what are key point need to know before buy term in in india also recommend best plan in shortway Before buying a term insurance plan in India, here are some key points to consider:
Key Points to Know:
- Coverage Amount: Ensure the sum assured meets your family’s financial needs in case of your untimely demise.
- Policy Term: Choose a policy term that aligns with your financial goals and the age of your dependents.
- Premiums: Compare premiums across different plans. A lower premium may come with lesser coverage or benefits.
- Claim Settlement Ratio: Look for insurers with a high claim settlement ratio, indicating their reliability in settling claims.
- Riders and Add-Ons: Consider optional riders like accidental death benefit, critical illness cover, or waiver of premium to enhance coverage.
- Renewal Terms: Understand the renewal process and conditions for the term policy.
- Exclusions: Be aware of what is not covered under the policy, such as certain illnesses or acts of suicide within the initial policy period.
- Tax Benefits: Premiums paid towards term insurance qualify for tax deductions under Section 80C of the Income Tax Act.
Recommended Plans:
- HDFC Life Click 2 Protect 3D Plus: Offers comprehensive coverage with multiple options for customization and riders.
- Max Life Term Insurance Plan: Known for its high claim settlement ratio and flexible options.
- ICICI Prudential iProtect Smart: Offers customizable coverage with a variety of riders and critical illness benefits.
- SBI Life eShield: A simple online term plan with various coverage options and good claim settlement ratio.
- Tata AIA Life Insurance Tata AIA Life iRaksha TROP: Provides coverage along with a return on premiums at the end of the policy term.
Conclusion:
It’s essential to compare various plans and read the terms carefully before making a decision. Consulting with a financial advisor can also help tailor the right plan for your needs.
