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How to Find the Best Term Insurance for Yourself?

Published On Aug 13, 2021 10:00 AM By Yamini Sharma

Term insurance is one of the basic life insurance policies. The major purpose of term insurance is to strengthen the financial security of the loved ones of the policyholders. On the death of a policyholder, term insurance helps the family (beneficiary/nominee) of the policyholder with a monetary benefit referred to as the death benefit. What’s best is that along with the life cover, term insurance also provides other benefits that grant additional protection to the policyholder as well as their family members. If you too want to ensure superior financial protection, make sure you have the best term insurance plan by your side. Here’s how you can find the best term insurance. 

Major Points to Keep in Mind to Find the Best Term Insurance

The key points include:

1. Coverage

The first step would be determining the amount of coverage you will need. Make sure you analyze the number of dependents, lifestyle requirements, personal goals, medical needs, age, current income, retirement needs, liabilities, financial capacity to pay premiums, policy term, inflation rate (present and future), and premium in mind to find out the financial payout that would be ideal for your loved ones. Always keep in mind that according to the thumb rule, getting coverage 8-10 times your annual income would be helpful. 

2. Features

Make sure you look for a term policy with flexible features. A flexible term plan that caters to your specific needs will help you ensure financial stability of your family members without making any compromises. For instance, you can choose a plan with flexible premium payment frequency and pay for the plan monthly, quarterly, yearly payments or in a lump-sum form as per your needs. Keep in mind that a good term plan will also let you choose when and how you would want your family to receive the death benefit. 

3. Riders

Pick a term insurance policy that offers additional riders to enhance your insurance coverage and receive utmost support through accidents, life-threatening diseases and other life incidents. 

4. Time 

Make sure you buy the right term insurance plan as early as possible. Remember, the younger you are at the time of policy purchase, the lesser the chances of making an insurance claim or bailing out of premium payments will be. Moreover, not only will your premium be less, but you will also get to reap the advantages of a vast array of features, benefits, offers and discounts.

5. Company CSR & Performance 

It is always a must to check the claim settlement ratio (CSR) and performance of the insurance company. Keep in mind that the higher the CSR will be, the better and more reliable the company in question will be. Make sure you check the turnaround time, quality of customer services, testimonials, and other elements to confirm about a term insurance company’s trustworthiness.

Keep these factors in mind to find a good term insurance. Make sure you use the term insurance calculator whenever required.  

You may also like to read - Avoid 5 crucial mistakes before purchasing a term insurance plan

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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