Choose the right term insurance plan for your family’s needs

When babies are born, we tend to protect the whole house from babies so that toddlers don’t bump into something and hurt themselves. As they get older, we take different steps to keep them safe. However, few of us imagine the day when we are not there for our children and they have to go through difficult times in life. But we can always help them by buying term insurance to help them meet their financial needs smoothly once we’re gone.

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The purchase of a term insurance plan is traditionally advised for only breadwinners. However, even if both parents are working, they can purchase term insurance for the family jointly or individually.

Once you buy a term plan, from your home loan to your personal loan, everything can be paid off in the event of death. You can choose a term insurance plan and pay the premium throughout the term. If you die before the end of the term, the beneficiary of the plan will obtain coverage for the sum insured.

However, before you finalize a term insurance policy, there are a few things that you need to consider that can help you get a better deal. here is a term insurance guide to help you :

Calculate the term insurance coverage you need

The first thing to consider when purchasing a term insurance plan is to calculate the coverage your family would need in the event of premature death. As you calculate this, you can factor in the number of family members, your children’s education level, the type of loans you are paying off, and inflation.

The duration of the plan

This is one of the most important things that you need to be very clear about. Many of us are confused when choosing the term. If you want your premium to be affordable, you can choose a term that is neither too short nor too long.

Choose riders wisely

It is quite important to choose the right riders. There are four types of riders, among which:

  • Additional coverage in the event of accidental death: If the insured dies as a result of an accident during the term of the policy, an additional amount will be paid to the beneficiary with the basic sum insured.
  • Critical Illness Coverage: If the insured is diagnosed with a critical illness which is also mentioned as one of the critical illnesses in term life insurance by the insurer, the insured will receive a lump sum.
  • Premium exempt in the event of disability: If the insured were to become permanently disabled during the term of the policy, they would not have to pay future premiums.
  • Premium exempt in the event of serious illness: If the insured is diagnosed with one of the critical illnesses listed in the policy, future premiums will be waived.

Claims settlement rate

While you are considering purchasing term family life insurance, you should check the loss ratio. It shows the level of efficiency at which the term insurance company pays for policies purchased by policyholders. It is strongly recommended that you opt for an insurance company that has a claims settlement rate of 95% and above.

These are all filters and not key points on the basis of which you are going to buy a term plan. You can visit the IIFL Insurance website and view the different terms Insurance plans offered by several term insurance companies. Choosing a term insurance plan for your family will be much easier with IIFL Insurance.

Interesting Related Article: “Why Term Insurance Is Better Than Other Types of Life Insurance”