Human lives are filled with uncertainties that make things unpredictable for us. It is important to plan your life accordingly so that your loved ones are not troubled in your absence. There are plenty of measures you can take to safeguard your life, and insurance policies are one among them. Yes, these are the best mechanism to create a staunch saving strategy and plan for your future.
There are different types of insurance policies available in India according to different customer needs. A term plan is one such insurance policy that is meant to cover your specific financial needs.
What is the Term Plan?
It is a form of insurance policy that an insured take for a specific period of time in order to meet particular life goals. These goals can be anything like retirements, children’s higher studies or education, financial contingency plan, etc. Unlike life insurance, term plan gives you death benefits as well, that means if you die before the maturity of the plan, your nominee will receive the entire sum assured.
How do we Find The Best Term Plan Provider?
There is an abundance of insurance providers in the market who are fulfilling the requirements of the customers. So, how do you find the best insurance provider among the lot? Here are a few factors that you can consider while picking up the best term plan for yourself.
#1 Reviews and Recommendations
You need to first check the reviews of the concerned insurance provider and ensure their credibility in the market. If the company has got good reviews and recommendations, you can go forward with their services.
#2 Claim Settlement Ratio
It is simply the ratio of the claim that the company is able to settle. For instance, if a company has a claim settlement ratio of 98%, that means they have settled 98 claims out of 100. It is advised not to look for companies with a CSR below 95%.
#3 Premium Amount
It is the insurance company that decides the premium amount for your plan. Doing homework prior to approaching them and using a term plan premium calculator will help you in contributing to the process and emerge as a smart customer.
#4 Types of Term Plans
There are different types of term plans available for the customers that differ according to their purpose. It is essential to ensure the range of term plans provided by the concerned company. Also, ensure the additional services they offer.
The Bottom Line
Picking up a term plan for yourself is a piece of cake if you know the right way to go about. Once you are well aware of how to filter the best insurance company, the process is straightforward after that. The above mentioned are a few points you must consider before approaching a company.