5 Tips on How to Choose Best Term Plan in India

We all want to make sure that our loved ones are financially secure in case anything were to happen to us. Having an insurance policy that covers the financial needs and future aspirations of your family is a must.

A term insurance plan makes sure that your family receives benefits in case of your untimely death during the policy tenure. Ideally, term insurance is known to offer death benefits only. But to enhance the scope of the policy, insurers in India offer a wide range of term insurance plans. We understand that having to choose from a plethora of options is quite a daunting task.

Hence, we will be discussing how you can choose the best term insurance plans from the ones available in the market.

Factors to Consider when Choosing the Best Term Plan

1. Claim Settlement Ratio

Every insurer in India has a claim settlement ratio and is available on their website. It gives a percentage of claims settled from the total number of applications received by the insurer in the given financial year. It is advisable to choose an insurer with a high claim settlement ratio so that your loved ones will be able to file a claim request without any hassle upon your death.

As explained earlier, term insurance secures the financial future of your family members in your absence. So, the insurer you choose to buy the policy with should have a high claim settlement ratio as the chances of your claims getting approved become high.

Similarly, it is essential to check the total number of claims settled by the insurer in the given financial year. The claim settlement ratio becomes a significant factor to consider only when the insurer pays a substantial number of claims.

2. Solvency Ratio

Solvency ratio helps you understand whether the insurer that you have chosen is financially capable of settling your claims in times of need. As per the Insurance Regulatory and Development Authority of India (IRDAI), each insurer in India should maintain a solvency ratio of at least 1.5.

This ratio comes in handy when a significant number of claims are made in a brief period. For instance, in case of natural disasters, the claims made will be high and need to be settled as soon as possible. In such a situation, the solvency ratio comes in handy.

The future financial security of your loved ones is dependent on the financial stability of the insurer. Ignoring the solvency ratio would mean compromising on your family’s future.

3. Critical Illness Cover

As we all know, basic term insurance plans only offer death benefits. To enhance the benefits of the policy, insurers also provide critical illness benefit. It is an add-on cover that enhances the scope of the policy.

So, in case you (the policyholder) acquire a listed critical health condition in the future, the policy will pay out a percentage of the sum assured amount. The amount received can be used for your treatment and hospitalisation expenses.

Moreover, having a critical illness cover on your term insurance plan offers tax benefits. The premiums paid towards this cover can be claimed for tax deduction under Section 80D of the Income Tax Act, 1961. 

4. Additional Rider Benefits

To make term insurance more flexible for the consumers, insurers offer several rider benefits. Some of these include - 

• Waiver of premium benefit

• Accidental death benefit

• Return of premium benefit

• Income return benefit

Note that you will have to pay additional premiums over and above your existing premium rate if you opt for any of the additional rider benefits.

5. Premium Rates

Ideally, a basic term insurance plan is the most affordable life insurance product available in the market. But when you opt for rider benefits, the premium cost may slightly increase. Hence, it is advisable to compare the term insurance premiums offered by different insurers. You can use a term insurance premium calculator to understand the payable premium prices on your chosen term plan. That way, you will be able to select a term plan that is affordable and fulfils your needs.

6. Decide Coverage Based on Your Needs

The sum assured amount you choose should be sufficient to cover the needs of your family members after your death. The right coverage should be selected based on your current financial needs, expenses, and future financial objectives. Evaluating these factors will encourage you to choose the right term insurance plan to safeguard your family's future.

If you are looking for a term policy, consider buying Term Insurance Plans at Bajaj Markets.

Why Bajaj Markets has the Ideal Term Plans in India

The reasons you should buy Term Insurance Plans at Bajaj Markets are as follows -

• You get extensive financial security for your loved ones in case anything were to happen to you.

• The plans available are quite affordable and offer a high sum assured amount. Because of this, you and your loved ones can achieve their future financial goals with ease.

• You can customise the chosen term plan to suit your needs.

• The claim settlement ratio is high, and the insurer’s claim settlement process is quick and hassle-free. Note that your claim application will be assessed by Bajaj Allianz Life Insurance.

How to Buy?

Follow the steps below to buy term insurance plans at Bajaj Markets online.

1. Design the plan that you think will best suit your needs.

2. Review the plan thoroughly

3. Pay the premiums online

4. Upload the requested documents

5. The insurer will access your application

6. Upon approval, the policy will be issued to you instantly

Conclusion

Term insurance ensures that your family is protected financially, even after your death. Make sure that you are comparing different term insurance plans based on the five aspects mentioned above as it will help you choose the right policy. Moreover, you need to have a fair understanding of term insurance benefits before you buy the policy online.

So, read about term insurance benefits at Bajaj Markets online and secure the financial future of your loved ones.