Top 5 Best Term Insurance Plans in India 2018

A term life insurance plan offers pure risk protection. If a policyholder dies within the term of the plan, the insurer pays your family the sum assured. Your family meets living expenses, children get good education and loans are repaid. Term life insurance has no survival benefits.

SEE ALSO: How To Select Best Life Insurance Plan According To Income?

Types of term life insurance plans:

Level term life insurance plans: In Level term life insurance plans, the sum assured does not change during the tenure of the policy. The benefits are paid to the nominee (This may be a beneficial nominee) on death of the policy holder, within the term of the plan.

Return of Premium plans: Unlike normal term life insurance plans, the return of premium plans have a maturity benefit.

Increasing term plans: You can opt for an increase in the sum assured at an annual frequency during the term of the plan. The premiums would remain the same.

Decreasing term life insurance plans: These plans are the exact opposite of the increasing term plans. The sum assured would decrease each year, so as to match the financial needs of the policyholder.

Convertible term plans: The convertible term plans have an option where these plans can be converted into other types of plans at a future date.

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Top 5 Best Term Insurance Plans in India 2018

What are the advantages of online term life insurance plans?

• You can avail online term life insurance plans at the click of a mouse.
• Online term life insurance doesn’t require insurance agents or any other intermediary. The insurer saves on commissions and you get online term life insurance plans at a discount.
• You fill the insurance proposal form yourself. You would be more honest with the disclosures.
• You have online term life insurance calculators which help you choose term plans based on premiums.

SEE ALSO: 3 Reasons To Avail Term Life Insurance Plan After 50

Documents required for term life insurance plans:

• Age Proof: PAN Card, Voters ID, Passport, Driving License and School/College Certificate.
• Address Proof: Utility Bills like electricity and water bills, Passport, Ration Card or Bank Passbook.
• Photo Identity Proof: Voters ID or Driving license.
• Recent passport size photographs.
• Income proof: Salary slips or form 16.

If you are availing term life insurance online, you can upload the relevant attested documents.

SEE ALSO: Term Insurance for NRIs in India

When is the period of term insurance increased or decreased:

Opt for sufficient coverage in the term life insurance plan. You don’t want the money nominees get to dry up. The amount of term life insurance depends on life goals. If life goals increase (let’s say the size of family increases), you need increasing term life insurance.

If you avail a home loan, take a decreasing term life insurance plan. The sum assured matches the home loan outstanding amounts, as EMIs are repaid. You save on the premiums.

Riders in term life insurance:

Avail riders in term life insurance which is additional protection at a slightly higher cost. Opt for a critical illness rider, where you get money on diagnosis of a critical illness like heart ailments, stroke or kidney failure. You can also opt for the accidental death benefit rider, which is an amount over and above the sum assured, on death of the policyholder in an accident.

Top 5 Best Term Insurance Plans in India 2018

Before choosing the term life insurance plan, take a look at the features of top 5 best term life insurance plans.

• Check the claim settlement ratio of the insurer. It must be over 90.
• The claim settlement process must be hassle free.
• Look at the after sales service.
• Check for exclusions in the term life insurance plan.
• Term Insurance offers many riders. Choose the ones relevant to you.
• Check how old the insurer is. (The number of years he has been in the business).
• Opt for lower premiums, but remember, cheap does not mean best.
• Go for a medical test before availing term life insurance plan. This will ensure a hassle-free settlement.

If you want to know more on life insurance, get in touch with our wealth doctors. Our wealth doctors are qualified, well trained and offer free unbiased financial advice.

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