Purchasing term insurance is one of those do-or-die things that the rest of us continue to put off. We understand it’s necessary, and we understand it will take care of our family if we die—but somehow it remains on the to-do list. If you’re now ready to mark it off, then here’s a straightforward guide to assist you in selecting the best term insurance plan in India.
First, What Exactly Is Term Insurance?
Term insurance is the most fundamental type of life insurance. You pay an annual premium for a fixed period of years. When you die, if within that period, your family gets a huge amount of money from the best-term life insurance companies in India. If you survive the policy, you don’t get anything in return—unless you opt for return of premium in a plan.
It’s not an investment. It’s plain protection.
Why Picking the Right Plan Matters
All term plans may look alike on the surface. But once you take a closer look, the differences begin to appear. The premium may be a little lower in one plan, but that company may have a
slow claims process. Another may have excellent service, but it may cost you more. That’s why you need to balance price, service, and reliability.
This isn’t a monthly recharge pack. It’s a long-term commitment. And when your family is in need, the right plan can make all the difference.
Step-by-Step: How to Choose the Best Term Insurance Plan in India
1. Check the Claim Settlement Ratio
The claim settlement ratio informs you about the number of claims that were approved by the insurer from total claims received. A good insurer ought to have a ratio of more than 95%. This indicates that they’re reliable and not going to reject claims for a small reason.
This is often released annually by the IRDAI (Insurance Regulatory and Development Authority of India), and it’s worth reading before you purchase.
2. Select Reputed Life Insurance Companies
There are numerous best-term life insurance companies in India, but not all of them have established themselves over the years. These companies typically provide better service, quick response, and communication.
Always opt for known and credible names. It’s worth paying a bit of extra money to be at ease.
3. Determine How Much Cover You Need
This is one area where individuals tend to go wrong. Some select a random sum, while others simply opt for what an agent proposes. Here’s a straightforward tip—your life cover must be around 10 to 15 times your yearly salary. In case you have loans or small children, you can opt for a little more.
For instance, if you are ₹8 lakh per annum, a cover of ₹1 crore would be a good starting point. Ensure that the cover is sufficient to support your family and settle any loans.
When evaluating the Best Term Insurance Plan in India, always factor in how much cover you truly need based on your lifestyle, dependents, and future obligations. The right plan should provide adequate protection, not just an attractive premium.
4. Set the Policy Term
Your term insurance must last until the point when your family is financially independent. For the majority, this is the age of retirement or approximately 60–65 years of age.
Certain policies even permit you to opt for cover till 99 years. It’s optional. If you want to cover just your earning years, a term of 30–35 years should suffice.
5. Compare Premiums Wisely
It’s attractive to just opt for the lowest priced plan. But cost shouldn’t be the sole criterion. You must also compare the insurer’s reputation, claim history, and service quality.
At InsureMile, we recommend comparing 4–5 of the top term life insurance companies’ plans side-by-side. It’ll make you realize which one provides good value without compromising.
6. Check Additional Benefits (Riders)
Certain term plans allow you to add more coverages through riders. They cost more but can prove beneficial under certain circumstances.
Accidental Death Benefit: Additional payment if death occurs due to an accident.
Critical Illness Cover: Pays a lump sum if you’re diagnosed with critical conditions such as cancer or heart problems.
Waiver of Premium: If you’re not working because of illness or disability, your future premiums are waived.
You don’t have to buy all the riders. Choose what’s important for you.
7. Go Digital (If You’re Comfortable)
Almost all the leading insurance providers in India have online policy purchase now. It’s fast and convenient. You simply enter your details, respond to some health-related questions, perhaps upload a couple of documents, and you’re through.
Medical tests are required or not based on your age and cover value. Always be truthful while entering your health information. Anything incorrect can result in claim rejection in future.
Term Insurance and Life Insurance – Any Difference?
Yes, and it’s best to know the term insurance and life insurance difference.
Term Insurance: Pure protection. Pays only in case of death during the policy duration. No money back in case of survival.
Traditional Life Insurance: Protection with savings. Maturity amount in case of survival. But premiums are significantly higher.
If you merely want to safeguard your loved ones, term insurance will do. If you also desire returns later, endowment or ULIP plans are yours for the asking. But keep in mind that they are more expensive.
What Makes a Term Plan Truly “Best”?
The Best Term Insurance Plan in India is not the cheapest. It’s the one that
- Has a high claim settlement ratio
- Has a hassle-free claim process
- Is from a trusted insurer
- Matches your life stage and objectives
- Provides options to enhance cover when necessary
Some top life insurance companies in India top even provide an option to boost the sum insured when you marry or have a child. It’s always nice to look for such flexibility.
A Quick Note on Premium Payment Options
You can pay in:
- Yearly: Most popular and most economical
- Half-Yearly or Quarterly: A little costlier
- Limited Pay: You pay for some years but remain covered for a longer duration
Some individuals prefer to pay premiums only up to 60 but remain covered up to 85. That way, they’re not paying beyond retirement. Such options are based on the insurer.
Final Thoughts from InsureMile
Selecting the appropriate term plan isn’t simply a matter of checking a box. It’s ensuring that your loved ones remain secure even when you are no longer with them. And for that, you don’t require a hundred features or catchy advertisements. You merely need a simple, rock-solid plan from a reputable insurer.
At InsureMile, we assist individuals in comparing the best term insurance plan in India’s leading life insurance providers and selecting the one that best fits them. You can be 25 or 45, single or married – we’ll walk you through it step by step.
So if you’re ready to take the leap, we’re just an easier click away.
