Life is short and unpredictable. Therefore, you must invest in the best term insurance plan in India to ensure that your family remains financially secure even after your untimely demise. If you are wondering what it means, keep scrolling through it to learn more about it.

What is Term Insurance?

Term insurance refers to a life insurance policy that offers complete coverage to the policyholder for a fixed number of years. If the policyholder dies during the policy period, a death insurance policy is offered to the nominee as a financial cushion. The best term insurance plan in India offers security and value for money. Therefore, choosing and investing in the best term insurance plan in India is crucial. The premium paid for the term insurance plan depends upon various factors:

  • Age
  • Gender
  • Premium payment term
  • Policy term
  • Sum assured and much more.

You can calculate it via a term insurance calculator as well. However, before selecting the best term insurance plan in India, here are the following things that you must keep in mind.

  • In case of untimely demise, the term insurance should be able to provide a family with adequate income.
  • The tenure of term policy should cover the intent an individual is willing to work.

If you are considering why choosing the best term insurance plan in India is worth the investment, here is a detailed guide.

Benefits of the Best Term Insurance Plan in India

Here is the list of reasons for you to invest in the best term insurance plan in India:

  • Low Premium

The premium for a term insurance policy is much lower in comparison to other insurance plans, as no investment element is included in the insured amount. In addition, to get life cover, the individual must pay only one per cent of their total income. Thus the premiums are much lower, and you can use the term insurance calculator available online to find the payable amount.

  • Provides Financial Security

The untimely death of any earner in the family is quite uncertain, which can lead to financial issues. To prevent such a situation, it is always the best option to invest in a term policy that can take care of your family's financial needs.

  • Highly Flexible

Flexibility is what term life insurance is known for. You can select any online or offline term policy and customize it according to your needs. For example, according to your needs and budgets, you can choose the premium payment term, like monthly, quarterly or yearly.

  • Low Claim Rejection

While purchasing the best term insurance plan in India, you must disclose all the facts regarding your health condition, finances and much more. According to the Insurance Regulatory and Development Authority (IRDA), no insurance company can claim that there has been non-disclosure of facts when the policy becomes effective after two years.

  • No Brokerage

The brokerage fee is a recurring expense, often mentioned under premium allocation charges. A certain amount is allocated under the brokerage when you pay the premium. With time, this percentage keeps decreasing. Therefore, buying the best term insurance plan in India online can save 5-6% on brokerage charges.

  • Riders

Riders refer to the additional benefit associated with a term insurance plan. These come with certain additional fees and should be taken if necessarily required. Some of the rider plans can be taken along with the issues like critical illness, death due to accident, partial or permanent disability, and much more. You should buy a rider for a term insurance policy if you find it needs to be genuine. Before buying a rider, make sure you carefully go through the documents for exclusions.

A term insurance policy is associated with numerous advantages. This plan covers burial, funeral, education, and marriage expenses during the uncertain financial crunch. Ideally, you must invest in the best term insurance plan in India as soon as you start earning. The earlier you invest in it, the lower your premium amounts will be. As you age, the chances of disease increase, along with an increase in the premium amount to be paid. To find the premium amount, you can use a term insurance calculator.

If you are planning to buy a term insurance policy, you need to keep the following documents handy:

  • Income proof sources like Salary slips, Income tax returns, Bank statements, and other forms of evidence of income
  • Address proof cards like a driving license, Aadhaar card, voter's id, passport, and other forms of identification
  • For identification proof, a PAN card, an Aadhaar card, and a Voter ID card will be required
  • For your age proof, an Aadhaar card, Voter ID card, passport, driving license, and other forms of identification are used.

So, what are you all waiting for? Now that you know the importance of a term insurance policy compare different available options and get the best term insurance plan in India for your family.