The term insurance policy is known to be the cheapest health insurance policies available in the market. Despite low premiums, it provides critical illness cover and accidental death cover as well.
What is Term Insurance?
Term insurance is a type of life insurance plan which is the simplest form of a health insurance policy. It is very affordable in terms of finance as well. A term insurance policy is a plan in which you pay the premiums at certain fixed duration. If your unfortunate demise takes place, the nominees that you registered will receive the assured amount which has to be selected while choosing the plan. The term insurance policies are specifically designed to help the families and secure them from unexpected circumstances.
The term insurance plan is active for a period which is referred to as term. Many of the term insurances available in the market provide critical illness cover as well as accidental death cover. The term insurance plan is beneficial for giving financial protection to your family in your absence.
Factors Affecting the Term Insurance Plan
Some of the term insurance plans have higher premiums while others may have the cheapest. The amount of premium to be paid for your term insurance plan is not the sole reason for choosing the plan; the following points play an important role as well:
- The reputation of the Company – You should always check the experience and the financial stability of the company before choosing it.
- Required Coverage - For your term insurance plan, choose the coverage needed and check what all benefits fall under that plan.
- Claim Settlement Ratio of the Insurance Company – Claim settlement ratio is the number of death claim approved against the number of death claim applied. Lesser the difference, better the company.
- Tenor Plan – The tenor of the plan is as important as the amount of coverage of the policy. If it is of very less tenor or the tenor ends at your early age, it is not going to help you somehow.
- Consideration of Inflation – It is crucial that the insurer provides you the inflation coverage over the years by increasing the amount. If not, you might get quite less amount at the end due to the inflation taking place over the years.
How to Select a Term Insurance Policy?
The term plan along with the return of premium option is comparatively expensive as it gives you the premiums back on the completion of the tenor of the policy. There is maturity benefit in such life insurance plan against its expensive premiums. The cheaper term insurance plans might attract you, but it has no maturity benefits. If you are selecting any plan, it should meet your requirements and should provide to secure your family during your untimely demise. However, the selection of a term plan depends entirely on your requirements and financial ability to pay the premiums of the protection insurance.
Bajaj Finserv Term Insurance Plan
The Bajaj Finserv has a term insurance plan is the life insurance plan which they provide promisingly. It comes with several benefits like an affordable insurance plan, customization as per your need, comprehensive coverage, premium waiver, premium payment options, flexible policy terms, tax benefits and benefits for non-smokers.
Before choosing any term insurance policy, it becomes essential to look for the above information for getting the
best protection insurance. Having a look at the pros and cons of the plans that you find in the market, will help you choose the best like a term insurance plan of Bajaj Finserv. The term life insurance plan of Bajaj Finserv also gives quick financial security with ease. However, it is not necessary that the most inexpensive term insurance plan will be the best one to opt.