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Introduction

Human life is full of vagaries with an absolute potential to halt its peace and calmness at any time. In this struggle against the uncertainty of life, securing our family’s well-being even in your absence is on the top of your mind, and every day of your life goes into building a financial safety net for your loved ones. One such safety measure is buying a term insurance plan that can provide substantial financial security to fulfil your family’s future needs in the event of your unfortunate demise. In a quest to purchase a term insurance plan, you need to differentiate one term plan from another and evaluate which term life insurance is the best for your requirements.

Facts on Buying a Suitable Term Insurance Plan

Once you have the clarity to buy a term plan, it is vital to decide which term plan is the best to cater to your family’s financial goals, and this task is easier said than done. The insurance market is packed with several term insurance plans - in variety, number, and quotations, making it confusing to decide which term insurance is the best to fulfil your financial needs. Here are a few facts that can assist you on which is the best term insurance plan for your requirements:

  • Look out for Sufficient Coverage

The coverage amount of the term insurance plan depends on parameters such as your income, future financial goals, number of dependents, debts, and inflation. So, the basic thumb rule of the term plan coverage being 10-15 times the annual income may or may not suffice on a case-to-case basis. So, here’s how you can calculate the term plan coverage to decide which term life insurance is the best for you:

Term Plan Coverage Amount = {F + C + D} - S

Where

F = Family’s lifelong expenses factored with inflation rate until your retirement age

C = Cost of Future Financial Goals

D = Debts or Loans

S = Savings

  • Select the Required Tenure

Tenure is the most important factor to consider while choosing a term plan. A term insurance cover should ideally be active at least till retirement age or until he/she has financial responsibilities or liabilities to fulfil or if the insured chooses to leave a financial legacy for his/her kids.

So, a pure term insurance plan with lifelong coverage would be the right choice if you want to financially safeguard your family with a lump sum death benefit amount, after your sudden demise.

However, you can also look for a term plan with a tenure of 10 or 20 years by the end of which you are confident of fulfilling your family’s goals like children’s higher education or paying off loans. This coverage ensures that your financial responsibilities are taken care of by the insurer even if you happen to not be around during the plan’s tenure.

  • Decide on an Affordable Premium

Opting for a term insurance plan at an early age gives you the advantage of lower and affordable plans. For instance, if you are a non-smoker who intends to buy a term plan at the age of 25, the annual premium charged for a cover of Rs. 1 Crore would be Rs. 7,500 until your turn age. But the same term cover for a 45-year old smoker shall cost him an annual premium of Rs. 15,000.

Moreover, it is key to note that the term plan premium remains constant throughout the tenure. So, you shall continue to pay throughout the tenure, the same premium amount that you paid at the time of its purchase. So, an affordable premium is one of the markers to decide which term plan is the best. Comparing insurance quotes of several insurers can lead you to an insurer offering an affordable term insurance premium.

  • Claim Settlement Ratio

The claim settlement ratios of all insurers offering term insurance plans regularly feature in IRDAI’s annual report. Besides, you can also go through the websites of respective insurers to verify their claim settlement ratios in the past several years and decide on which is the best term insurance plan on offer. Insurers with a robust and consistent claim settlement ratio over the years get an iAAA rating, signalling that they are a good choice to approach for the purchase of your term plan.

  • Assess the Riders

Riders are a valuable addition to the term plans. Purchasing riders in addition to the term plan can enhance the basic coverage of the regular term plan. For instance, opting for a critical illness rider shall make you eligible for payouts from the insurer if you are to be detected with a specified critical illness during the policy term which is hard to even imagine in the case of a regular term plan. Similarly, you can choose from other rider options like waiver of premium rider, accidental death benefit rider based on your lifestyle and needs.

Benefits of Best Term Insurance

The best term insurance plan must ideally provide the following benefits:

  • Whole Life Cover

An extensive coverage up till the age of 99 years is a prime benefit of the best term insurance plan.

  • Flexible Premium Payment

The best term insurance plan is not just the one that provides affordable premiums but also offers the flexibility to pay them either monthly/half-yearly/annually.

  • Coverage for Disability or Death

Riders such as accidental death benefit and accidental disability provide a death benefit or sum assured to the nominee in case of the death or permanent disability of the insured during any future mishaps.

  • Critical and Terminal Illness Coverage

The best term insurance plan is one that offers a lump sum benefit to the insured in case of diagnosis of a critical or terminal illness as specified under its terms and conditions.

  • Tax Benefits

Premiums paid towards the best term insurance plan are eligible for tax deduction under Sections 80C and 80D of the Indian Income Tax Act, 1961. Also, any sum assured or death benefit received by the nominees is exempt from taxation under Section 10 (10D) of the Income Tax Act.

Process to Purchase A Suitable Term Plan for you at Finserv MARKETS

At Finserv MARKETS, you can now purchase the best term insurance plan to suit your financial needs and goals through the process given below:

  1. Visit Finserv MARKETS at www.bajajfinservmarkets.in

  2. Go to Insurance -> Term Insurance and Click on the ‘Get Term Plan’ button.

  3. Choose for whom you would want to purchase a term from the options of self, self+spouse, self+child.

  4. Fill in the needed details like gender, age, income, educational qualification, occupation, and smoking habits.

  5. Click on the ‘Show Plans’ button.

  6. Choose from one of the cover options and add any riders, if necessary, and click on the ‘Buy Now’ button.

  7. Enter the required details like your name, date of birth, PAN, gender, and pin code.

  8. Proceed to make the payment and download your term insurance plan copy.

Conclusion

With the above information, you can be confident in deciding which term life insurance is the best for your financial goals. Buying a term insurance plan online from trusted financial portals such as Finserv MARKETS provides comprehensive coverage at premiums that weigh light on your pocket. With their proven claim settlement record, you can now enjoy a host of benefits that their term insurance plans have to offer.

FAQs

  • ✔️How can I pay my term insurance premiums on Finserv MARKETS?

    On Finserv MARKETS, you can make your premium payments through any of these modes – Cash/cheque, Cards, Net banking, ECS and NEFT.

  • ✔️What are the premium payment options available for term plans?

    Term insurance premiums can be paid by choosing any of these options – regular premiums, limited pay premiums, or single premium.

  • ✔️What are the various riders that I can choose along with my term insurance plan?

    Some common riders that you can opt with your term insurance plan are – Accidental death benefit rider, accidental total permanent disability rider, waiver of premium rider, and critical/terminal illness rider.

  • ✔️Can I choose Accidental Total Permanent Disability and Critical Illness benefits together?

    It is not possible, as critical illness riders include the benefit for accidental total permanent disability.

  • ✔️Is it possible to opt for a waiver of premium rider along with a Whole Life term cover?

    No, the policyholder can choose only on these two options.

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