A term insurance is a pure life insurance that provides no cash value and pure financial protection the beneficiaries. Term plans are cheaper when compared to the whole life insurance plans. The best term insurance plans depend on various factors and your requirement. You can choose the right term insurance plan that is best for you by comparing multiple plans, their features and benefits. Before buying a term insurance plan, look for the following features.
- Claim Settlement Ratio: It’s the indicator of how many claims have been received in a financial year and how many claims have been settled by insurer. This report is generated by Insurance Regulatory and Development Authority (IRDA). Check how many insurance claims have been settled by each insurance provider. Choose the one that has the highest settlement ratio.
- Sum Assured: The total sum assured may vary from insurer to insurer based on the premium and plan. Ensure that your family is well protected financially. Choose the amount that will provide adequate cover to your family.
- Policy Term: This is an important factor as the term plan does not have maturity benefit. Now there are insurance companies that provide cover up to 90 years of age. Choose the plan that provides longer coverage even if the premium is higher.
|Term Plan||Claim Settlement Ratio||Maximum Maturity Age||Maximum Cover|
|Aegon Life Term Plan||97.1%||100||No upper limit|
|Canara HSBC OBC Life Insurance iSelect||93.2%||80||No upper limit|
|Tata AIA Life Insurance Sampoorna Raksha||98%||80||No upper limit|
|SBI Life e-Shield||97.7%||75||No upper limit|
|HDFC Life Click 2 Protect Plus ||97.6%||75||No upper limit|