Are you also confused about choosing between different term insurance plans?
Mr Ranjan, 45, worked for an IT MNC and resided in Bangalore with his wife, two children, and parents. He had purchased a one-crore term insurance policy to cover his family’s financial obligations in his absence. Because of the frequent travel required for his job, he caught COVID-19, spreading to all his family members.
Mr Ranjan died due to numerous organ failures and oxygen deficiency, despite all attempts by medics to maintain his vitals steady. His family members healed from COVID-19, but they were heartbroken at his death.
The future may have seemed bleak with the family’s only earner no longer there. Still, happily, Mr Ranjan had told his wife about his term plan, and she subsequently made a claim request to the insurance provider, receiving a death benefit of Rs 1 crore.
Mr Ranjan’s family would have had no other source of money to operate their daily life or pay for their children’s schooling if he had not had his term insurance plan. Thus, term insurance is a valuable instrument for anybody who wishes to safeguard the financial obligations of their loved ones even after their death.
Nobody can anticipate the future, like in the preceding example, but we may prepare for it by recognising the risk factors. The COVID-19 epidemic sweeping the globe and claiming lives is a perfect illustration of how things may quickly turn unclear.
Only in such cases should you consider products such as term life insurance to secure your financial status for a brighter future. Let’s learn more about this useful financial instrument known as term insurance plans.
Best Term Insurance Plans in India
As noted below, we have chosen the seven best term insurance plans in India from top term insurance companies for you to pick and purchase the best term plan for your family in the year 2022:
1. Max Life Smart Secure Plus Plan
Max Life Insurance’s Smart Secure Plus Plan allows you to personalise comprehensive protection at a low cost by providing two different death benefit options.
It also offers many payout choices to fit the insured’s needs, including a lump-sum payment, monthly income payment, and payment in part as a lump sum and part as monthly income. Furthermore, it offers terminal illness coverage and restores all premiums paid at policy maturity.
2. Canara HSBC Life Insurance – iSelect Smart360 Term Plan
This term plan includes term insurance benefits such as a whole life cover option and allows you to customise your life insurance coverage depending on your changing lifestyle. You have the option to block your premium to help you beat inflation. If you choose Block your Premium option, the premium rate on your term insurance plan will be blocked for 5 years during which you can request for an 100% increase in base sum assured chosen at the inception of the policy.
The critical illness cover benefit will provide you and your loved ones with financial support should you fall ill. This coverage will help you to avoid being forced to take out expensive medical bills on your own.
3. Kotak e-Term Plan
It is a pure protection plan, and anybody between the ages of 18 and 50 (for limited pay-out until 60) or 65 (except for limited pay-out until 60) may purchase it. The plan’s minimum amount promised is Rs 25 lakhs. The Kotak e-Term plan provides premium payment options like monthly, annually, half-yearly, and quarterly.
It also has three pay-out options: instant payment, level recurring payout, and growing periodic payout. It also allows you to add riders for further protection, like the Kotak Permanent Disability Benefit Rider and the Kotak Critical Illness Plus Benefit Rider.
4. Tata AIA Maha Raksha Supreme
Maha Raksha Supreme by Tata AIA Life Insurance has an accelerator that offers up to a 50% sum guaranteed payment upon diagnosing any terminal disease. This plan also allows you to choose from various premium payment plans and riders.
5. LIC Tech Term Plan
It is a standard term plan that provides financial assistance to the insured’s family in the event of their untimely death. This term plan has various essential characteristics, including two death benefit options: Level Sum Assured and Increasing Sum Assured, a policy term of 10-40 years, and a maturity age of 80 years.
6. HDFC Click2Protect Plus
This comprehensive term plan provides three cover choices for the policyholder to choose from Life and CI Rebalance, Life Protect, and Income Plus. It has a feature that automatically adjusts death and critical illness benefits as you become older and provides full life coverage.
7. Bajaj Allianz Smart Protect Goal Term Plan
This plan provides death benefits at low premiums and maturity benefits by repaying premiums paid at the policy’s maturity. It also offers financial support if you are diagnosed with any of the plan’s serious diseases.
Factors to Consider Before Choosing a Term Insurance
- Assess your needs: Do you need term insurance plans or a money-back policy? Before purchasing an insurance policy, you must first determine its objective. Assess your current lifestyle and discuss your future objectives, goals, aspirations, and so on with your spouse; based on them, you will be able to simply choose the best term insurance plans that correspond with the flow of life.
- Know about the policy: Once you’ve narrowed it down to a few policies, spend some time reading about their features and term insurance benefits rather than depending on the information provided by the insurance salesperson or your friends. With all policy data accessible on the insurance provider’s website, gathering the essential information has become simple.
- Choose the riders: Riders are helpful add-ons that can be used to enhance the coverage of your basic policy and make it ready to handle more significant risks in your life. Although these riders are optional, they assist you in avoiding purchasing numerous insurance to cover different risks.
- Consider Claim Settlement Ratio (CSR): An insurance company’s Claim Settlement Ratio must be considered when selecting the best insurance coverage. It is the overall proportion of claims resolved by an insurer in a given year compared to the total number of claims received. A high CSR indicates that the insurance company processes claim requests on time, while a low CSR indicates that claim settlements are regularly delayed or refused.
Wrapping It Up
Before you begin your search for the best term insurance plans in India, we suggest that you thoroughly review all of the insurance plans and their term insurance benefits in the brochures accessible on their website.
