Life Insurance is a Must to Cover Uncertain Life Attacks

The simple idea behind buying life coverage would be to provide future financial security to family and loved ones in the absence of the insurance holder. To help execute this well the insurance plans are supposed to be structured in a way that they provide sufficient coverage to the dependents and help them maintain the same lifestyle as before. HDFC term life insurance plans provide the financial security to the family of the individuals and protect their future financial interests.

 

Why term plans?

There are several options in life insurance plans but term insurance plans are definitely worth it. A term insurance plans is a no saving or profit giving plan. It is a pure term insurance plan that gives coverage to major life uncertainties like death, disability, terminal illness or any critical illness. The basic nature of any term insurance plan is to provide financial stability at the most difficult time of an individual. Hence, with a simple idea of only providing protection without any savings or return agenda with it makes term insurance plans cheaper and affordable. A term insurance plan gives better coverage at lower premiums.

A term insurance plan has a predefined sum assured amount both by the insurer and the insurance holder which is paid to the nominees of the insurance holder as per the policy terms and conditions.

 

What makes the term insurance plan for an individual?

 

Below are some of the important criteria to keep in mind before choosing your term insurance plan:

 

·         Reputation of the insurance provider:

The reputation of the insurance provider is an important factor to keep in mind before buying an insurance product. In a case of buying a life insurance product, it is the insurance holder’s priority to cross check the background of the insurance company. It is really important to examine the previous records of the company like the claim settlement ratio, company’s financial strength, credit ratings of the company, year on year premium collections etc.

 

·         Solvency ratio 

The financial stability of the insurance company is the most important factor which is determined by its solvency ratio. It gives fair explanation whether the company can settle its previous pending claims and still manage to grow its business. All this relevant information is easily available on the company’s website.

 

·         Claim Settlement Ratio

Another important factor to keep in mind is the claim settlement ratio of the company. A claim settlement ratio of the company is the calculation of the number of claims that can be settled by the insurance company per 100 claims received. It is always advisable to choose the companies with higher claims settlement record. This company information is available on the company’ website and also posted by the IRDA.

 

·         Expenses

The cost of anything we buy is the most important factor that we keep in mind before choosing it to buy. So are they important in the case of term insurance also. Although term insurance plans are the ones with lower premiums and incur lower expenses, there are a couple of plans which aren’t priced reasonably. Many insurance companies provide premium with discounted rates which are specially structured for the smokers of an individual with any illness medically proved.

 

·         Rider Benefits:

A term insurance plan proves to be the best one with a rider benefit. An additional rider top up to any term insurance plan gives extra benefits of coverage other than natural death reasons like even a disability, terminal illness; critical illness. The best term coverage plan should be able to provide complete coverage with all critical factors involved. A policy holder can add a rider benefit to its term insurance plan. This top up would be additional to his insurance coverage to attain the best of a term insurance plan. These riders are uniquely structured by life insurance service providers to provide best benefits.

 

·         Better Coverage:

Certain term insurance plans have enhanced coverage option that provides the flexibility to increase their cover plan with extra life cover. This extra coverage is to provide insurance to the policyholders during the critical stages of their life. Like an insurance holder can have extra coverage with his basic plan structure to fulfill life stage needs. This lets the holders begin with a basic insurance plan and further add extra cover to it with the increase in their earning power and the ability to pay more premium amount.

 

 

Hence, it’s never too late to begin. Choose your life insurance plan keeping in mind all the factors you have and the requirements of your lifecycle.