Among all life
insurance plans, term life insurance plans are the most important. You have to
pay a premium and you get cover (protection) for a fixed time period, called
tenure of the term insurance plan.
If a policyholder
dies within the term of the plan, nominees get the sum assured also called the
death benefits. Nominees can pay back car loans and home loans with the death
benefit. If you survive the term of the plan, you get nothing.
Want to know more
on term life
insurance plans? We at IndianMoney.com will
make it easy for you. Just give us a missed call on 022 6181 6111 to explore
our unique Free Advisory Service. IndianMoney.com is
not a seller of any financial products. We only provide FREE financial advice
/ education to ensure that you are not mis-guided while buying any kind of
financial products.
Want to pick the best term insurance plan? Follow
these tips.
STEP 1. Pick an insurer with a good claim settlement
ratio
Before
availing a term
life insurance plan, check the claim settlement ratio of the life insurer.
Claim settlement ratio gives the total number of death claims settled by the
insurer.
Example: If a life
insurer receives 1000 death claims and settles 980 claims, the claim settlement
ratio is 98%. If the life insurer has a good claim settlement ratio, on an
untimely death, the nominee’s claims are settled in a hassle-free manner.
Choose an insurer with a good claim settlement ratio.
STEP 2: Best term insurance plans offer rider
benefits
Good
term life insurance plans offer you rider benefits. This is an extra benefit
offered, if you pay a slightly higher premium.
Popular riders are
critical illness rider and the accidental death benefit rider.
If a policyholder
avails an accidental death benefit rider, on an accidental death/mishap, the
family gets an additional amount, usually twice the sum assured. Critical
illness rider protects you from a financial loss on hospitalization, in case of
a critical illness like heart attack or a stroke.
STEP 3: Good term insurance plans offer a higher
policy term
Your term insurance plan must
cover you across working life. Term insurance plans used to have a policy term
of 25 years. Remember, best term life insurance plans offer a policy term of
more than 30 years.
STEP 4: Best term insurance plans charge low
premiums
Avail term
life insurance plans which charge low premiums.
Remember: The term
life insurance plans must offer good options and features.
STEP 5: Buy term insurance plans from older
Insurers
Many citizens
are comfortable with an insurer who is 10 years old. Life insurance is a
long-term contract between you and the insurer. So some citizens say, older the
better.
Remember: The final
decision of deciding which term life insurance plan is the best, depends on
you. The effectiveness of a term life insurance plan depends on the coverage,
tenure and the goodwill/brand of the insurer and of course, the claim
settlement ratio.
Be Wise, Get Rich.
08042687207
