How to Choose the Best Term Insurance Plan for Better Benefits

If the last year or so has taught us something, it’s that life can be unpredictable, and in the case of the main bread earner’s untimely death, the entire family is majorly impacted. In these trying times, not being adequately prepared in financial terms can worsen the stress, but such a situation can be prevented. In order to better prepare and stay on the safer side, investing in the best term insurance plan as soon as possible to safeguard your as well as your family’s financial future is very important.

Term insurance is a type of life insurance plan that requires the insurer to pay certain premium amounts at regular intervals for a specific period of time. This amount will be paid to the nominee in case the insured passes away during the policy term. In any case, when choosing the best term insurance plan for you, it is important to keep certain things in mind so you can invest in options that give your maximum benefits:

• Cover Amount: One of the most important decisions when choosing the best term insurance plan is the coverage amount. Instead of going with widely advertised amounts like one crore or similar, consider your life stage as well as the number of members you would like to cover in the insurance. Financial requirements also increase with age so take into consideration the age and lifestyle of your dependents. Judging by this information, you will be able to determine the ideal amount for you.

• Claim Settlement Ratio: When choosing an insurance company for yourself, remember that the higher the claim settlement ratio, the better. A high claim settlement ratio reflects on the company’s ability to settle its received claims within the right time period. Going for well-known insurance companies like ICICI that have a high claim settlement ratio will help build trust and security.

• Solvency Ratio: A good solvency ratio is also important to indicate your insurer’s financial abilities to payout your claims, especially in times of emergencies like natural disasters when many claims tend to be received in a short period of time.

• Riders for Maximum Benefit: Riders are, basically, add ons you can attach to your term insurance plan to get additional benefits through the investment. Don’t be scared to negotiate and take a look at all the available riders to best customise your insurance plan to suit your needs. Riders like critical illness cover, accidental death benefit, disability cover, employment loss cover, etc., are offered by many companies.

• Payout Options: When the time comes for the insured amount to be credited to the nominee, you can choose from different payout options to help them manage their finances better. Payout options include lump-sum credit, lump sum with monthly income credit and only income credit.

Keeping in mind these points, you can choose the best term insurance plan for you and your family. Take a look at ICICI Prudential Life’s term insurance plan, made available by the company for your maximum convenience. ICICI has a high claim settlement as well as solvency ratio, so you can rest assured your money is in safe hands.