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Buying an Affordable Term Insurance with Good Cover

Buying an Affordable Term Insurance with Good Cover

Term Insurance Cover

In today’s day and age, the uncertainties of life and the risk of an untimely death has become more relevant than ever. That being said, the situation becomes much worse for a family, which has to deal with the untimely demise of their breadwinner. The loss of the breadwinner would mean that the grieving family will not only have to deal with the emotional turmoil of losing their beloved, they would also be thrown into a significant financial crisis, with no viable source of income.

As the breadwinner for your family, you cannot depend upon your savings alone to take care of your loved ones in your absence. You must ensure that the family remains secure against life’s uncertainties with a robust financial safety net – in the form of term insurance cover. With an affordable term life insurance plan that promises a significant cover, your grieving family will not have to deal with any financial insecurity. Before we describe how you can purchase the best term insurance plan with excellent insurance coverage for your loved ones, let’s look at various aspects of a term plan.

How does Term Life Insurance work?

Once you decide the term insurance policy term and the coverage amount, you can check the premium payable for the desired coverage online. Here the premium payable is calculated based on various factors such as your age, health, lifestyle habits, coverage amount, and coverage tenure. While you can decide to pay the premium either at regular intervals or in one go, you have the flexibility to determine how your family would receive the coverage amount if something happens to you.

Given that term insurance plans (except for the return of premium term plans) essentially do not offer any insurance benefits to the policyholder upon maturity, the premium payable for therm insurance plans is usually lower than other life insurance plans. At the same time, the premium amount increases with age – the earlier you purchase the term insurance cover, the lower premium you will have to pay.

Tips to Get the Best Term Insurance Plan Cover for Your Family?

Nowadays, the sheer number of term plans and their variants is enough to confuse an average insurance buyer. Navigating this maze of term insurance policy options, with their varying policy terms, features, benefits, and sum assured amounts can become much easier if you keep the following tips in mind –

1. Review the Claim Settlement Ratio of the Insurance company

When picking a term insurance policy, it is advisable that you take a good look at the insurance company’s reputation and claim settlement record over the years. Since a term insurance policy coverage requires a long term commitment on your part as the policyholder, you need to be sure of the insurance company’s ability to support your family in your absence. For this, you can use their claim settlement ratio CSR as a metric to gauge their stability and reliability.

The claim settlement ratio of an insurance company indicates the number of insurance claims paid out by the company for every 100 claims received. The higher the CSR is, the more favorable is the insurance company’s chances of settling your insurance claim.

2. Buy Term Insurance Protection at an Early Age

The amount of premioum payable and the available options for coverage amount under a term life insurance plan predominantly depend on the age at which you purchase the plan. Buying a term insurance plan when you are young can help you save much on the premium amount payable while optoing for extensive policy coverage. As the age progresses, the available coverage options get lesser while the premium payable against them increases.

3. Determine your Life Cover Accurately

The desired coverage amount under the term isnruance plan can only be sufficient if it matches the present and future needs of your family and yourself. When buying a term plan, it is imperative that you assess the life cover amount based on your existing financial liabilities, the number of dependents you have, your financial goals, and how much money you need to achieve them. Once you have an amount in mind, make sure that you choose a more extensive coverage.

4. Compare and Buy Term Insurance Online

With the Internet penetrating to every nook and corner of our country, it has become much easier to compare term insurance plans online, based on their features, benefits, and premium payable before choosing one that aligns with your needs. Buying term insurance plans online is not only much cheaper due to lack of intermediary costs such as the agent’s commission, but you can quickly complete the insurance application and avail of quick policy issuance without any hassles.

Speak to an insurance specialist now!

Frequently Asked Questions (FAQs) for Term Insurance Plans

A person can only purchase a term insurance plan till the age of 65 years, and they can choose the risk coverage for up to 99 years of age. One can easily buy the best online term plan between the age of 18 to 65 years.

This being a term insurance plan doesn't offer any payout after maturity or expiration date

Each insurance company has its own term insurance premium calculator. If you want to check out the premium quote, go for the iSelect Star term plan calculator. It gives a premium amount based on your age, gender, habits, education, and annual income.

You can purchase an iSelect Star term plan anytime between 18 to 65 years of age. This is a term plan with return of premium option – that means all the premiums paid throughout the tenure will be paid back to you if you outlive the policy.

It depends on your needs. For example, if you want to cover a child's education or wedding expenses, you have to include them in your coverage. Your premium will be calculated accordingly when you buy the best term plan in India.

If your key purpose is to give your Family financial protection, go for the best term insurance plan. And if you want some savings, in the end, go for a traditional life insurance plan. iSelect Star is a term plan with return of premium option. All the term insurance premium will be paid back to you, if you outlive the policy term.

Go for at least 12 times cover than your annual income. Or you can go as far as 20 times coverage as per your needs.

The right time is when you don't have anything to keep your Family safe from financial storms, and they rely on you for financial needs.

If you are unable to make the payment or suffering from a terminal illness, the best term insurance plan pays a part of the sum insured to treat your disease.

Term life insurance plan riders are attachment or endorsements made, while taking the term insurance policy, as a supplementary coverage to policyholders. Apart from the core death benefit, term insurance plan riders offer below-given additional benefits:

  • Accidental Death Rider When a person suffers from a terminal illness, his/her family ends up spending a significant amount in treatment and medical expenses. Accelerated death rider pays a part of the sum insured in advance to cover such costs and save the family from running out of cash.
  • Accidental Disability Rider If the policyholder can't pay the premium because of an accident or permanent disability, a sudden disability this pays the premium on behalf of the policyholder till completion of policy term or for a defined duration.
  • Critical Illness Rider If the insured person gets a heart attack, cancer, or any other critical illness, this rider pays a lump sum on valid diagnosis.
  • Premium Waiver Rider If the policyholder is unable to make payments due to income loss or disability, a premium waiver rider waives off all future premium payments. And the term insurance policy remains active until the expiration date.
  • Income Rider: This rider in a term insurance plan ensures that your family receives regular income + sum insured in case of unfortunate demise of life insured.

Anyone can go for life insurance as it offers some savings after the maturity date, but it doesn't cover the protection of your family . The best term insurance plan is solely designed for taking care of loved ones if something happens to you. Term insurance plans act as a shield between your family and sudden financial fall. They make sure that your family lives a healthy life even after you. With a little amount paid per year, you can be worry-free from the family's financial conditions.

Questions that you need to ask while Buying the Best Term Insurance Plan?

  1. 1. Are you buying a term plan with return of premium?
  2. 2. Amount of premium you have to pay based on your age, habits, education, and monthly income
  3. 3. The total number of benefits covered in the term insurance plan. Do they include benefits that you care about the most?
  4. 4. How to save money on tax if you pay for the term life insurance plan?
  5. 5. Do they offer regular income options?
  6. 6. Can you change the coverage and premium in the future?
  7. 7. Does the claim consider valid if death occurs outside India?
  8. 8. Which kind of death is not covered by a term insurance plan?
  9. 9. Can NRIs take a term insurance plan? If yes, what are the conditions?
  10. 10. Does the term insurance plan have a cash value if you decide to cancel the term insurance policy?
  11. 11. Under what circumstances can a term insurance plan be cancelled?
  12. 12. Can I pay the premiums online or make electronic payments?
  13. 13. What will happen to the term life insurance plan if the life assured starts smoking after purchasing the policy?
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