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Term insurance with return of premium is a type of life insurance policy that provides financial protection to your loved ones in case of your untimely demise. It pays out a lump sum amount to your nominated beneficiaries upon your death during the policy term. A term plan is an affordable way to ensure that your family is financially secure even in your absence.

Choosing the right term plan can be a daunting task as there are various factors to consider, such as the policy term, sum assured, premium, riders, and exclusions. In this blog, we will guide you through the process of selecting the best term plan that meets your specific needs and budget. We will also discuss the factors that you should consider before purchasing a term plan.

By the end of this blog, you will have a clear understanding of how to choose the best term plan that provides maximum protection to your loved ones at an affordable cost. So, let’s get started!

What is term insurance with return of premium?

Term insurance with return of premium (TROP) is a type of life insurance policy that provides financial protection to your loved ones in case of your untimely demise during the policy term. In addition to the death benefit, a term insurance with return of premium policy also provides for the return of all premiums paid by the policyholder at the end of the policy term, provided the policyholder has not made any claims during the policy term.

The term insurance with return of premium policies are suitable for individuals who want to ensure that their loved ones are financially secure in case of their death, but also want the security of getting their premiums back if they outlive the policy term. The return of premiums feature adds an additional layer of protection for policyholders and their families, as it ensures that the policyholder’s premiums are not lost if they do not make a claim.

There are various types of TROP policies available in the market, and they differ in terms of the policy term, sum assured, premium, and riders. It is important to carefully review the terms and conditions of a TROP policy before purchasing it to ensure that it meets your specific needs and budget.

How to choose the best term plan in India?

Choosing the best term plan in India can be a challenging task as there are various factors to consider and a wide range of options available in the market. A term plan is a type of life insurance policy that provides financial protection to your loved ones in case of your untimely demise during the policy term. It pays out a lump sum amount to your nominated beneficiaries upon your death, ensuring that your family is financially secure even in your absence.

Here are some steps to help you choose the best term plan in India:

1. Determine your coverage needs

The first step in choosing the best term plan is to determine your coverage needs. Consider factors such as your age, income, family size, debts, and future financial goals to determine the amount of coverage you need. It is important to choose a sum assured that is sufficient to meet your family’s financial needs in your absence.

2. Compare different plans

Once you have determined your coverage needs, compare different term plans from various insurance providers to find the one that offers the best combination of coverage, premiums, and riders. Use online term plan premium calculators to compare premiums and choose the one that fits your budget.

3. Check the insurer’s financial stability

It is important to choose a term plan from a financially stable insurer to ensure that your policy will be honored in the event of your death. Check the insurer’s ratings and reviews before purchasing a policy.

4. Read the policy terms and conditions carefully

Before purchasing a term plan, carefully review the policy terms and conditions to understand the exclusions, riders, and other features of the policy. Make sure you understand what is covered and what is not covered under the policy.

5. Consider purchasing riders

Riders are additional benefits that can be added to your term plan at an additional cost. Some common riders include an accidental death benefit, critical illness benefit, and waiver of premium. Consider purchasing riders that offer additional protection and coverage for your specific needs.

By following these steps, you can choose a term plan that provides maximum protection to your loved ones at an affordable cost.

Canara HSBC Life Insurance iSelect Smart360 Term Plan is an ideal choice for those looking for a comprehensive term insurance policy. The plan provides various features and benefits to customers, along with the assurance of financial security for their families in case of any untoward incident.

The key features of this term plan include life cover benefits, lump sum with monthly income payout options, online tracking of claims, increasing cover, and limited payment options. It also offers additional riders such as critical illness riders, accidental death riders, and a waiver of premium riders.

Wrapping It Up

A term plan is a crucial aspect of financial planning as it provides financial protection to your loved ones in case of your untimely demise. Choosing the right term plan requires careful consideration of various factors such as your coverage needs, the policy terms and conditions, the insurer’s financial stability, and the availability of riders.

The best term plan in India available in the market is the iSelect Smart360 Term Plan by Canara HSBC Life Insurance. The plan allows you to block your plan premium at policy commencement and increase coverage up to 100 percent of Base SA in the coming five years. It also offers an accidental lump sum payout in case of accidental total and permanent disability, accidental death, or critical illness if availed. Additionally, it provides an option for non-working spouses with a maximum Sum Assured of Rs.50 Lakhs (40 years for Single Premium).

We hope that this blog has helped you understand the importance of a term plan and how to choose the best term plan that meets your specific needs and budget. Remember to always read the policy terms and conditions carefully and consult with a financial advisor if you have any questions or concerns. By taking the time to carefully consider your options and make an informed decision, you can ensure that your loved ones are financially secure even in your absence.

 

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