How to Choose Best Plan For Term Insurance:  One of the most popular life insurance plans are Term Plans as they offer simple products at affordable prices. Term Insurance can help your family’s financial future, even you are no longer around. A term insurance plan provides the benefit of paying the sum assured under the principal corpus to the nominee of the policyholder in case of death of the policyholder during the policy term. Thus, it is very important to choose best plan for term insurance.

How to Choose Best Plan For Term Insurance?

Here are the few steps you can follow while choosing a term insurance plan: –

1. Type of Plan:- Basically, term plans are pure protection plan without maturity benefits. Apart from the basic life insurance policies, you can choose from available plan options that provide a monthly income for your family’s living expenses apart from the lump sum cover. So, choose a plan that best suits your requirements.

2. Duration of Cover:- Most of the companies in India offer policies for 10 to 50 years to their customers. You have to choose one that covers your needs comprehensively. You can calculate it in simple form as Income *  Working Years = Protection Cover. Though it is difficult to calculate accurate numbers, but you can also weigh in an average yearly inflation rate of 6%.

3. Consider the Premiums:- It is very important to choose a plan that allows you to pay the premiums regularly with the equally matching benefits. The amount of premium payable must be proportionate to the amount of coverage that the plan offers.

4. Keep the Future in Mind:- Basically, term insurance serves as a future guaranteed plans. It provides the benefit of paying the sum assured under the principal corpus to the nominee of the policyholder in case of death of the policyholder during the policy term. Therefore, any decision regarding insurance must be prospective and should be made keeping in view factors like inflation, future goals, etc.

5. Take Timely Decisions:- If you take more time to decide, the cost of the plan may increase and the coverage terms may be limited as per your requirements. Therefore, you must make a timely and an informed decision on priority basis.