suggests, allows the policyholder to an endowment policy or a whole life insurance plan later. Most companies offer such plans with a rider along with the premium to let the person convert the plan in the future.
Joint Life Term Insurance Plans When insuring more than one person in the family this plan brings cheaper options. Both the insured persons under this plan get the same benefits. Parents with children can go for this plan as it provides a support for the children in the future.
Offline and Online Term Insurance Plans Offline term insurance plans are those that can be bought through an agent or the branch of the insurance company. This is the traditional method that still exists but whose use is going down with the advent of online term insurance plans. Online plans are generally more affordable than the offline ones.
Which Life Insurance Policy Term Should You Buy?
There are various factors that influence your choice of a term life insurance policy. Read on to learn what you must keep in mind when buying a plan.
Reliability The company that you are considering must be well reputed and have a good history of providing cover to its insured policyholders.
Costs The expenses you incur when buying and paying the premium for a plan is another factor that you must check before buying a plan. Search for policies that provide the cover you want at the least premium.
Comfort Don’t buy policies that could lead to hassles in the future due to change in the company regulations. Online plans have made it easier to buy term life insurance policies from the comfort of your house.
Improve Cover Get to know if the company and the plan are open for enhancing the cover later when you want to. This could come useful in critical situations.
Claim Settlement Ratio This is the percentage of settlements that the company has provided per 100 claims for a plan. The closer the percentage is to 100%, the better it is for you.
Solvency Ratio The financial strength of the company is reflected in the solvency ratio. Check it as well to know if the company you are considering has a chance of going bankrupt.
Riders with the Plan This is an extra to an insurance plan that makes it more secure. It gives advantages that are not covered by the plan.
Key Advantages and Features of Term Life Insurance
The advantages of getting a Term Life Insurance are many. As already discussed, it provides a cushion to your family in times of distress. The lump sum amount that they can recover in the case of an unfortunate situation helps them to lead a normal life. The financial needs of your family are taken care of with a Term insurance Plan. Other features have been enumerated below.
Excellent tax benefits
A wide range of policy terms
A low entry age of 18 years and a maximum that varies from 60 to 80 years bring more benefits.
The maturity age is set high so that your whole life can get covered.
If the insurance does not get used, the premium is refunded.
The nominee receives the full benefit if the insured person dies.
The benefits from the term insurance plans can be enhanced with riders.
Term Life Insurance plans are flexible and can be designed to suit the needs of an individual. You can decide on the amount of assured money, the premium payment option, term of the policy, and add-on protection as per your requirement.