Buying an Affordable Term Insurance with Good Cover

2024-08-02

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In today’s day and age, the uncertainties of life and the risk of an untimely death has become more relevant than ever. That being said, the situation becomes much worse for a family, which has to deal with the untimely demise of their breadwinner. The loss of the breadwinner would mean that the grieving family will not only have to deal with the emotional turmoil of losing their beloved, they would also be thrown into a significant financial crisis, with no viable source of income.

As the breadwinner for your family, you cannot depend upon your savings alone to take care of your loved ones in your absence. You must ensure that the family remains secure against life’s uncertainties with a robust financial safety net – in the form of term insurance cover. With an affordable term life insurance plan that promises a significant cover, your grieving family will not have to deal with any financial insecurity. Before we describe how you can purchase the best term insurance plan with excellent insurance coverage for your loved ones, let’s look at various aspects of a term plan.

How does Term Life Insurance work?

Once you decide the term insurance policy term and the coverage amount, you can check the premium payable for the desired coverage online. Here the premium payable is calculated based on various factors such as your age, health, lifestyle habits, coverage amount, and coverage tenure. While you can decide to pay the premium either at regular intervals or in one go, you have the flexibility to determine how your family would receive the coverage amount if something happens to you.

Given that term insurance plans (except for the return of premium term plans) essentially do not offer any insurance benefits to the policyholder upon maturity, the premium payable for therm insurance plans is usually lower than other life insurance plans. At the same time, the premium amount increases with age – the earlier you purchase the term insurance cover, the lower premium you will have to pay.

Tips to Get the Best Term Insurance Plan Cover for Your Family?

Nowadays, the sheer number of term plans and their variants is enough to confuse an average insurance buyer. Navigating this maze of term insurance policy options, with their varying policy terms, features, benefits, and sum assured amounts can become much easier if you keep the following tips in mind –

1. Review the Claim Settlement Ratio of the Insurance company

When picking a term insurance policy, it is advisable that you take a good look at the insurance company’s reputation and claim settlement record over the years. Since a term insurance policy coverage requires a long term commitment on your part as the policyholder, you need to be sure of the insurance company’s ability to support your family in your absence. For this, you can use their claim settlement ratio CSR as a metric to gauge their stability and reliability.

The claim settlement ratio of an insurance company indicates the number of insurance claims paid out by the company for every 100 claims received. The higher the CSR is, the more favorable is the insurance company’s chances of settling your insurance claim.

2. Buy Term Insurance Protection at an Early Age

The amount of premioum payable and the available options for coverage amount under a term life insurance plan predominantly depend on the age at which you purchase the plan. Buying a term insurance plan when you are young can help you save much on the premium amount payable while optoing for extensive policy coverage. As the age progresses, the available coverage options get lesser while the premium payable against them increases.

3. Determine your Life Cover Accurately

The desired coverage amount under the term isnruance plan can only be sufficient if it matches the present and future needs of your family and yourself. When buying a term plan, it is imperative that you assess the life cover amount based on your existing financial liabilities, the number of dependents you have, your financial goals, and how much money you need to achieve them. Once you have an amount in mind, make sure that you choose a more extensive coverage.

4. Compare and Buy Term Insurance Online

With the Internet penetrating to every nook and corner of our country, it has become much easier to compare term insurance plans online, based on their features, benefits, and premium payable before choosing one that aligns with your needs. Buying term insurance plans online is not only much cheaper due to lack of intermediary costs such as the agent’s commission, but you can quickly complete the insurance application and avail of quick policy issuance without any hassles.