Are you searching for the best term plan?
Mr Ranjan, 45, worked for an IT MNC and resided in Bangalore with his wife, two children, and parents. He had purchased a one-crore term insurance policy in the hopes of covering his family’s financial obligations in his absence. Because of the frequent travel required for his job, he caught COVID-19, which spread to all of his family members.
Despite all attempts by medics to maintain Mr Ranjan’s vitals steady, he died as a result of numerous organ failures and oxygen deficiency. His family members healed from COVID-19, but they were heartbroken at his death.
With the family’s only earner no longer there, the future may have seemed bleak, but happily, Mr Ranjan had told his wife about his term plan, and she subsequently made a claim request to the insurance company, receiving a death benefit of Rs 1 crore.
Mr Ranjan’s family would have had no other source of money to operate their daily life or pay for their children’s schooling if he had not purchased term insurance. Thus, the term insurance meaning is that it is a useful instrument for anybody who wishes to safeguard the financial obligations of their loved ones even after their death.
Nobody can anticipate the future, like in the preceding example, but we may prepare for it by recognising the risk factors. The COVID-19 epidemic, which is sweeping the globe and claiming lives, is a perfect illustration of how things may quickly turn unclear.
Only in such cases should you consider products such as term life insurance to secure your financial status for a brighter future. Let’s learn more about this useful financial instrument known as term insurance.
What is Term Insurance Meaning?
The term insurance meaning is that it is a pure protection plan designed to preserve the family’s financial future in the event of unforeseen occurrences such as death, terminal illness, disability, and so on. Nonetheless, unlike other investment products, these plans do not provide any returns on premiums paid at the conclusion of the policy term.
So, if you want to acquire the best term plan, you need first to understand the risks in your life, the number of dependents, and how much money they will need to maintain the same standard of living they have today after you die.
There are several insurance firms on the market, each providing a diverse selection of coverage. It is undeniably difficult to choose the best term plan from such a long selection, but you must devote time and effort in the search since it ensures peace of mind for you and a stress-free future for your family.
Benefits of term insurance
1. Affordable premiums
The cost of term insurance is another distinguishing factor. One of the most significant advantages of the best term plan is that it provides a much bigger amount guaranteed for a smaller premium. This guarantees that policyholders do not have to pay a lot of money on something as simple as life insurance.
2. A sum assured that factors inflation
The big amount guaranteed is the single most appealing characteristic of the best term plan. Term insurance takes growing inflation into consideration when determining the amount guaranteed, but other forms of life insurance may give a sum assured that may support one’s present lifestyle.
Policyholders must pay a greater premium for a larger sum insured under any other form of plan. However, with a term plan, policyholders may afford a big amount insured at a low cost that would sufficiently care for their family despite escalating expenditures. You may also choose a monthly payment for the family rather than a single sum payment.
3. Ideal for youngsters
Term insurance is an excellent choice for young people who have just begun working and do not want to put off important investments such as life insurance due to perks such as reduced premiums, flexible payment choices, and a big amount insured. This is especially important if you have a family that relies on you.
The advantage of the best term plan is that it does not have to cease when the term expires. Depending on the policy conditions, there is always the possibility of renewing the coverage for a few more years. When you renew a policy, you will continue to get all of the policy’s benefits until the conclusion of the extended term.
2022 Best Term Plans in India
1. Canara HSBC Life Insurance – iSelect Smart360 Term Plan
This term plan includes a full life cover option and allows you to customise your life insurance coverage depending on your changing lifestyle. It also has a premium return option, spouse coverage, and built-in protection. Furthermore, it provides a variety of death benefit payment options, including lump amount, monthly income, and lump sum + monthly income.
2. SBI Life-eShield
The insurance provides four plan alternatives, from which you may choose the best one based on your needs. It is the best term plan insurance coverage for your family, and you can apply for it online without any hassle. This insurance provides features like renewability, a minimum amount promised of 20 lakhs, surrendering capability, a free-look time, and so on.
3. ICICI Prudential iProtect Smart Term Plan
This strategy is offered in three variations, and you may choose the best one after doing an extensive study. The insurance provides advantages such as death coverage, terminal illness coverage, premium waiver benefit, accidental death benefit, tax benefits, surrender benefits, and so on.
4. Aditya Birla Sun Life Insurance Life Shield Plan
Aditya Birla’s long-term strategy Sun Life Insurance provides eight distinct coverage choices from which customers may choose to fulfil the unique needs of their family members.
It assures that the insured’s family members are financially secure in the event of the life assured’s untimely death within the policy’s term. This plan also includes terminal disease benefits and the ability to expand life coverage by adding riders.
5. PNB MetLife Mera Term Plan Plus
This term plan provides comprehensive coverage at a reasonable price. Furthermore, it allows you to choose between protection against terminal sickness, critical illness, disability, and death, as well as numerous life insurance alternatives such as spouse coverage and entire life cover.
Before you begin your search for the best term plan in India, we suggest that you thoroughly review all of the insurance plans and their features in the brochures accessible on their website. If necessary, you may seek the counsel of insurance specialists or visit iiflinsurance.com to clarify your uncertainties before investing since this one choice has the potential to change your family’s destiny in your absence.