Here's What You Need to Know Before Comparing Term Plans

Investing in a term insurance plan has become crucial in today's time and age, especially after the Covid-19 pandemic has hit on a global level. In today's time, the uncertainties of life and the rising cost of inflation rates have made it indispensable to have a financial safety net for our loved ones and us. A term life insurance plan ensures that you and your family do not have to face any financial hardships in future and can continue to live your lives without any constraints. Moreover, in case of an untimely demise of the breadwinner, the family might find it difficult to continue with their lives and face financial constraints as well.

Today, there are numerous term insurance plans available for us to choose from. It is important to compare term plans and choose the one that fulfils our and our family's financial requirements in the coming years. In this article, we will have a deeper understanding of the benefits of investing in a term plan and a few things to keep in mind when you compare term plans.

What are the Benefits of Investing in a Term Insurance Plan?

• It provides financial security to you and your loved ones and ensures that you are able to lead a secure and sound life.
• The policyholder can claim upto Rs. 1.5 lakhs of tax deduction benefits in one financial year under Section 80C of the Income Tax Act, 1961.
• Term plan also provides the family with a lump sum amount of death benefits in case of an untimely demise of the policyholder.

Let us now look at a few things to keep in mind when you compare term plans in India

Your and Your Family's Future Financial Requirements

We all have different financial requirements. Before you compare the term plan, make sure that you are well aware of your and your family's future financial requirements. This will ensure that you invest in a term plan that matches your requirements and you do not face any sort of inconvenience in future.

Premiums of the Term Plan

The policyholder has to pay premiums to the insurance company, and in return, he can enjoy the benefits of the policy. When you compare term plans, make sure that you can afford to pay the premiums of the plans you have chosen.

Different Premium Payout Options

The policyholder can choose from numerous premium payout options at his convenience. Premium payout options include –

• Monthly basis
• Quarterly basis
• Half-yearly basis or
• Annual basis

Additional Rider Options

When you compare term plans, make sure that you choose a plan that provides additional rider options. The policyholder can avail numerous benefits and a larger cover in one policy with additional rider options. A few of the additional rider options the policyholder can choose from are given below -

• Critical illness rider benefit
• Waiver of premium rider benefit
• Accidental death rider benefit

Option to Choose Waiver of Premium

We never know when we might face an untimely demise. In this case, the family might face financial constraints, especially while paying the premiums of the term plan. While you compare term plans, ensure that you choose the policy that provides the option of waiver of premium. This will ensure that in case the policyholder is not around to provide a financial safety net, the family will not have to face the burden of paying the premiums.

Your Way Forward

You now know the benefits of investing in a term plan and a few things to keep in mind when you compare term plans. So, if you are planning to invest in a term plan, you should do it as soon as possible.

Bharti AXA is a leading insurance providing company that provides the best term plans for you to invest in. Apart from this, we have a claim settlement ratio of 99.09%

For more information on term plans, get in touch with us today.