Term insurance plans are the most basic financial requirements since they cover the risk of premature death. As such, term plans ensure that when you are not around, your family is financially provided for.
So, while buying a term insurance plan is necessary, it is also necessary to ensure that you buy the best policy. The best term insurance policy can be found through some research. Here’s how-
1. Go online and compare the available plans
The online medium allows you to compare the available plans and find the best one. You can compare insurance online and find out the term insurance options that you have at your disposal. Once you see the options, you can compare insurance online to find the best policy.
2. Check the coverage benefits
When comparing, check the coverage benefits offered. All term plans pay a death benefit. However, modern-day term plans have enhanced their scope of coverage by offering inbuilt riders and various plan options. So, check the coverage options provided. See if the plan offers the coverage benefits you need and whether you can customize the coverage as per your requirement. A flexible and customizable term plan would be the best bet since it would allow you to tailor the plan according to your needs.
3. Check the premium
Once the coverage benefits are selected, check the term insurance premium. However, make sure that you check the premium vis-à-vis the coverage selected. Term insurance premiums depend on the coverage and the pricing policy of the insurance company. If the coverage is uniform, you can compare the premiums fairly and select the best deal.
4. Check the term and premium payment frequency
It is recommended to opt for the maximum tenure when buying term plans. So, check the term offered. If available, opt for whole life protection for guaranteed coverage. Also, check the premium paying frequency, i.e. whether you have to pay premiums regularly, for a limited premium or in one instalment. Choose a frequency that best suits your pockets.
5. Check the CSR of the insurer
CSR stands for Claim Settlement Ratio. It shows the percentage of claims settled by the insurance company in one financial year. The higher the ratio, the better is the company since it shows that the company settles the maximum of its claims. Compare the CSR of insurers and try and choose a company that has the highest CSR so that the probability of claim settlement increases.
6. Look for riders
Riders are additional coverage benefits that can be added to the base plan for better protection. Look at the riders offered by term plans. Try and opt for a plan that offers a range of rider benefits at low premiums so that you can add the riders to make the coverage exhaustive.
If you research online term insurance plan using these factors, you can find the best policy available in the market. Opt for a high sum assured so that you can provide an optimal corpus to your family in case of your sudden demise.