5 Features You Need in Your Term Insurance Plan
Term insurances, for years, have been considered to be purely protection investments. This means it solely offers coverage benefits to beneficiaries in case of the policyholder’s untimely passing. Nevertheless, if you decide to get this plan from a top insurance provider, you may even secure a tailored term plan.
Yes, in exchange for regular premiums, now a variety of term insurances are available. Let’s explore more about the features of a tailored term insurance plan that boosts your financial position and offers enhanced coverage benefits.
Why Choose a Term Insurance Plan at All?
Term plans, as you know, are basic plans that do not come with many strings attached. It is a simple exchange between the insurer and the policyholder. You’d be paying premiums on a fixed basis for a term in exchange for coverage. Now, when the element of flexibility enters the picture, the benefits extend from offering just a sum assured. In fact, you have the opportunity to convert it into one of the best term plans. Let’s see how.
Features of the Best Term Insurance Plan
Once you opt for term insurance from a top insurance provider, you get to tailor it accordingly. This brings several features to your table of financial savings. Here are some of them listed below:
- Tax Benefits
When you opt for a plan that has premium payments summing up to ₹1.5 lakhs per annum, you become eligible for tax deductions. Section 80C of the Income Tax Act 1961 enables you to save on taxes.
- Flexibility to Convert the Plan
A flexible insurance provider would allow you to switch from regular term insurance to a whole life insurance plan. This gives you the scope to opt for the best term insurance plan whenever you feel financially ready. It gives you coverage benefits up to 99 years of age or for your whole life. For instance, if you get insured for an amount of ₹1 crore and pay a premium till the age of 60, the coverage shall extend for the whole life. Upon the policy term’s end, you may receive the premium amount paid, ending you up with a calculated benefit.
- Different Plans
The best term plan is not only a standard term insurance, but it has different types to choose from. Mainly, there are increasing, decreasing, joint, convertible, and return of premium term plans.
- Additional Coverage
Another significant feature to look for when securing the best term insurance plan is considering riders. While they may be optional add-ons, they take your plan’s protection to the next level. Popular riders include:
- Accidental Death Benefit
- Waiver of Premium Rider
- Critical Illness Rider
- Disability (Temporary/ Permanent)
- Claim Settlement Ratio (CSR)
While it gets overlooked many times, CSR is one of the most important features of any insurance plan. It basically determines the reliability and credibility of an insurance company. If the percentage of the claims is higher, it reflects their insurer’s promptness and efficiency in settling claims.
How to Secure the Best Term Insurance Plan
The insurance market is huge, and there are many providers. However, choosing among them becomes tricky when it comes to finally navigating the ideal one. Therefore, here are a few points that might help you with the same:
- Research Insurance Companies: Ensure you are dealing with reputable companies that have a strong background and high claim settlement ratio.
- Compare Plans: Look at features and renewable options. Check for riders, such as an accidental death benefit and exclusions under the policy.
- Choose Mode of Purchase: Get quotes online or from an insurance company. Purchasing through an official website might be best for personalised recommendations.
- Tailor Coverage: Choose an adequate death benefit amount for a suitable term on the basis of your present and future liabilities and needs.
Get Your Best Term Plan Today!
With all the essential information about a term plan at your disposal, you shall go through a couple of insurance providers. This search might lead you to one of the best online insurance providers in the market like Canara HSBC Life Insurance. Given their years of happy service in the market, you can explore their official website and invest in any of the online term plans hassle-free.
Get insured and enjoy peace of mind by having the required financial security today!
