Tips To Buy Affordable Term Insurance Plans
Updated On Aug 11, 2022
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Term insurance is a type of life insurance that provides protection for a specific period of time, usually 10, 20, or 30 years. This makes it a good option for people who are looking for temporary coverage or for those who want to save money on their life insurance premiums. There are a few things to keep in mind when shopping for term insurance plans. Make sure to compare quotes from different insurers to get the best rate. It's also important to understand the terms of the policy and what it covers.
Why Do You Need Term Insurance?
Most people understand that life insurance is important, but many don't realize the importance of having a term life insurance policy. Term life insurance is one of the most affordable and effective ways to protect your loved ones in the event of your death. Here are four reasons why you need term insurance:
1. It's Affordable
Term life insurance is one of the most affordable types of life insurance available. For a relatively small monthly premium, you can have peace of mind knowing that your loved ones will be taken care of financially if you die.
2. It's Flexible
Term life insurance policies are flexible, which means you can choose the coverage amount and length of time that best suits your needs. You can also usually convert a term life policy to a permanent policy if your needs change.
3. It's Easy to Understand
Term life insurance is pretty straightforward - if you die during the term of the policy, your beneficiaries will receive a death benefit payout. There are no complicated investment components or riders to worry about.
4. It Provides peace of Mind
Perhaps the most important reason to have term life insurance is for the peace of mind it offers. Knowing that your loved ones will be taken care of
Factors To Consider While Buying Term Insurance
When it comes to buying term insurance, there are a few factors that you need to take into consideration. This will help you get the most affordable policy possible.
Death Benefit
This is the amount of money that will be paid out to your beneficiaries in the event of your death. Make sure that the death benefit is large enough to cover all of your final expenses and provide for your loved ones.
Premium
The premium is the amount of money that you will pay each month for your policy. Make sure that you can afford the premium payments and that they fit within your budget.
Policy Term
The policy term is the length of time that your policy will be in force. Most policies have a term of 10, 20, or 30 years. Choose a policy term that fits your needs and budget.
Riders
Riders are optional benefits that you can add to your policy for an additional cost. Some common riders include accident forgiveness, waiver of premium, and accelerated death benefits. Choose riders that fit your needs and budget.
Insurance Company
Make sure that you choose a reputable and financially. You must also check the claim settlement ratio of the insurance provider for the last 3-5 years to get an idea how they handle claims.
Best Term Insurance Plans In India in 2022
Following is the list of the best term plans which you must consider while selecting the right term plan for yourself -
1. SBI Life eShield Term Plan: This is a comprehensive Term Insurance plan that offers death and total permanent disability benefit of up to Rs. 1 crore. It also offers critical illness cover of up to Rs. 10 lakhs. The premiums start at Rs. 9 per day for a sum assured of Rs. 1 crore.
2. LIC Jeevan Akshay VI: This is a non-linked guaranteed return plan that provides death benefit of the sum assured plus accrued guaranteed additions, in case of death during the policy term. The policy term can range from 5 years to 20 years. The sum assured starts from Rs. 2 lakhs and goes up to Rs. 5 lakhs. The premium starts from Rs. 2,880 per year for a sum assured of Rs. 2 lakhs with a policy term of 5 years.
3. Max Life Online Term Plan Plus: Max Life Online Term Plan Plus offers many benefits such as 100% of the sum assured, and it has a death benefit that is twice the sum assured. The policy also offers a maturity benefit, which pays out the sum assured plus bonuses if the policyholder lives to the end of the term. This is a non-participating online term plan that offers death benefit and critical illness cover.
Conclusion
There's no single "right" way to buy affordable term insurance, but there are a few things you can do to increase your chances of finding a good deal. First, make sure you understand what you're looking for in a policy. Second, compare quotes from multiple insurers. And third, don't be afraid to negotiate with insurers on price. By following these tips, you should be able to find an affordable term life insurance policy that meets your needs.
Also read: Disclosing Top Reasons To Get Term Insurance Till 60 Year Of Age
