Things to Check while buying a Term Life Insurance Plan

Life is uncertain, and no one knows what destiny has planned for us. We live in an era where our lives are getting more unsafe with every passing day and its high time you secure your life and the ones you love with insurance, Term Life Insurance to be precise. Most families in India depend upon one earning person for all their needs and wants. If something were to happen to that person, then the whole family suffers a financial crisis, and a term insurance plan can help dodge that scenario.

What makes Term Life Insurance different?

Term life insurance is a type of life insurance where the insurance company (the insurer) pays the nominee after the death of the insured, during the term of the policy. It is perfect for those who want to meet the financial needs of their family, just in case of any tragic events. Not to be confused with permanent life insurance, which provides maturity and survival benefits along with the death benefits.

What are the benefits?

Term Insurance has a lot of benefits attached to it. Here are the things you need to check before you settle on an insurance plan.

The Coverage – One thing that you need to keep in mind while buying a term life Insurance plan is that you need to check the coverage of the plan. Coverage is the time span under which the term insurance contract is valid. Depending upon your plan, your insurance plan can even cover you till you turn 99.

Tax Benefits – This is one benefit that encourages people to take the leap of faith. Just like the other forms of life insurance, term life insurance qualifies as a tax deduction under section 80C of the Income Tax Act, 1961.
Critical Illness Benefit: Some insurance companies covers and provides protection against critical illness for a small additional premium.

Affordable premiums – Term life insurance is incredibly affordable, making it perfect for working class people. With so many plans to choose from, it has become easy for someone to find the perfect insurance plan that meets all your needs.

Additional Benefits – Term Insurance comes with a lot of additional benefits like adding accidental benefits to your already purchased term insurance plan or adding the critical illness benefit to your plan.

Extras – Apart from the ones mentioned above, you also get some extra benefits like the disability coverage wherein the insurer will waiver the premium in case of a critical injury or disability.

How to choose a Term Life Insurance Plan?

Choosing a term insurance plan is not as hard as it sounds, provided you do proper research before you select one. There are the things you must see before finalising an insurance plan.

The Claim Settlement Ratio – This ratio shows how the number of claims settled by the insurance company in the past. The higher the ratio is, the more reliable the insurer is.

Flexibility – You must make sure that the plan you select must be flexible enough to fit in some changes like adding accidental covers or critical illness covers after the purchase of the plan.

So, those were some of the things you must remember while finalising your insurance plan. If you want to secure the life and future of those you love, term life insurance is your safest bet.