In this challenging time, we always want to give a secure future to our loved ones. But do you think your life insurance policy is enough for that? Well, the answer is an obvious no! A life insurance policy is always good as an investment, where you pay premiums and it provides you cover and guaranteed returns in a fixed period of time. Where a Term Insurance policy is one of the cost-effective investment tools which provides ample coverage.
A term insurance plan is the basic form of life insurance which provides a fixed sum assured on the death of the assured/policyholder. The sum assured mostly depends on the premium paid. And the premium depends on the age, health condition of the policyholder, and terms on the terms of the policy.
A term insurance policy provides ample coverage that can be enough for the livelihood of your family when you are not there. The only point with a term insurance policy that can make you think twice is- in the case of the survival of the policyholder the policy offers no maturity benefits. However, with some of the term insurance plans, the return of premium is available, but your premium will be slightly increased if you will go for these term plans.
Features & Benefits of having a Term Insurance Plan
- The term Insurance plan is among a few of the most cost-effective investment tools which financially secure the future of your loved ones when you are not there.
- The plan only offers the death benefit with no maturity returns.
- A term insurance plan provides huge coverage to the policyholder’s family.
- This insurance plan with return of premium is also available, where you will get an amount equivalent to the total premium deposited in case of survival of the policyholder.
- The maximum age till which a term insurance policy provides you cover is 75.
- In terms of avail these benefits it becomes important for you to choose these plans wisely.
- The term insurance plan offers you an income tax exemption under 80 C of the income tax act for the premiums paid annually.
There are wide ranges of affordable term insurance plans available in the Indian market. According to one’s requirement and suitability, one can compare the plans online and choose the most comprehensive plan which is best suited as per their requirement and affordability.
There is a list of some of the popular term insurance plan offered by different companies:
- ICICI Pru iProtect Smart
- SBI Life eSheild
- Max Online Term Plan Plus
- LIC e-Term Insurance Plan
- TATA AIA Maha Raksha Supreme
- HDFC Life Click 2 Protect 3D Plus
- SBI Smart Shield
- Bajaj Allianz eTouch Online Term Plan
- PNB Metlife Mera Term Plan
- Birla Sun Life Protector Plus Plan
- Aegon Life iTerm Plan
- Aviva iLife Plan
Things you should look at while buying a term plan
- Duration of the policy
- Coverage offered
- Amount of premium
- Claim settlement ratio.
Generally, people look only for the premium of the policy while selecting a term insurance plan for them. But it should not be the only factor while buying a term plan, there are many things beyond this which one should consider to get the best deal on a term insurance plan. This includes the claim settlement ratio of the insurer should be healthy. The claim settlement ratio of an insurance company is the number of claims settled against the number of claims filed by policyholders. The higher the ratio, the better the insurance company. One should also look for the return of premium availability, compare the difference between the normal premiums and ROP and then choose one. The plan you choose must offer an ample amount of coverage as it is the main reason behind your decision to opt for a term insurance plan.