The need to buy an insurance plan is understood by everyone, but which plan to buy and how to select the best term insurance plan is confusing for most people. Out of so many options, it becomes a task to choose the best one that meets your requirements.
To make things simpler for you, here is a list of factors that you need to keep in mind while going through various options:
The first consideration should be about your priorities. It depends on how much income you have, your liabilities, dependents in the family and overall savings. In the event of unfortunate death, your family should get enough of a financial cover to tide through the crises, at least financially. The insured amount should ideally be about 10 times of your annual income. However, factors like loans, future goals, children’s education and marriage plans, etc. should also be considered while selecting the life cover in an insurance plan.
2) Period Of Term
The tenure of the policy is also an important factor to be considered. You should buy a policy that covers you till you retire from your current age. Having an insurance cover that lasts for 30 years is an ideal plan to take care of any financial obligations. The best term insurance plans in India do come up with long term plans for your benefit; it’s better to start when you’re young to pay lower premiums.
Inflation slowly reduces the value of your investments over a period of time without you even realizing about it. It is of utmost importance to select a policy that offers to raise the coverage amount by 5-10% every year to counter inflation during the policy tenure.
It is not enough to go for a plan with the lowest premium. The best way is to compare term insurance policies thoroughly online and go through their terms and conditions in detail. Log on to a website like www.suggestinsurance.com that offers you a platform to find out everything about all Term insurance products offered by all the players in the market. Enter your basic details like gender, age, smoking habits, location, etc. and based on that an approximate premium will be calculated for you. A few plans will match your requirements. Term insurance comparison them all and only once you’re satisfied with a particular plan that offers maximum benefits with lower premiums should you go ahead to buy it.
5) Background Information
Once you have selected the term plan and finalized the insurance company, before buying it do a thorough research on the insurance provider to understand their market standing, their financial strength, the customer service they are offering and most importantly their claim settlement ratio. It doesn’t matter if a company is selling the best term insurance plans in India if their customer services are not sound enough or claim settlement ratio is lower than the industry average/standards. You need to be sure that the company will honour its commitments at the time of need, and your family members won’t have to run around to claim what is rightfully theirs.
Gone are the days to deal only with your neighborhood insurance agent and be aware of only limited information. This is the era of technological advancement where you need to go online, find out about insurance products, compare term insurance policies on your own and then select the one best suited to your needs.