The best term insurance plan offers a lot more than a seemingly attractive premium price tag. It’s quite understandable if getting a bargain on a purchase makes you feel great about it. However, when it comes to making investments in term insurance plans, the cheapest is not always the best you can get to protect and take care of your loved ones. We thought of highlighting some important benefits that you must look for before selecting and investing in the best term insurance plans.
The best term plan is rather the one that helps you and your dependants avail the maximum benefits from buying the policy in the first place, with the least amount of hassle involved.
Best Term Insurance Plans: Benefits to Look for
Here are few ways by which getting the best online term plan should benefit you and your family:
1. Offer A Simplified Process of Filing & Settling Claims:
Buying any insurance plan is almost always super easy, with the seamless online user interface and cooperative sales staff. It’s the last step of actually filing for the claim and engaging in its settlement process that is often frustrating.
Needless to say, this step is the actual reason why any insurance is bought in the first place. If you go for the best online term plan, you’re likely to not suffer when you are trying to redeem what you paid for. The best companies are always transparent and come with a simplified, honest claim settlement process and a healthy claim settlement ratio.
2. Pay Regular Income At Least For A Few Years:
If you get yourself the best online term plan, another good thing you’ll be equipped with is the choice to select your preferred type of payout. The best companies always allow the choice to pick the optimal combination of a lump sum benefit along with regular monthly payout, for at least the initial few years. If you are the sole bread earner, this regular monthly payout can be a big support and strength for the family in the event of an unfortunate situation.
3. Offer Support Even in Non-Death Contingencies:
Life doesn’t come at a standstill with only death. Many other situations can place a dent in one’s smooth life functioning. For instance, disability or critical illnesses completely affect one’s ability to work. This has implications on the earning capacity and can impact the standard of living significantly.
All term plans do not provide cover for critical illnesses, such as cancer or heart-related ailments that not only attract significant expenditure for treatment but can also be life-threatening. On the other hand, there also may be situations such as loss of employment that can have adverse financial implications. Alternately, you may have taken personal loans and you wouldn’t want the burden of the same to spill over to your family. The best online term plans come with the option of including additional covers called riders- like accidental disability rider and critical illness rider.
4. Give You the Option of Return of Premium:
It won’t be surprising if you say that you shy away from investing in the optimal amount of life cover because, at the onset, the premium payment feels like a probable sunk cost. However, the best insurance plan can provide you with great relief in this sense. The best term plans come with the option of return of premium (ROP) that can help you effortlessly make the best and most meaningful decision.
In vanilla insurance policies, the insurance company only pays out when the insured person dies. However, in ROP term plans, you are entitled to receive the premium you had paid if you are still alive, at the end of the policy period. This provides a good cushion to be able to invest confidently, take care of your family in case of your death or receive back the premium if you continue to survive.
5. Option to Increase the Sum Assured at Major Life Stages:
It’s quite hard at a given date to predict the exact amount of money you’d like your family to receive on an uncertain future date when you’re no more. As life goes on, factors such as the standard of living, assets and liabilities on your balance sheet, and the level of inflation undergo a change. This can impact the sum assured you’d like to leave behind to your loved ones. A good term plan gives you the freedom to increase that amount at your major life stages (like marriage, the birth of your child, buying your dream house) so that you can be at peace that your dependants will be taken care of.
Hence, spending time to research and compare online term plan suited to your needs is worthwhile to realise the meaningful benefits that come with the same. Now, that you know the term insurance benefits to consider, these shall guide you choosing the best term insurance plan for you and your family. What are your views on the same? Do share your feedback in the comments section.