Buying a term insurance policy can be the best thing you can do for your family. We go shopping almost every month, eat out, watch movies in multiplexes, go on outings, just to have some awesome time with our family. While we do so many things to make them happy at present, we must put some effort to secure their future, isn’t it? And nothing can be more effective than getting term insurance. The term insurance benefits can be availed by your family in the event when you are no more there. The beneficiary of the term plan can claim the sum assured.
Nevertheless, there are so many term insurance plans available in the market that it can be confusing for anybody to choose one that fits their needs perfectly. Here are some factors that you can focus on to choose the right term insurance.
- The number of family members and their life stages: The foremost thing that you need to think about is the number of family members that are there in your family and their life stages. Also, with time, the financial responsibilities will increase; therefore, you must consider the time that is coming and the kind of money your family members would need for that.
- The lifestyle of your family: Your family must maintain a certain type of lifestyle. You must assess the funds that are required for keeping up that lifestyle always. Also, in the future, they may need more money to maintain the same lifestyle. Keeping the inflation factor in mind, you can choose the term insurance plan for your family.
- Liabilities that have to be covered: If you have a home loan for which you are paying EMI every month or a car for which also you are paying the monthly installments, you would need term insurance that can provide a cover for all these. You cannot let your family deal with such liabilities, especially when you are not there with them anymore.
- The cover amount should be equivalent to the family’s needs: The term insurance cover amount that your family will get should be equivalent to the needs of your family. Also, you need to consider that in the future the prices of every single thing will increase, and along with that, the requirement of money in the family will also increase. Therefore, you have to choose a term insurance plan that can meet the needs of your family even after 10 years from today.
- Claim settlement ratio: Claim settlement ratio indicates the number of term insurance claims that have been settled so far by a company. If the claim settlement ratio is 95%, it means that 95 out of 100 term insurance claims have been settled in all these years by the company. The higher the percentage of claim settlement ratio is, the more you can trust the company. Although, this is not the sole or most important factor based on which you should judge a company or a term insurance plan offered by it.
- Getting riders: We usually think that term insurance is all about getting the death benefits. Well, several term insurance plans offer additional riders. Taking the riders or add-ons helps in getting better benefits such as the return of premium after surviving the term. Even if you take a basic term plan, you can have better value if you take riders along with it.
Once all of these are done, you can then spend some time comparing the various term insurance plans offered by different life insurance companies. To compare maximum term insurance plans from several insurance companies, you can visit the website of IIFL Insurance.