Guide To Select The Best Term Plan

Buying the best term plan in India is not as confusing as it looks. It is all about understanding different aspects of the term insurance plan. Beginners look for different clues to make a better choice. They often turn to those who have already bought the best term plan in India.

However, the market is continuously evolving. It is adding more features to provide as many benefits as possible to the customer. It is better to compare the price of one term plan with another, but this cannot be the sole factor to buy the best term plan in India.

The Guide

The article offers a guide for every type of customer to better understand how to select the best term plan in India.

1. Coverage

The best term plan in India will offer maximum coverage to the customer. Most insurance companies provide basic coverage. It is only a few that surpass them with their willingness to help a customer.

Coverage that has to be attached separately is Critical Illness. Look for it before finalizing the best term plan in India. The objective of getting critical illness attached to the term plan is to cover the treatment cost of severe illness that you or your family members would otherwise have to pay.

Having said that, don’t forget to read the basic coverages as well. An insurance company might be compromising with a small point to get you something else.

2. Settlement Ratio

The best way is to invite the plan from the maximum insurance company. This gives a better idea of which one is the best term plan in India. Look carefully for one detail that might be written in a corner. It is related to the percentage of claims that insurance has settled.

It must be on the higher side. A higher settlement ratio indicates that it is easier to claim the benefits. It also means that the insurance company has a great record of settling the claims.

The other way to get this idea in a better way is by directly comparing the number of claims that were settled against the number of claims that the insurance company received.

3. Additions

The term plan that is presented in the first instance is often not the complete package. The best term plan in India requires many more additions to be attached to the basic term plan.

A waiver on the premium is crucial. With this add-on, you can relax as the term plan would continue if you are unable to pay the premium further because of permanent disability.

Hence, reviewing the additions that you can make must be in the third position while selecting the best term plan in India.

Other additions include the benefit of income and accidental death. The benefit of income offers regular monthly income to your family members. This helps them to maintain their current lifestyle even after your unfortunate demise.

4. Solvency Ratio

The insurance company must also be in a position to settle your claims. This is decided by the solvency ratio of the insurance company. Every best term plan in India must carry the minimum solvency ratio of 1.5.

It has to be noted that the Insurance Regulatory and Development Authority, also known as IRDAI, has made it mandatory for the insurance company to make its solvency ratio available to every customer.

A better solvency ratio clarifies how well-positioned the insurance company is to offer the best term plan in India to a customer.

5. Premium Amount

The last stage is to check how much premium you will have to pay. Every factor mentioned above will be in your favour only if you have the liberty to pay a reasonable amount of premium.

Customers are also allowed to adjust the duration of the premium. This forms one of the great parts of the best term plan in India. You can decide the duration for which you want the premium.

The general idea is to keep it within the range of your working years. Once you retire, you get to enjoy your best innings of life with no financial responsibility.

It is important to familiarize with the compiled step-by-step guide to select the best term plan in India. A term plan, once purchased cannot be modified later in the future.