Term life insurance is a specific type of life insurance wherein the death benefit can be availed only within the tenure of the policy. This tenure is dictated by the term defined in the terms and conditions of the plan purchased online. Unlike other life plans available in India, a term insurance policy is less expensive because it does not provide any cash value on maturity. This plan becomes useful for the policyholder only if he or she passes away during the time frame in which the plan is valid.
Here, we help you take a quick look at the many benefits of term plans and some of the best providers of term life insurance in India.
Advantages of Term Life Insurance
Term insurance policies in India are provided by most reputed insurance providers. They are available for terms like 30 years, 25 years, 10 years, and so forth. One of the significant benefits of purchasing term life insurance is that some of them can be converted into regular life insurance plans by paying an additional premium; courtesy of an inbuilt feature that’s provided regardless of the state of health maintained by the policyholder. Given below are some other important benefits of term life insurance plans.
Term insurance policies serve to be smart and effective tools for building your financial safety net. In today’s world, which is ridden with innumerable health-related and other risks, these plans help you make provision for the financial security of your dependents in case you pass on.
Basic insurance product
Term insurance plans provide fixed, basic life coverage at affordable costs. They are important insurance tools with almost the same features as that of other life insurance products, albeit without the inclusion of expensive add-ons to enhance the premium amount.
The returns in the form of sum assured or death benefit are higher than the overall sum invested as term life insurance premiums. As they fit the needs and premium budget of one and all, these plans are rising in popularity with every passing day. In return of premium term insurance plans some term plans give up to 105% returns on premium in the form of maturity benefits!
As you go about your quest for the best term life insurance plans offered by reliable insurance companies in India, you will be surprised by the plethora of products and coverage on offer. You can choose the cover you desire to maximize the sum assured for your dependents in your absence. A sufficient coverage amount would be one that’s ten times more than your current income.
The good thing about customized term life insurance plans is that they give off several survival benefits that are not available in case of regular term plans. The Term Return of Premium Plans (TROPs) provide survival benefits as premium refunds if you happen to outlive the tenure of your policy.
The coverage offered by term life insurance plans lasts for a fixed period of time. In other words, you may want to take up the plan only for a fixed period so as to provide financial protection for your loved ones. Following this, it will be easy for you to retire in a more relaxed way.
Low claim rejection
Claim rejections are generally observed to be lower in case of life insurance policies being active for 10 years plus. Given this, it is recommended that you buy a term plan online to gain more confidence pertaining to your plan being honoured when needed.
Best Term Life Insurance Providers
LIC or Life Insurance Corporation of India, with a Claim Settlement Ratio of 98.31% ranks high on the list of term insurance providers in India. It is closely followed by Max Life with a Claim Settlement Ratio of 97.81%. Birla Sunlife with a Claim Settlement Ratio of 94.69%, Tata AIA Life with a Claim Settlement Ratio of 96.01%, Star Union Daichi with a Claim Settlement Ratio of 84.05%, ICICI Prulife with a Claim Settlement Ratio of 96.68%, etc. are other term insurance providers in the fray – take your pick!
Buying term life insurance online on insurance comparison sites like Coverfox.com is a breeze. Simply assess your coverage needs and premium budget before going about the processes of comparing and buying the best term plan online. Overall, the process is convenient, easy, and time saving – just go for it!