What Are The Best Plans For Term Insurance?
Over the past few years, term insurances have taken massive strides when it comes to capturing the market. Not that they weren’t good earlier but more and more potential policy buyers are realizing the importance and benefits of term insurance policies. Before we get down to the best term insurance plans that you can buy, here are some of the parameters on which the list is based.
- Premiums
Each insurer has their own way of pricing their products. While one must not shy away from lower insurance premiums but it should not be the sole criteria. There could be a reason why an insurer is charging you higher premiums. Such as a better claim settlement process or several other features.
- Claim Settlement
The claim settlement ratio of an insurer is the yardstick for verifying how well they have fared as far as settling policy claims. A higher ratio indicates that you might have a much better experience related to claims. The ratio simply calculates the number of claims settled versus the total number of claims.
- Riders
Riders enhance the capabilities of your term insurance. An insurer that provides a higher number of riders should definitely be on your radar.
When you compare plans based on the above few parameters, here are the term insurance plans that come out on the top.
- LIC’s e-Term Policy
This is the online variant of the popular term insurance by LIC. Anyone within 18 to 60 years can buy this policy and the term ranges from a minimum of 10 years to a maximum of 35 years.
You can seek for a minimum sum assured of Rs.25 lakhs and there is no upper cap for the same. You get access to LIC’s reliability with a competitive premium amount and excellent claim settlement ratio.
- Tata AIA iRaksha Supreme Plan
The iRaksha Supreme plan is available only through the website. If you are looking for high sum assured without having to shell out a lot of money, you must consider this policy. You have the option of paying the premiums at a single shot or for 10 years or for 5 years.
The age limit of the policy ranges between 18 years and 70 years and you can buy the policy for a minimum of 10 years and a maximum of 40 years.
Some Medical Conditions That Could Be Reasons to Attach Rider In Term Insurance
Most of the term insurance plans available in the market focus solely on providing the maximum life cover. However, you can add some features to the plans if you are not happy with what you have at your hands. There are a couple of medical conditions for which you must consider the following riders.
- Disability
Aftermaths of an accident can be quite devastating and more so if it results in disability of any form. Whether it is partial disablement or total disablement, things can get a bit difficult if the policy holder is the sole bread earner of the family. If this rider is selected, it can prove to be a source of income for the family.
- Critical Illness
Should you select this as a rider for your policy, the insurer will pay a lump sum amount on the detection of the listed critical illness. The list usually includes conditions such as cancer, cardiac arrest, paralysis, organ transplant, kidney failure etc. Depending on the terms and conditions of the policy, the sum assured paid might be deducted from the total sum assured of the term insurance.
Why Policy Holders Attach Riders to Term Plans
A native term insurance plan is quite useful in itself. Since different people have different expectations from their policies, riders come into the play. A rider is an easy way of extending the benefits and features of your term insurance without having to buy another policy.
While most of the riders are available at some additional costs, one should not be surprised to see some riders as a part of the native policy. For an instance, some insurers have started providing critical illness cover along with their term insurance plans at no additional cost. The Accidental Death benefit is another prime example, where it allows the policy holder to increase the sum assured to two times.
Having said that, one must be a bit careful while choosing riders. Opt for them only if fits your list of requirements and not because someone else bought it.
