Term insurance is the best form of insurance as it gives a very high coverage at a low price. The premium of a term insurance plan is a fraction of what you have to pay for buying an endowment, moneyback or unit-linked insurance plan (ULIP) with the same coverage. This is because there is no investment component and entire premium goes towards covering the risk. Best term life insurance.
You can easily compare all the available policies in market from all top insurance companies in few seconds to choose the best policy as per your needs from here-Term
Here are some pointers to remember while buying a term insurance plan:-
Just buying a term insurance plan will not serve the purpose, having the right amount of coverage is the most crucial thing while purchasing a term insurance plan. This is because term insurance is meant to replace one’s income after he dies. To arrive at the right amount of coverage that one require one needs to add basic expenses that his family will incur, major expenses such as education and marriage of his children and liabilities such as home loan, car loan etc. If life cover is inadequate it defeats the whole purpose of insurance. Hence, look out for a term insurance plan that offers the amount of coverage that you require.
Along with coverage amount, it is also important term insurance plan should offer cover till you need it. Basically, a term insurance policy should cover a person until the age he intends to work. Hence, don’t take a short-term cover of 15-20 years that ends when you are in your 40s. Choose a term insurance plan that offers cover till you require it.
The amount that you may think sufficient might not be enough after few years. Therefore, some companies offer plans where the cover increases by 5-10 % every year or indexed to inflation. As your sum insured increase automatically in coming years, it will take care of the increase in your income as well as inflation. Some insurance companies also offer a plan that allows policyholders to increase the sum insured in certain stages of their life.
While buying a term insurance plan is very important to check claim settlement of insurance companies. This is important because your nominees will have to contact the insurance company to get the claim. Hence, choose an insurance company that have good claim settlement ratio and claim procedure is hassle free.
Before purchasing any insurance plan it is very important to go through what are the exclusions of the policy.
Go for term insurance plans that have lowest charges as this will lead to lower premiums for the same cover.
You can make your term insurance plan more comprehensive with add-on covers at minimal cost. An add-on cover or rider offers benefits over and above the basic policy. You can attach add-on covers to your term insurance plan. Some of the popular riders are critical illness cover, waiver of premium etc.
The Internet has made buying term insurance plans very less time-consuming and convenient. And online term insurance plans are also a cheaper option as there is no intermediary and cost is passed on to policyholders.
Read more details here- Step by Step Guide to Choosing the Perfect Term Insurance Plan
The answer to your query cannot be as simple as “X Term Insurance Plan” from “ABC Insurance Company”.
You will have to pick and choose the correct and best insurance plan for yourself based on your needs. It cannot be as generalized as ‘my friend has this term insurance plan, so it will also be best for me too’. You are different from your friend, the plan that meets his needs may or may not satisfy your needs.
In today’s competitive market of life insurance, term insurance plans are available online. You must compare all the term plans available online. But, before comparing the plans, one must make an informed choice about what a particular term insurance plan is offering and whether it satisfies their needs.
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Let’s have a look at a few pointers that can help you in choosing the best term insurance plan:
Life Cover: The life cover amount you choose should replace the loss of income equal to your current and future earnings. As a thumb rule, you should choose a life cover amount equal to or more than 10 times your annual income.
Coverage Options: Today’s term insurance plans provide you with a plethora of choices on your life cover. You can get yourself covered through one of the following plan options:
Level Term Cover: Under this option, the life cover that you select remains fixed for the entire plan duration selected by you. On a sad demise, your family is paid this cover amount.
Increasing Term Cover: This option is best suited for you if you are concerned about inflation affecting your cover amount. Under this option you get an increasing cover i.e. your life cover amount increases by 5% or 10% p.a. On your death, the increased life cover amount is paid to your family.
Joint Life Cover: You can also cover your spouse under the same term plan through Joint Life Option.
Enhanced Life Stage Cover: If you want to increase your coverage amount in future, you can opt for Life Stage Protection Option. Under this option, you can increase your life cover amount at important milestones of life like marriage, child birth, etc.
You also get Term Insurance Plans that offer inbuilt benefits like Accidental Death & Disability, Terminal Illness, Critical Illness, Total and Permanent Disability, Waiver of Premium, etc.
Death Benefit Pay-out Options: You can choose the manner in which your life cover would be paid to your nominees i.e. you can go for Lumpsum Pay-outs, Lumpsum + Annual Income/Monthly Income, Increasing Monthly / Annual Income.
Policy Term: You choose a policy term that best suits your needs, it can be as small as 5 years or as much as 40 years or even whole life. Ideally, you should get a term insurance plan that protects you till your retirement or till you have liabilities to pay off.
Premium Payment Term: You can choose the period for which you wish to pay the premiums. It can be either single, limited or even regular pay.
Premium Payment Mode: You can also select the payment mode i.e. annual, half-yearly, quarterly or monthly.
Comprehensive Coverage: You can get additional coverage for incidents like accident, disability and critical illnesses through riders.
Claim Settlement Ratio: You should select a plan from the insurer with high credibility. The easiest way to identify this, is the Claim Settlement Ratio as announced by IRDAI in their yearly annual reports..
Pocket Friendly: The final buying decision will always be based on how pocket-friendly is your chosen plan.
With so many choices, you can choose a comprehensive term insurance plan that not only takes care of your family’s future needs, but is also pocket friendly at the same time. If you are still confused and need an expert’s help and advice in choosing the right term plan, it is readily available here at Coverfox.com. Recently, Coverfox has launched 'Nominee Assistance Programme', a free of charge cohesive claims support service, which includes facilities like legal counselling, financial and psychological support.
Never forget that cheap may not mean best. You must rank your chosen product on the parameters discussed above. You can also go through the following articles to know more about term insurance plans and add-ons
LIC’s Amulya Jeevan – II, is a pure term insurance plan. It is one of the best and well known term plan, which provides the entire sum assured to the nominee in case of unfortunate death of policy holder during policy term on very low premium. This plan does not provide any maturity value. This policy cannot be purchased online.
Highlights and Benefits:
High Sum Assured plan with very low premium.
Very long tenure of 35 years can be chosen.
Income Tax benefits on the Premiums paid under Section 80 C, and as per Sections 10(10 D), tax benefits can be enjoyed on the claims as well.
Age of Entry: 18 to 60 years
Premium Paying Mode: Yearly and Half Yearly
Basic Sum Assured: 25 lakh and above
Other KYC Documents: PAN Card, Adhaar Card, Tax Details etc.
Medical Check Up with LIC’s authorized Doctors.
Check how this policy benefits at the tenure of 30 years for the age bracket between 22 to 40.
Plan today for your Family Future. “Think outside the box”
There are about 24 Term Insurance in India here are Top 15 of them with comparison with each other so that you can choose your best Term Insurance among them.
Life Insurance Corp. of India
Canara HSBC Oriental Bankof Comm. Life Insurance
Birla Sun Life Insurance
ICICI Prudential Life Insurance
IDBI Federal Life Insurance
Bharti AXA Life Insurance
Kotak Mahindra Life Insurance
Bajaj Allianz Life Insurance
Reliance Nippon Life Insurance
Check out this Thread to see Post on Term Insurance Plan for 40 year old, Also check discussion and suggestion for the same.