Term Insurance Plans In India: A Complete Guide To Choose Right Term Insurance Plan For You

Our country has 24 life insurance companies (Life Insurance companies in India). Therefore, deciding which of these 24 companies will be the best term insurance plan for you is challenging. To ease your problem, we have prepared a list of the Top 5 Term Insurance Plans in India.

When it comes to buying a term insurance plan, the first thing people look at is the company’s claim settlement ratio. Good thing, I should also check. But, apart from this, there are many other things that we should look at while taking a term insurance plan. So, let us discuss the things to consider while taking a term insurance plan.

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What is Term Life Insurance?

First of all, let us know what Term Life Insurance is. Term insurance is a type of life insurance. If the policyholder dies during the policy term, his nominee gets the fixed amount of the policy. If this does not happen and the policyholder survives until the policy’s maturity, he does not get any maturity amount.

For this reason, the cost of such a policy is meager, and it covers the risk of your life very well. Term insurance is purely life insurance. Therefore, if you have responsibilities for many people, then you should take this policy immediately.

However, nowadays, there are many variants in terms of life insurance, such as the return of premium, term life insurance up to the age of 100 years, various riders, and various claim payment options. But you don’t need to get involved in all this. You buy a simple term life insurance plan. This is where the best happens.

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Top 5 Term Insurance Plans In India

There are some parameters to know based on which we can choose the best term insurance plan for us in India. With their help, you can choose a good term life insurance for yourself. Before discussing this parameter, let us see the Top 5 Term Insurance Plans in India:

1. LICs Tech Term
2. HDFC Click2Protect Life
3. ICICI Pru iProtect Smart
4. Max Life Online Term Plan Plus
5. Aegon Life iTerm

Top 5 Term Insurance Plans In India : Claim Settlement Ratio

It is said that the better the claim settlement ratio of a company, the better it is to buy its policy. But do not trust this data unquestioningly. Because this data is all the life insurance data being sold by the company. There is no separate data on term life insurance’s death claim settlement ratio.

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Term Life Insurance Plan Premium

While buying Term Insurance Plans In India, we must remember every feature and premium. However, we should not choose any term life insurance plan because its premium is low. It would be best if you bought a policy that has a balance between features and price. Therefore, while giving life insurance, never consider how much return you will get on PREMIUM and avoid such policies. Such policies often need to be corrected.

Features of Term Life Insurance

Choose a term life insurance plan whose coverage is around 15-20 times your annual income. The life insurance term should equal the age you will or plan to work. Only take life insurance after retirement because it is of no use. Therefore, do not buy life insurance for 80 years or 100 years.

Never take riders like Accidental or Critical Illness with life insurance. Life insurance is necessary for a limited period only. However, your Accidental or Critical Illness insurance is required for your entire life. Additionally, if you purchase these riders as standalone products, they may provide better features than these riders.

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Always choose the annual payment option for life insurance. Because the amount insured in these term life insurance products is very high, you may need to pay even one premium on time to avoid problems. Therefore, to prevent such issues, opt for an annual premium.

What Is The Future of The Company?

Since life insurance is a long-term contract between you and the company, choose a stable company. Do not take a policy from any new company which is in danger of closure. Take a policy from an old company.