All of us have aspirations and long-term financial goals, and to achieve these we make a regular monetary contribution to build a corpus. This enables you to save a certain amount that would help you stay financially secured in the future, which is uncertain. You may have to make a downpayment for your dream house, pay for a child's higher education or a wedding ceremony in your lifetime. But have you ever wondered what happens to your family when you're gone? As life is uncertain and death is a harsh reality which you cannot evade, it's better to prepare for it in advance.
A term insurance plan acts as a cushion for your family's financial requirements when such a tragedy strikes. It's a unique financial solution enabling a family to continue with their lives in your absence. A term plan offers benefits like large cover at affordable premiums, additional riders, and many others. However, choosing the right term plan involves focusing on several features that would help you and your dependents more than other policies.
Assess Your Needs: Before you start searching for the best term plans available, it is important to analyse and evaluate the coverage you need. The first step involves calculating the amount of coverage, which depends upon the number of dependents, their lifestyle and future aspirations. You may also add inflation as another factor in this list.
Premium Cost: Term insurance plans are the cheapest form of life insurance and they offer pure life cover. So, you should opt for term plans with the lowest expenses as this would translate into lower premiums for the same cover. For example, if you go for Canara HSBC Oriental Bank of Commerce's iSelect Online Term Plan with a sum assured of Rs.1.5 crore for a term of 26 years, you will just have to pay Rs. 974 per month or Rs. 10,818 per annum. Also, determine whether you are purchasing an offline or online term plan. Buying a term plan through online channels is beneficial and more economical as you get to compare different policies on key parameters.
Critical Illness Riders: Besides death, there are other unfortunate events, like accidents, disability, paralysis and critical illnesses, that can threaten the financial stability of your dependents, So, it is prudent to opt for term insurance with critical illness rider as a value-added cover. With this, you will get a lump sum amount in case you are diagnosed with any life-threatening disease. That said, you can consider Canara HSBC Oriental Bank of Commerce's iSelect term plan that offers a terminal illness cover along with cover against disability.
Claim Settlement Ratio: The CSR is the ratio of settled claims against the total claims filed during a particular period: the higher the ratio, the better the insurer. Generally, the CSR of higher than 85 percent is considered good. It indicates that the company is doing well financially and settling the majority of the claims. With the CSR of 97.22 per cent in FY 2018-19, the Canara HSBC Oriental Bank of Commerce offers exclusive benefits like swift claim settlement to take care of your loved ones when you're not around.
Additional Covers: Most good term insurance plans, like Canara HSBC Oriental Bank of Commerce's iSelect online term plan, offer you an accidental death cover along with other benefits. You may also check for income benefits wherein your family members receive a regular income from the plan rather than a lump sum amount to fulfil their financial obligations.
Solvency Ratio: It is one of the major factors that enable you to find out the capacity of a life insurance company to survive for the long term. Again, the higher solvency ratio indicates that a firm can pay off its claims on time and survive in the long run. Make sure your insurer must always have a higher value of assets than liabilities like Canara HSBC Oriental Bank of Commerce has.
When considering a term plan, do keep in mind is that not all insurance policies are the same. Some provide standard features, while credible insurers like Canara HSBC Oriental Bank of Commerce offer a host of invaluable features that would help you and your family in the long run. So, choose Canara HSBC Oriental Bank of Commerce to take care of your loved ones in your absence.
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