A Comprehensive Guide on the Best Term Insurance Plan in India

In today’s unprecedented time of the COVID-19 pandemic, a family’s health & financial wellbeing is of paramount importance. And while you may not always be around to look after your loved ones, a term insurance plan can be highly beneficial in assisting your family in time of need. So, how do you make sure that you get the best term insurance in India at an early point in your life so that you can live a carefree life without having to think about the financial security of your family? 

Let us walk you through the best term insurance in India and everything you should know about it.

So, first things first. What exactly is term insurance? Term insurance is a pure life insurance product that aims to provide coverage for a predetermined time or through a specified ‘term’. In the event of the death of the insured during the ‘term’, the beneficiary becomes eligible to receive a death benefit in accordance with the chosen term insurance plan. Now that you’re acquainted with what term insurance is, keep reading so that you can get a robust COVID-19 term insurance and reap benefits of the best term insurance in India. Let’s dive into the details so you know which term insurance caters to your specific needs.

Distinct types of term insurances available

There are typically five types of term insurance plans that you can lookout for while opting for a pure life cover policy:

1. Level Term Plan/Basic Term Insurance Policy

Under this type of term insurance, the insurer is under an obligation to provide a death benefit to your beneficiary in the event of your untimely demise. However, you are not entitled to any maturity benefits if you survive the term of the policy.

2. Increasing Term Insurance Plans

With this type of term insurance plan, your sum assured amount keeps growing with time. Though there may be a maximum cap to the death benefit sum assured amount, this type of term insurance provides no maturity benefits. 

3. Decreasing Term Insurance Plan

In a decreasing term plan, the amount of death benefit gradually keeps on decreasing (as a percentage) as the policy term moves closer to its expiry. Generally, the premium of such plans is on the lower side as they are bought to cover debts or loans.

4. Term Insurance Policy with Return of Premium 

In this plan, you are eligible to get the refund of the premiums you paid during the tenure of the policy after its expiry. This term policy provides a life cover while refunding your premium as a maturity benefit.

Recommended: Should You Buy A Term Insurance Plan In Your 50s?

Factors to consider while choosing a term insurance 

1. Product Details and Sum Assured

While selecting a term insurance, check if the features and benefits of the policy resonate with your requirements. A term insurance isn’t a one-size-fits-all policy, and one should always thoroughly go through the terms and conditions and check if the sum assured amount payable to your beneficiary is suitable for you or not. 

2. Claim Settlement Ratio

Claim Settlement Ratio simply tells you about the number of claims settled against the number of claims filed with an insurer for a particular year. This number gives you an estimate of the probability of your claim settling with a particular insurer. One must look for a company with a high claim settlement ratio to avoid hassles at the time of settling. 

3. Maturity Age & Tenure

The time period after which your policy expires is called as its maturity age. Most policies generally age at 75years, however there are options available from different insurers that offer coverage up to 80 years or more. The time period for which the policyholder gets coverage is known as the tenure of the term insurance. The tenure of a term plan can vary between 10 to 40 years. Therefore, one must seek the maximum possible tenure that an insurer allows to get the maximum advantage of the life cover.

4. Rider Benefits

A rider is an attachment with your term insurance plan that gives you additional coverage over & above basic insurance benefits. It is vital to check if the insurer is providing valuable rider benefits. Insurance riders like accidental death, critical illness & permanent disability are an important part when it comes to choosing the best term insurance in India.

Now that you have a fair understanding of term insurance and why it is a crucial step towards your financial wellbeing, make sure you plan for tomorrow and enjoy today by selecting the best term insurance in India. Make sure to select a policy which offers protection against COVID-19. If you are planning to buy a term insurance now and are confused amongst the plethora of insurers and their offerings, considering Max Life Insurance for COVID-19 term insurance and best term insurance in India should be your way to go ahead!