Once you have a family, we work hard and do everything required so that our family can live peacefully and continues to prosper. However, have you ever thought what if you, unfortunately, meet with a fatal accident and cannot make it to stay with your family? What about the security of their life and how will they manage all the expenses? Well, these are the concerns that prompt you to consider the steps needed to safeguard your family’s future, and one of the safest ways is to buy a term insurance plan.
Some people have a notion that taking a term plan is a wastage of money as they are not going to receive any maturity benefit at the end of the term. Seldom do they realize that life does not come with guarantees.That is why, once we are gone, our family should have the means that can help them financially. Therefore, term insurance can at least payoff the loans that you have taken and let your family stay free from the cycle of debt. Now the confusion is choosing the best term insurance plan. There are so many term insurance policies and plans that it can get a bit perplexing to choose the one that can prove to be a good fit for us. Let us take a look at the significant features that we must pay attention to while choosing the term insurance policy.
- Life stage and the number of dependent family members:The first thing to determine is your age and then the number of family members who are dependent on you. This will help you to choose a coverage amount that can be of help when one such situation arises.
- The lifestyle of your family:If your family maintains a certain lifestyle, you would not want them to compromise when you are not around. This is why you must opt for a term plan that pays lump-sum money that can help your family to maintain the same lifestyle.
- Solvency ratio:The solvency ratio helps you understanding whether the chosen insurer will be capable of settling your claim in case of one such need. Insurance Regulatory and Development Authority of India (IRDAI) has made it mandatory that every insurer has to maintain a solvency ratio of a minimum 1.5.
- Critical illness cover:As we discuss the term insurance plan, we relate it to the accidental death of the policyholder. However, there are situations in life when we have to undergo treatment for critical illnesses such as cancer or brain surgery. That is also one of the times when we need a lot of money. Some term plans cover those expenses. Therefore, when you are looking for the best term plan, do not miss out on this point.
- Additional covers:Term plans come with a basic life cover. If you are taking to provide financial security to your family, then you must choose a plan that offers comprehensive cover and benefits. Some of the benefits that must pay heed to while choosing the best term insurance plan include Accidental Death, Waiver of Premium, and Income Benefit.
Considering these points will certainly help you in getting the best term insurance in 2021. However, do not forget to check the premium cost that you have to pay either monthly, quarterly or yearly, depending upon the kind of plan you are taking.
For a better understanding of term insurance plans, you can also visit the website of IIFL Insurance Knowledge Centre. You will come across various insurance companies here offering term insurance. You can compare the plans from the comfort of your home and make the final decision.