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How to Research for the Best Term Insurance Plans?

How to Research for the Best Term Insurance Plans?

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Nowadays almost everything is available online, especially the information. All you need is an eye for reliable sources and awareness of what you are looking for. When it comes to finding the best term insurance plan, you can find all the information online and make a qualified decision.

What to Look For?

So, the first challenge is to figure out what matters and choosing the best possible option about it. Here is a list of factors that you will need to consider:

  • Online availability
  • Customer Support
  • Claim Pay-out Options
  • Claim Guarantee conditions
  • Maximum Age of Cover (for Term Insurance)
  • Limited Premium Payment Option
  • Claim Settlement Ratio

Now, listing the parameters is not enough, you also need to know exactly what to look for within each and why they affect your decision.

Online Availability

Online availability means the whole process of securing a term insurance cover for you should be online and paperless. So, you can complete your application from the comfort of your home or office and don’t have to visit any offices.

The online life insurance buying process can save a lot of time and effort for you. You will only need to visit a designated clinic for medical checkup, which is completely free of charge.

Customer Support

When you are purchasing services online, customer support becomes a very important measure of the reliability of the service provider. In the case of term insurance, you want the customer service to be both empathetic and aware.

In case of any bottlenecks you or your family may face in the future, the customer service should have the solutions. And before anything else, they should be reachable.

Claim Pay-out Options

Claim payout is an important factor to consider while researching the best term insurance plan. This feature is especially useful for your family members, as they will bear the consequences or benefits of the way claim is paid. You should have the option to choose any of the following three payout methods:

Claim payout options

While lump-sum payment is the base option with any term plan, regular income feature is the feature you are looking for. With monthly income payout, your dependents will not have to worry about investing a large sum of money to generate income.

Regular income from the term policy will help the family continue running the household without major investment decisions. You still need to have the lump-sum payout as well, so that the family can pay off any loans, and invest in long-term goals.

Since both lump-sum and monthly income payout are important, you can divide the total benefit amount between the two.

Claim Guarantee conditions

Claim guarantee allows your family to receive the claim settlement much faster. Usual conditions for this benefit may include:

  • The policy holding period before the claim
  • A clear cause of death
  • All claim documents have been submitted by the family

Only those policies which meet both and any other conditions laid out by the insurer, will become eligible for claim guarantee.

Claim guarantee also states a maximum claim settlement period for the insurer. So, you may also look for the minimum settlement period.

Maximum Age of Cover

Maximum age of cover may not seem very important right now. But considering the changing life expectancy and employment scenario, a long-term life cover is better.

You can even look for whole life term insurance, which will cover your life till the age of 99 years. So, in a way, this plan not only helps you protect your family, but also allows you to leave a tax-free estate into the hands of your children or grandchildren.

Option of Limited Premium Payment

When you are looking for a long-term life cover, limited premium payment tenure option becomes important for you. This option allows you to buy term insurance for the entire tenure but pay the entire premium within initial few years.

For the most part, you should aim to pay all the premiums for term insurance plan before retirement. This way the term premium burden doesn’t fall on your limited pension in the golden period.

Claim Settlement Ratio

Despite all the other useful features claim settlement ratio still plays an important role. It helps you to judge the insurer’s claim settlement process and how easily families can secure a settlement. Fast settlement and claim guarantee schemes definitely add to the improvement of claim settlement ratio.

Apart from these parameters, you may also look at the additional covers available with the term insurance plan. Benefits like accidental death and disability, critical illness insurance add to the protection value of the term plan. These benefits can help your family wade through the tough times like long-term disability and life-threatening diseases.

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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