Term insurance is one of the most popular forms of life insurance in India. These plans are especially popular among young adults, and there are some very good reasons behind this. First and foremost, a term life insurance plan is affordable. Young adults do not have a lot of money to spare, so getting affordable coverage is always a bonus. Next, term insurance offers long-term coverage, which is again beneficial for young adults, considering their current age. If you are a young adult who is about to buy term insurance for the first time, we have some handy tips on how you can choose the best term life insurance policy. Read on to get all the details.
Tips to choose the best term insurance plan
- Check the coverage
Start by checking the coverage amount. The coverage amount would depend on various factors such as your dependent family members, your loan liability and your current salary. If you are young and healthy, you can opt for an INR 1 crore term insurance plan and get it at an affordable cost. This is a great reason to get term insurance early on in life, as you can get high coverage at a low rate. As you age, your health begins to deteriorate, and the cost of term insurance goes up. So, do not waste any time now – get the best policy right away!
- Check the tenure
Next, you need to check the tenure of your term insurance plan. Ideally, term coverage should last for as long as you are employed and earning a salary, which normally is till the age of 60. Therefore, if you are 24 years old at present, your ideal term life insurance coverage should be for 36 years. You may be single and free of financial responsibilities now, but you will surely settle down in a few years, possibly even take a home loan. Getting term insurance after that would be more expensive. So, be smart and buy a term life insurance policy now to stay protected later on.
- Check the riders
Riders are add-on covers that you can buy along with the base plan. The common term insurance riders include the critical illness rider and the accidental death benefit rider. These riders help you to make the policy more flexible and better suited for your needs. When you buy an INR 1 crore term insurance plan, you need to see which add-on cover to add. Remember, choose only the ones you need, as buying extra riders will only push up the overall cost of your policy.
- Check the insurer’s reputation.
Next, you need to check the reputation of the insurance provider from which you get the plan. Many insurance providers offer many different term insurance plans. You need to compare term insurance to know which is the best and the most affordable option. However, do not base your selection on the price alone. The cheapest plan may not be the best option. Rather, look at the reputation of the insurance provider. What is the claim settlement ratio? A good insurance provider always has a high claim settlement ratio. Also, ensure the insurer has a good customer support cell so that you can get your queries cleared as and when needed.
- Check the claim process.
You need to check the claim process before you finalise your purchase. Opt for a term life insurance plan from an insurer that has a simple claim process. Remember, you won’t be around when your nominees would file the claim. Your elderly parents or your young children may not know how to go about the process, so look for a plan that has the simplest process which they can easily handle.
- Check the cost
Last but not least, check the cost of the policy. You need to get adequate coverage, but you need to have a suitable premium rate as well. Comparing term insurance will help you to see the rates of the different plans, so run a comparison and find the best deal.
Once you keep these points in mind when choosing the coverage, you will easily find the best term life insurance plan for yourself.
Conclusion
As you can see from the points mentioned above, choosing the best term life insurance is not a difficult task, provided you know the correct parameters to consider when doing so. From choosing the perfect coverage amount to choosing the correct tenure, you need to know what is needed. Do a thorough analysis of your requirements and then proceed to buy the plan. Compare the available options and see which policy matches your exact requirements. Making an informed choice is very important, and when you buy something as crucial as life insurance, you must take care of every detail. Keep all the points mentioned above in mind, and your job will become a lot simpler.
