How to Pick the Right Term Insurance Plan?

Ever bought a coconut? The vendor tells us that it is filled with sweet water, but despite knowing the vendor for decades, we would still shake the coconut, try to listen for any signs of water inside, knock it probably and recheck with him a couple of times more about coconut having sufficient water inside or not. Imagine doing this with a coconut that costs just a few rupees and won’t even make an ever-lasting difference in your life. What about making a decision to buy a term insurance plan?

The need to buy an insurance plan is understood by everyone, but which plan to buy and how to select the best term insurance plan is confusing for most people. Out of so many options, it becomes a task to choose the best one that meets your requirements.

To make things simpler for you, here is a list of factors that you need to keep in mind while going through various options:

1. Priorities

The first consideration should be about your priorities. It depends on how much income you have, your liabilities, dependents in the family and overall savings. In the event of your unfortunate death, your family should get enough financial cover to tide through the crises that may arise. The insured amount should ideally be atleast 10 times more than your current annual income. However, factors like loans, future goals, children’s education, and marriage plans also should also be considered while selecting the life cover in an insurance plan.

2. The period or policy term

The tenure of the policy is also an important factor to be considered. You should buy a policy that covers you for a longer period atleast till age 75. Having an insurance cover that lasts for 30 years is an ideal plan to take care of any financial obligations. The best term insurance plans in India to come up with long-term plans for your benefit; it’s better to start when you’re young to pay lower premiums.

3. Inflation

Inflation slowly reduces the value of your investments over a period of time without you even realizing about it. It is of utmost importance to select a policy that offers to raise the coverage amount by atleast 5% every year to counter inflation during the policy tenure. Edelweiss Tokio Life Zindagi Plus understands that your increasing responsibilities and inflation rate. It is a plan which offers the Top-Up benefit where the sum assured will increase every year.

4. Comparisons

It is not enough to go for a plan with the lowest premium. The best way is to compare term insurance policies thoroughly online and go through their terms conditions and features in detail. Search online to find out everything about all term insurance products offered by all the players in the market. A few plans will match your requirements like Edelweiss Tokio Life – Zindagi Plus is a term insurance policy which provides considerable life coverage at a nominal cost. The USP of Edelweiss Tokio Life – Zindagi Plus is the ‘Better Half Benefit’. Under this, after the demise of the policyholder, a life cover will start in his/her spouse’s name. A very important feature of this benefit is that it also covers housewives.

Gone are the days to deal only with your neighbourhood insurance agent. This is the era of technological advancement where you need to go online, find out about insurance products, compare term insurance policies on your own and then select the one best suited to your needs.

Your life is precious to your family, insure it now!

Neha Panchal - Financial Content Writer

Neha used to be an Engineer by Profession and Writer by passion, which is until she started pursuing full-time writing. She's presently working as a Financial Content Writer, with a keen interest in all things related to the Insurance Sector.