Term insurance offers financial coverage for a certain ‘term’ or period. In the event of the death of the insured within the policy term, the sum assured is given to the beneficiary. Term insurances typically offer high coverage at low premiums. The premium paid is eligible for tax deductions under Section 80C of the Indian Tax Act.
Data from Benori Knowledge says that India ranks 10th in the global life insurance market with 3.2% penetrationas of 2021 ahead of China and the UK. This is almost reaching the global average of 3.3%. If you too are thinking of covering your family when you are not around, here’s how to buy term insurance in India.
Choosing a Term Insurance
Before buying an insurance, learn how to choose the right one.
- Calculate how much coverage will be required. Considerthe financial needs of your family if you meet with an untimely death. Now use a free and hassle-free online calculator that requires you to enter a few basic personal details and policy details to understand the premium amount. Pick a life insurance company that offers an online illustration of the product to help you understand better.
- Decide on till what age you will need the coverage. Take your financial liabilities into account and then consider an extended tenure for your dependents if you are the sole breadwinner of the family. This can help them meet their goals too.
- See if premium payment choices are available like single pay (lumpsum amount) or regular pay is available.
- Analise your debts, investments and current income. This can offer a practical picture of the cash flow and helps you choose the most suitable plan.
- Work with an insurance company that has a claim settlement ratio as high as 96%. This is the percentage of claims that a company has settled in a year out of the total claims that were made.
Make sure to read the terms and conditions of term insurance well. Talk to an expert, if required, for product recommendations. This can help you efficiently put a safety net over your loved ones in future.
How to Buy a Term Insurance
Simply visit the website of a reputed insurance company in India. Now, explore its range of term insurance products and pick the one that best suits your need. It is a good idea to work with a company that assures lesser paperwork, affordable premiums and an easy-to-follow buying process. A top-tier insurance provider offers online insurance plans with clearly outlined benefits, illustrated examples and fast purchase options. All of these can help in quick and well-informed decisions. You may also take the help of a chatbot on its website for any kind of assistance during product selection or purchase.
The earlier you get term insurance, the lower your premium will be. Consider buying online to skip the hassle of extra charges or brokerage commissions. Besides financial protection, term insurance can also be helpful in times of serious illness or debt repayment.