Term insurance is a pure form of life insurance. It allows you to financially cover your life in an economical fashion. You get a high cover at a low rate. This is mainly because the term plans do not offer anything in return – if you die your family gets the sum assured and the policy terminates. If you outlive the plan, there is nothing to expect from it. You must buy a term plan if you are looking for a reliable and affordable form of life insurance. However, it is important to compare term insurance before you make a purchase.
Guide to comparing term insurance
Like mentioned above, the term insurance plans need to be compared before you buy. Why is this necessary? Well, comparison allows you to locate and select the most appropriate and affordable plans. Take a look at the term insurance comparison guide mentioned below to know more:
- Check for the type of plan: When you start to compare term insurance, look for the exact type of cover you need. There are a few variants in term insurance – we have the term insurance with return of premium (TROP) plans, the increasing term insurance plans, the decreasing term insurance plans and most commonly, the level term plans. Understand what each type of term cover offers and choose your ideal plan carefully. Then, run a comparison between the correct kinds of term insurance plans.
- Look at the exclusions: Term insurance has certain exclusions. When comparing, make sure you take a look at all the exclusions. The plan you choose must have the fewest number of exclusions and should suit you perfectly.
- Assess the cover: The main aspect of a term plan is the cover. Look at the cover and the cost of each policy when you compare term insurance. This will help you locate the most appropriate term life cover for yourself.
- Check the insurer’s record: Last but not the least, you need to see how well your chosen insurance provider fares. Compare the claim settlement ratios of the different insurers to see who the most efficient insurer is. This will help you in an overall manner and also benefit your nominees at the time of a claim.
Term insurance: Plans, benefits, features
Now that you know how you can find the best term plan, let us take a more detailed look at the benefits and features of the term insurance:
- Affordable: The biggest benefit of term insurance is that it is affordable. You can get a term cover of INR 1 crore for a monthly premium of just INR 500! Yes, term insurance actually is that cheap and hence affordable for everyone.
- Easily available online: Term insurance is unlike the other forms of life insurance in the way you can obtain it. Most of the term plans are easily available online. You can buy them at any time of the day or night and that too while comfortably sitting at home.
- Long term cover: You can buy a term plan today and stay covered for more than 50 years! Yes, that is correct. Term insurance is available for very long durations of time and allows you to keep your life covered for an extended period of time.
- Fixed premium: The premium of the term life insurance plan gets locked in for life when you buy the plan. This means that if you buy the plan at a premium of INR 500 a month today, you still have to pay the same premium even 30 years down the line.
- Easy claim process: If you are honest while buying the term plan and your nominees can furnish the correct documents at the time of a claim, the claim will be paid out without any issues. The term insurance claim process is simple and hassle free.
The final word
As we saw, term life insurance is a feature-loaded type of life insurance that offers many benefits. You must get a term cover for yourself. However, it is important to compare term insurance and then choose the most appropriate plan. Keep the tips mentioned above in mind and you won’t have any difficulties choosing your ideal term insurance policy.