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5 Things to Consider Before Buying Term Life Insurance

Term Life Insurance in India
Term Life Insurance in India

As your responsibilities increase, it becomes more critical to safeguard the present and plan for the future. Life insurance is an effective financial planning tool that offers a variety of benefits, including protection, savings, and tax advantages. However, before you purchase the best term life insurance in India, it’s critical to arm yourself with the knowledge necessary to select a plan that meets your needs and requirements.

Keep the following five points in mind as you make your life insurance purchase decision:

  1. Purchase for the Correct Reason

Recognize the rationale for purchasing insurance. Bear in mind that you’re purchasing insurance to help you save for specific goals, protect your life, and ensure the financial security of your dependents. Do not purchase insurance solely for the purpose of obtaining secondary benefits such as tax savings.

  1. The Amount of Life Insurance Coverage

The premium amount is determined by the amount of life insurance that you choose. As a general rule, you should have at least ten times your annual income in life insurance. Additionally, you can use premium calculator to obtain a premium estimate. You can also buy online term plan in India.

  1. Policy Duration

Your ideal term for a life insurance policy should be equal to your ‘Retirement Age minus your Current Age’. This means that if you are 35 years old and wish to retire by the age of 65, your policy should have a duration of at least 30 years.

  1. Supplemental Coverage and Benefits

Add-ons are benefits that supplement the base cover, such as a critical illness rider, an accidental death benefit rider, a premium waiver rider, or a disability rider. These are advantageous add-ons that can be selected for a nominal premium. This is a very crucial aspect to consider before selecting the best term life insurance in India.

  1. The Life Insurance Company’s Credentials and Claims Experience

Prior to purchasing an online term plan in India, it is critical to verify the company’s credentials.

  1. Claims Settlement Ratio – This metric indicates how many claims an insurance company pays out for every 100 claims registered.
  2. Assets Under Management (AUM) – This term refers to the financial services company’s current market value of the funds it manages. A higher AUM indicates that the portfolio is robust and profitable.
  3. Solvency Ratio – This is a ratio that is used to determine a company’s financial stability. It is a measure of the company’s ability to repay long-term debts. A higher solvency ratio indicates that a business is well-positioned to pay claims.

Additionally, excellence in customer service, audits, and corporate governance practises provide critical information about the company’s overall performance.

It hurts us all to think of our loved ones having to shoulder a load of debt repayment without proper help. As a result, it is critical to comprehend how to select the ideal term insurance plan in India by carefully analyzing one’s debts and responsibilities.

If there is one trend that stands out in terms of popularity, it is the trend of buying a best term life insurance in India. Protecting the lives of your loved ones through term insurance is critical in the current climate. However, before you purchase a policy, you should understand why purchasing term insurance online is worthwhile.

About the author


The author is an experienced writer in the Insurance Policy field and has written so many articles related to Health Insurance, Term Insurance, Car Insurance & Investment, and other topics.

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