Having a family is one of the most precious things that you can have. And to keep our family in the best state, we do a lot of things. From taking care of their basic needs to being by their side during the tough phases, we try our best to safeguard our family and keep them happy. However, what many of us do not even imagine is what happens to our loved ones in a time when we are not around anymore. And if you are the only bread-owner of the family, then you must plan everything accordingly. One of the best things that you can do for your family is buying a term insurance plan. In an uneventful situation, the sum assured that they can claim, will help them in solving several problems.
Choosing the best term insurance plan for their needs can be really confusing for many people. As a matter of fact, there are so many term insurance plans available in the market that we can find ourselves really clueless about going for the one that can be ideal for our needs. Well, in one such situation, you can consider 5 points to buy the best term insurance plan in the country.
Calculating The Term Insurance Coverage
The coverage of term insurance depends on the kind of money that the family of the insured would need on the untimely death of the individual. To understand this, you have to find out the monthly expenses of the dependent members of your family while keeping inflation in mind. Do not forget to consider your liabilities which include home loan and personal loan, if any, credit card bills, etc. It is alright if you do not count your liquid assets. While doing so, make sure you include the significant future goals of your children.
Tenure Of The Term Insurance Policy
Once you are clear about the coverage that your family would need in your absence, you need to find out the age you would require the life insurance coverage. You need to know that the tenure should not be very short or even very long. If you take the policy for a longer time, the premiums that you have to pay will be too higher. To find a solution to this, you need to figure out the year when the worth of your liquid asset will be more than the coverage of your term insurance policy. That is the perfect age till when the tenure of your term insurance policy should be.
Choosing The Add-Ons
While buying a term insurance policy, you will also get the option of choosing riders. A few of the major riders that are available are additional coverage for death because of an accident, waiver of premium on critical illness cover for critical illness, and waiver of premium on disability. Of all these riders, the waiver of premium riders can be bought at a low premium. The most expensive of them is the critical illness cover. It is completely up to your need that you can choose an add-on cover.
Claim Settlement Ratio
One of the most important points that none of us should miss out on is considering the claim settlement ratio. This indicates the efficiency of the insurance company on which the policies are settled. If you find the claim settlement ratio of an insurance company is 99%, it means that 99 claims of 100 have been settled by the particular insurance company. However, the claim settlement ratio of a company is a mere indication. It should more be considered like a filter, not a decision-making criterion.
Finding Information On The Future Of The Insurance Company
It is very crucial to know where your insurance company is standing today. It is also very important to find out the year since when the insurance company has been in the market. Find out about the exclusions in the policy, events that are not covered under the plan.
Keeping these 5 points into consideration is much needed. This will help you to understand and even make a decision whether you should opt for the insurance company or not. Once you are sure about the company, you can check out the term insurance plans. To know about various insurance companies and their insurance plans, you can visit the website of IIFL.
