Life is very unpredictable, and so is a financial crisis. In the event of your sudden demise, you would not want your family to be stranded in the middle of nowhere. So, here the need for a term insurance plan arises. It is one of the most cost-effective ways to curb any financial crisis because of its low premium rates and its coverage.
What is a Term Insurance Plan?
An insurance policy for a set number of years is known as a term policy. A death benefit will be paid if the policyholder dies during the period stipulated in the plan and the policy is active or in force.
Compared to permanent life insurance, term insurance is at first much less expensive. The cash value of term insurance policies is much lower than that of most permanent policies. Basically, a policy’s only value is its death benefit guarantee.
Why is it Important to Have a Term Insurance Plan?
Having term insurance is very important, as it gives comprehensive coverage to the individual and protects their future financial well-being. Below are some of the listed reasons why a term insurance plan is a must-buy:
- You can get a high coverage by only paying a minimal price
- Term insurance plans provide coverage of up to 99 Years.
- You can save tax up to Rs 46,800 by paying the premium for Term Insurance Plan
- Term Insurance Plan helps protect your family and loved ones from any financial crisis by paying off the debts and liabilities in case of your untimely death.
- Premiums are low when purchased at a young age
- Term Insurance provides add-ons benefits such as – waiver of premiums, critical illness and disability to protect you from income loss
Benefits of Term Insurance Plans
Out of numerous benefits offered by a term insurance plan, some of them are listed below:
- You will get complete protection at a minimum premium
- The nominee can receive the annual income as a death benefit
- Protection against rising inflation
- Generally, term insurance offers policy rewards for maintaining a healthy lifestyle
- To enhance the policy coverage, a term insurance plan offers riders as well
- The best part is – a policyholder can save taxes under section 80C of the Income Tax Act
- Apart from critical illness coverage, the plan also comes with inbuilt complete and permanent disability cover
Best Term Insurance Plans in India 2022
There are several term insurance plans available in India. Some of the best term insurance plans in India 2022 are:
- Aditya Birla Sun Life Protector Plus Plan
- Bajaj Allianz eTouch Lumpsum
- Aegon Life iTerm Plan
- Bharati AXA Term Plan eProtect
- Edelweiss Tokio Life My Term
- IndiaFirst Anytime Plan
- ICICI Prudential iProtect Smart
- Canara HSBC iSelect + Term Plans
- Future Generali Flexi Online Term Plan
- Aviva LifeShield Advantage Plan
- Kotak e-Term Plan
- LIC e-Term Plan
- Sahara Kavach
- SBI Life eShield Plan
- PNB MetLife Mera Term Plan
- TATA AIA Maha Raksha Supreme
- SBI Smart Shield
- Shriram Cash Life Back Term Plan
Each plan has its own benefits and drawbacks. It is very important to understand that you should never buy a plan based on just the benefits. Check all the possible factors, such as:
- CSR (Claim Settlement Ratio)
- Market Value
- Fund Performance
- Background Check
Now that we understand the importance and the best term insurance plan available in India, it is easy to buy one for the family’s financial well-being. Make a checklist of all the important factors required to consider while buying an insurance policy. Compare the term insurance plans at Cover 360 and buy the most suitable one.