If you are looking for a simple protection plan for your loved ones, then a term insurance plan is the optimal option. This plan will offer financial protection to your loved ones in the unlikely event of your sudden death.

Here’s how you can choose a term plan that best suits your needs.

Evaluate Your Needs:

The very first step towards purchasing an insurance policy is to calculate your coverage needs. Assess the amount of coverage your dependants will need and then look for plans accordingly.

Which Term Plan to Choose:

As you progress in life, your financial situation could fluctuate. Pick a term plan that can help you sail through these situations.

Insurance Premiums:

Premium is a factor that majorly influences your decision of purchasing a planPremiums charged for plans by various insurance companies are quite varied. Nevertheless, pricing does not define the efficacy of a plan or the reliability of the insurance provider. An expensive plan will not really mean the plan will offer the best benefits. Likewise, a relatively cheap plan won’t be less useful either. However, when buying a plan, do not let pricing be the deciding factor. Compare and choose the plan which offers the best coverage and benefits.

Term Riders:

Besides death, there are numerous other factors like accidents, accidental disability and critical illness diagnosis, which can threaten the financial stability of your loved ones. A rider is an add-on benefit that helps protect you from such risks and can be combined with the base policy by paying an additional premium.

While choosing an insurance company, consider the one which provides you with multiple rider choices. Some of the common types of riders available are accidental death, premium waiver, accidental disability, critical illness, accelerated sum assured, and hospitalisation benefit.

Customer Service:

When buying insurance, make sure that the customer care is at your disposal 24*7. Because, when you have an issue with your term policy, the efficiency of customer care will decide how fast or slow your issue is resolved.

Ease of buying:

Convenience is something that everyone desires. When it comes to buying insurance, customers now search for plans which can not only be bought online but can also be accessed online. Now is the time of e-policies where the policy documents are issued online and sent to your email id, from where they can be accessed whenever you want. You should always look for convenience when it comes to choosing a policy.

Insurance Company’s Reputation:

Besides the above-mentioned factors, there are some others which one can consider assessing the insurer’s reputation. These include the insurer’s corporate governance record, its Assets Under Management (AUM) and the number of instances that the insurance company has violated IRDAI rules.

For your convenience, there are even term insurance calculators available on the insurer’s website.

Now that you know how to choose the best term insurance plan, it’s time to go online, evaluate and compare plans before buying one.

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