Best Term Insurance Plan for November 2022 – Forbes Advisor INDIA
User-friendly term plan: A low-cost term plan is based on the policyholder’s age and health. The premium charged would automatically be low for non-smokers or consumers leading a healthy lifestyle. Thus, it is advisable to purchase a term plan at an early stage in life as one can avail higher coverage at a very low premium cost.
Buy a package online: It is also advisable to always purchase the term plan through online channels rather than through an agent. Online plans have better deals and discounts and are available at lower premium rates than offline plans.
Benefits of the integrated policy: Before purchasing a term insurance policy, please review all of the benefits and living benefits that are built into this plan. For example, most plans sometimes include a terminal illness or accidental death rider at no or no cost. So, it is always beneficial to check these details about these benefits and how they will be payable to the applicant or the policyholder at the time of need.
Choose your policy term wisely: When purchasing a term plan, always make sure to enter the term of the policy and the coverage provided as per your future needs and requirements. If your policy term ends at 10, 20 or 30 years and then if you renew the plan until a certain age, it could cost you dearly because you will be renewing your policy at a later age. It is advisable to have the policy for as long as you retire to get rid of high renewal costs.
Claims settlement ratio (CSR): When choosing the best temporary plan, it is important to take into account the insurer’s CSR which represents the number of claims settled by the insurer compared to the number of actual claims filed by the insured or its agents. A CSR above 80% is generally considered the right claims settlement rate.
To find out what the difference is between term insurance and life insurance policies, read our Term Plan vs Life Insurance article for more details.