Are you a young professional? If the answer is yes, buying term insurance should be your priority in the present scenario. The market already has diverse insurance plans of various kinds, so you can often get confused with regard to the best plan to buy. Let us look at some of the best term plans in India in terms of their features and attributes.
What to Look For in a Term Plan
There are quite a few things to watch out for while selecting the best term plans in India.
- Terms and Conditions- Verify whether the term insurance policy has any particular inclusions or exclusions. Look at the terms and conditions minutely as well.
- Application and Premium- You should check the application procedure and whether it is straightforward or complicated. An online process is ideal in this scenario. Simultaneously, review whether medical tests will be needed and also whether there are any other criteria. Also look at the premium amount applicable for the coverage that you desire. This can be compared across multiple insurers to get a better idea.
- Key Aspects- Look at things like processing fees and other charges, if any, along with the premium payment options. Also check whether you can get the sum assured distributed flexibly to your nominees through monthly income or a lump sum or even both.
These are some of the aspects that you should closely examine while comparing term insurance plans in the country. At the same time, do not forget to check whether you can integrate riders or add-ons into your policy, which may help widen the scope of overall coverage by a great deal. Also, calculate your coverage amount in advance and see whether you can afford the premium payments. This can be done by using an online calculator to work out the premium amount that is payable for the coverage you want. The amount can be computed by adding future projected costs (with inflation) of running the household, higher education expenses, and repayment of loans, if any. Subtract your current assets and savings from this amount, and you will be good to go.
Final Thoughts
The key objective should be securing your family members and loved ones financially so that they do not struggle if something happens to you in the future. Term plans are reasonably priced and can be flexibly adjusted as per your specific requirements. You can keep adjusting coverage in the future based on your evolving requirements as well.
Choosing the best time to start investing in term plans is also very important. You should begin as early as you can, ideally to get higher coverage amounts for a comparatively lower premium amount. Insurance companies mostly perceive younger policyholders as less vulnerable to various ailments, thereby enabling them to get lower premiums for their policies. What you pay in your 20s or early 30s will naturally be considerably lower than what you would have to pay otherwise when you’re in your 40s or 50s.