A Beginner’s Guide to Choosing the Best Term Insurance Plan in India

We are familiar with the fact that being financially prepared for the future is essential. A considerable savings fund, reserves and investment portfolio are vital for that. But we are missing out on one product – a term insurance plan.

A term insurance plan is one of the most underrated financial products, even though it is the need of the hour. The best term insurance plan in India can promise a family financial safety after the unfortunate passing away of the insured.

Whether you are in your 20’s, 30’s or 40’s, life insurance is crucial. The best term insurance plan in India, the most basic type of life insurance, can be a dependable way of financially securing your loved ones. 

So, if you are wondering about insurance, here is a guide to help you choose the best term insurance plan in India. 

Tips to Find Yourself the Best Term Insurance Plan in India

1- Evaluate your Family’s Financial Needs

The death benefit offered by the best term insurance plan in India should be adequate to meet your family’s basic financial needs. Hence, you need to estimate a number that would suffice. Don’t let the number be a random figure you just thought would be it. 

Consider your family’s financial goals, aspirations, and annual expenses to calculate the sum. In addition, it will also be advisable to take the help of a term life insurance calculator. It gives you an estimate of the premium you pay according to your age, financial goals and preferences, among other factors.

2- Prefer Going for a Customized Plan

Most life insurance companies allow you to make customizations in your plans. Consequently, you tailor your plan as per your financial preferences to make it the best term insurance plan in India for you. Going for insurance companies that provide you with this feature is advisable.

3- Choose the Right Riders

Insurance riders might come at an additional nominal cost, yet they offer significant benefits in the long run. They can help you save more and avoid financial catastrophes in specific events. For instance, most insurance companies provide a waiver of premium along with their basic term insurance plan. This rider would spare you the trouble of paying future premiums if you are diagnosed with a disability that would negatively affect your employment abilities. 

However, these riders differ according to insurance companies. While an insurance company might offer you one rider, the other might not. Therefore, checking whether the plan offers you the rider of your choice is essential. Remember, the best term insurance plan in India is the one that gives you the benefits you are looking for as an insured or policyholder. 

4-Choose the Right Type of Term Insurance Plan

Once again, the best term insurance plan in India should meet your financial goals. There are two types of term insurance plans that cater to the different financial needs of different individuals. If you only want to ensure financial assistance for your family during your absence, the basic term insurance plan offering only death benefits is ideal.

However, if you also have wealth building and savings in mind, you can go for TROP. The Return of Premium, also known as TROP, is a type of term insurance plan that offers a survival benefit to the policyholder in terms of the total premium paid by the policyholder. In simpler words, the premium is paid back to the policyholder as a survival benefit. The survival benefit is paid to the policyholder if they survive the policy term. Given that TROP offers survival benefits, this type of term insurance is slightly on the higher end of the price line as compared to the basic term insurance plan.

5-Look at the Claim Settlement Ratio

Brand matters – even when you are buying term insurance. The best term insurance plan is also the one that comes from reputed insurance companies. To check if the insurance company is decent, you must check the company’s claim settlement ratio. It is the proportion of claims settled v/s the claims filed. A high claim settlement ratio would increase the possibility of claim settlement and promise a smooth claim settlement process. 

Final Thoughts

When it comes to securing your family’s financial future, the best term insurance plan in India is the best way to do that. It is an essential purchase – no matter how old you are, and no matter how fit you are. 

If you still need to purchase the best term insurance plan in India, today can be an excellent day to make the necessary purchase. Remember to use a term life insurance calculator before you proceed with the purchase.


About Author


Please enter your comment!
Please enter your name here

fourteen − 3 =