With each passing day, people are acknowledging the importance of financial security more and more. In fact, since the pandemic era, life insurance has become quite a popular way to ensure that. A report suggests that India's insurance market will be valued at around INR US$105.70bn in 2024.
This report highlights that more people are inclined towards the idea of exploring insurance plans, but most would opt for a simple and budget-friendly option, right? Well, term life insurance is one of the plans that you can vouch for. Let's find out why.
Why is Term Life Insurance Popular?
Term insurances are considered to be one of the best because their functioning is as easy as it can get. You simply get to pay premiums in return for your insurance plan and be assured about your family's financial security. In addition, you can enjoy tax benefits according to the Income Tax Act 1961. The Act's section 80C allows deduction of upto ₹1.5lakhs.
Do you Know the Benefits of a Term Life Insurance Plan?
Everyone knows that term insurance protects your loved one's future. Unlike traditional life insurance, term life insurance provides financial security for a finite period. Yet, their flexibility translates into a series of benefits, which are as follows:
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Affordable Premiums: Term plans are often recognized for their affordability. Since the requirements are only for a defined term, the premiums will be much lower than for other insurance plans. This makes it easy to secure a substantial pool of funds without putting a considerable strain on one's monthly budget.
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High Coverage: Term life insurance is a relatively better option if you're looking to get a higher sum assured at an affordable premium.
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Flexible Payouts: A term plan's death benefit can be offered in a variety of options for the beneficiaries. Your spouse can either receive a one-off benefit or staggered monthly payments to ensure financial management as needed.
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Riders For Added Protection: Alternative benefits in the form of riders will improve term life insurance plans and extend coverage. Additional benefits are offered in some plans for critical illnesses, untimely deaths, and disability, as well as waiver allowance.
How to Choose the Best Term Plan?
Selecting a term insurance is one of the tricky parts, where you may find a plethora of things influencing your choice. Therefore, here are some of the factors knowing which you can buy the best term insurance plan:
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Coverage Amount: This is basically the financial cushion that your loved ones would receive in case of an unfortunate event. The rule of thumb for such plans, you pay around 10-15 times annually, but when you have dependents or any debts, a secure financial future becomes a must.
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Coverage Period: This is how long your term life insurance would be for. Pick a term that matches your financial commitments. For example, if you expect your last child to graduate in 15 years, maybe a term plan of 20 years could serve the purpose.
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Claim Settlement Ratio (CSR): The higher the CSR, the better will be the insight into how efficient the insurer is in settling claims. Companies with lower CSR might take a great length of time to release the payout. This also means you might not be able to receive it on time. So choose preferably companies who have a higher percentage, like more than 95%.
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Policy Riders: Additional coverage that you can purchase to add to your basic policy and convert it to the best term plan is called policy riders. The benefits include critical illness cover, accidental death benefit or waiver of premium rider to make your plan even more comprehensive.
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Reputation: Look at the insurer's financial strength, customer service record, and product lineup. The best bet is to go for companies that are established and have proven records.
Secure the Best Term Life Insurance Today!
Term plans can be comprehensive when they have added benefits, and it becomes tricky to pick a suitable one. However, selecting a term life insurance can become hassle-free if you are in touch with a trusted insurance-providing company like Canara HSBC Life Insurance.
They provide the information online, which brings the comfort of investing in term life insurance to your couch. One of the best online term plans they offer is the iSelect Smart360 Term Plan, wherein you can benefit from a steady income, premium blocking, tax benefits, special exit value, etc.
To learn more and secure your and your family's future, visit Canara HSBC Life Insurance's user-friendly official website today!
