Opting for 2021's Best Term Plan of Life Insurance?

Posted by amrina alshaikh on November 20th, 2021

At the time of deciding the best term plan, the first thing that comes to mind is comparing prices. Of course, price is very important, but if you give more importance to the price, you may have to compromise with your family\'s financial security. Therefore ensuring that your family gets the maximum financial security possible, we have prepared a list of those five important features that should assist you in choosing the term insurance plan online.

1. Claim Settlement Ratio:

This ratio is derived by taking into account the percentage of claims paid out of the total claims that were filed in the current year. The higher the ratio, the clearer is the indication that your dependents can claim the insurance in your absence without many hassles and thus continue living their lives comfortably.

The sole purpose of the bestterm plan is, as we all know, to secure the future of your dependent. If the Claim Settlement Ratio (CSR) is higher, the chances of ensuring the security of your family\'s future keeps increasing.

No doubt claims settlement ratio is very important, yet what is equally important is to have a look at the total number of claims that the insurer has settled in that particular financial yearn when a certain number of claims are settled. The Claim Settlement Ratio gets significance only in case of a substantial number of claims getting settled.

2. Solvency Ratio:

The solvency ratio is a reflection of whether your chosen insurer will be financially capable of settling all your claims if the need arises. The Insurance Regulatory and Development Authority of India (IRDAI) has made it mandatory for every life insurer to maintain a solvency ratio of minimum 1.5.

If unfortunately, a natural disaster occurs, the life insurer receives a large number of claims in a very short period. Since a large number of claims need to be settled within a short span of time, it is in such circumstances that the ratio of solvency becomes vital. In other words, your family\'s financial security entirely depends on the financial stability of your chosen life insurer. Even though chances of natural disasters might seem unlikely, ignoring this vital aspect could mean compromising your family\'s financial security. So this plays an essential role in selecting your best term plan.

3. Critical Illness Cover:

In case of any unforeseen calamity or event, your family\'s financial security is at stake. Under such circumstances, the best term plan takes care of securing your family\'s financial future. But sometimes, the death of the earning member is not the only time when a family\'s financial security is at stake. Sometimes critical illnesses like cancer or brain surgery can also cost a lot of money and thereby cripple the family\'s finances. Here critical illness plans come to the rescue as it pays the cover amount immediately as soon as the diagnosis reports are submitted. The critical illness cover amount assists in meeting treatment expenses and ensuring that your family has sufficient money to sustain their regular day-to-day life. Premiums that pay towards the critical illness cover are eligible for deduction under section 80D.

4. Additional Covers available:

Though all term insurance plans provide a basic life cover, if your family\'s financial security is your primary goal, you must ensure that you opt for the best term plan with comprehensive cover and benefits. Below are listed some benefits that you must take care of while getting your best term plan:

• Premium Waiver: In the case of permanent disability of the earning member, life insurance cover must continue without further paying the premium.
• Accidental Death: If the primary earning member dies unfortunately due to an accident, this benefit means an increase in the sum assured to be paid to your family members. Almost all good term insurance plans offer you an accidental death cover that is equal to the base sum assured.
• Income Benefit: Some of the term insurance plans give your family members the benefit of receiving regular income from the plan rather than a lump sum amount. If you want your family to receive uninterrupted monthly family income even after your demise, then this benefit comes in handy.

So, one can get the best term plan by taking care of the above-mentioned factors.