Term Insurance: Comparison - How these parameters helped me choose the right plan?

Monday, 18th September 2017 (all day)

Location: India

This event is in the past.

Just like life is unpredictable, events and accidents are too unpredictable. Certain uncertainties may leave your family members and loved ones devastated. Since you can’t take control of such unforeseen situations, they often wipe-off your finances and savings. This is when ‘Insurance’ provides a helping hand! It acts as a tool to safeguard your family’s financial future. To be precise, term insurance is one of the simplest and purest form of life insurance.

Today, you are spoiled with varied choices, all thanks to the 25 + life insurers and around 100 + plans in India. But, do you blindly buy a plan that first comes on your list or compare the different term plans available before buying one? Well, if you opt for the first option, let me divert you to the importance of opting the later! Mentioned below are the reasons why this is imperative and the key criteria that should be kept in mind while buying a Term Insurance Policy.

The Need to Compare Term Insurance Plans

Term insurance are the best life insurance plans since they secure your family’s health and future.  But, with a variety of plans available, narrowing down your search on the ideal term plan would be a task.

Comparing term insurance plans gives you a chance to go through the features, benefits, exclusions, etc. of different term plans at a single-click. Besides, you also save money on your premiums since you can opt for a plan that is pocket-friendly and as per your requirements. This helps you in understanding the policy as well as making a perfect choice.

Important Parameters for comparing Term Insurance Plans

1) Price

Though price is a key factor while taking a decision, it should not be on the forefront. The idea should be to get a plan, which gives you a better deal considering cost of the policy and how much you can afford. Comparing term insurance plans allows you to view the best deals vis-à-vis the coverage and analyze the price as per your needs.

This would help you get a right term insurance plan at a maximum coverage!

2)  Sum Assured

Sum Assured plays an important role, as this amount will safeguard your family’s finances in your absence. Typically, one needs to buy a Term Insurance Cover at least 15-20 times of their current annual income.

Inflation is one of the most important factor, you can’t afford to give a miss!. The sum assured you choose should be sufficient to handle your family’s financial future. Another point to consider is your current and future liabilities/ mortgages (like Home Loan, Personal loan, etc.). Considering both the factors you can derive at the required sum assured. This amount helps your family to pay off any debts and protect them financially for their basic needs.

Though, sum assured is the most important factor, you should also remember that the premium rate will increase if the cover amount/ sum assured increases. Comparing term insurance plans will help you get a good sum assured that would take care of your family’s finances once you leave the world.

3) Need Analysis

It is obvious that, your needs would differ at different stages of life. This means if you are single, the kind of insurance plan you need would differ when you marry and have a kid. Before taking a leap, it is advisable to understand your present and future obligations before choosing the right plan.

Comparing term insurance plans would help you settle down on an ideal plan as per your requirement.

4) Claim Settlement Ratio

Claim settlement ratio is nothing but the insurance company’s financial credibility to settle your claims. Higher the claim settlement ratio, higher are your chances of getting the claim settled hassle-free. It is one of the major factors to be considered while comparing a term insurance plan. It is the percentage of claims settled by the insurer versus the number of claims received in a financial year. So, if a company settlement ratio is above 95% every year, then it is considered to the best.  Therefore, it is wise to check the claim ratio before buying the product..

5) Ease of Buying (Online/ Offline)

Nowadays, it is easier to buy term insurance policies you can go online and compare plans to know which the best plan is. To simplify the decision making process, you can compare each plan online. Also, a term plan bought online is cheaper as compared to offline as there is no intermediaries involved.

Besides, comparing term insurance plans online would keep miss-selling, under-selling and over-selling at bay. Comparing term insurance plans online would help you buy a plan just as per your requirements. The tenure, sum assured as well as the additional riders can be compared before finally settling on a term plan.

Term insurance plans are the most simplest and pocket-friendly life insurance plans. Comparing term insurance plans is very essential before you settle down on a particular plan. You simply have to go online and compare quotes, features, benefits, exclusions, etc. of different insurers. For hassle-free and unbiased comparisons, you may visit With their expert knowledge, you would end up buying the best term insurance plan.  So, buy a term plan today for covering up the financial hardships in case of your untimely death. When buying, beware. Always compare the term insurance plans available in the market before you choose one. After all, you wouldn’t want to buy the second-best, would you?

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