Your family is your most prized asset and you leave no stone unturned to take care of their well-being. As a family person, you do not want your loved ones to suffer from any problems in life. However, there is one thought that disturbs us all - what will happen to our family if we were to suddenly disappear? Who will ensure the well-being of our family members in our absence?
The problems escalate if you are the sole earner in your family; thus, you have a greater responsibility of making sure that your loved ones remain financially secure and protected throughout their lives. Term insurance is one instrument that can work as a financial backup for your loved ones, if anything were to happen to you. Thus, in case of your untimely demise within the policy tenure, your family will receive a significant amount of money to help them manage their lifestyle expenses and support their goals in life.
When it comes to choosing the best term plan online or offline, you may feel some confusion about making the right choice. To help you find the best term plan for yourself, here are a few things to consider:
1. Choose the Right Tenure
It is vital to choose the tenure of your term insurance plan wisely. It is as important as the coverage amount of the term insurance plan you choose. Ideally, your term insurance policy must cover you till the last of your work life, which is not same for all. It is up to you to decide till what age you would like to continue to work in life. It also depends on the age at which you get married as this event comes with greater personal responsibilities.
So, it is good to choose one of the best term plans online or through an agent for a tenure that lasts until your preferred retirement age. Let’s assume you are 32 in the present and wish to continue working till the age of 55. It means you can choose the tenure of twenty-three years for the term plan you are willing to buy.
2. Consider Your Needs While Choosing the Cover
Needs and liabilities in life differ from person to person. It means you need to select the right cover based on your needs and not that of your friends or acquaintances. You might have asked your peers about their recommendations about term plan cover. Still, their advice may not match your needs.
One simple way you can follow is to select the term cover that is eight to ten times your annual earnings. These days, a one-crore term insurance plan is quite popular amongst the masses in India, and it is ideal for those who earn around ten lakhs rupees per annum. This ten-times formula already includes the future inflation side into it, making sure that your family gets adequate returns in your absence.
Additionally, consider your age at marriage, your children, and similar other factors while choosing the right term cover.
3. Prefer Buying Term Insurance Online
These days, you can easily buy stuff online easier than going to a local store. The same is true when buying term insurance as well. You might have heard or experienced people complaining about buying term insurance through local agents, which can be cumbersome sometimes. However, buying one of the best term plans online is more advantageous than doing the same offline.
Take the case of Max Life Insurance online term plan these plans are easily available online and offer lower premium rates than many other plans available offline. Also, you can easily read about and compare features of different online plans, without the need to go anywhere or wait for an agent to explain things to you.
4. Be Wise When Selecting an Insurance Company
Having several insurance companies in the market is one of the reasons why you may be feeling challenging to choose a term plan. The more the choice, the more are the doubts. Choosing the right insurer matters a lot as it determines the ease with which your family can get the benefits in the future.
One way to ensure you are choosing the right insurance company is to check its claim settlement ratio. An insurer that settles more than ninety-five percent of claims each year is true, a good one.
A term insurance plan backs your family even in your absence. It is crucial for you to decide which term plan to choose based on the factors mentioned above before making any final decision.
Please note: This article is contributed by Aarush Joshi.