Financial planning and security, back in the day, were a concept for individuals who earned well. However, in today’s time, these concepts have become a necessity for everyone to consider, whether you’re a salaried employee or anyone who is 65 or less.
Well, if you turn 66 and then also plan to have an insurance plan, you can opt for the one that is upto 99 years of age. While there are several plans, searching for the best term insurance plan will require you to adopt a careful approach.
Let’s go through a quick guide to help you invest smartly.
Do You Know What is Term Insurance?
The best term insurance plan is an investment that offers you and your loved ones financial backing. Maybe you started and built a profitable business from scratch, or you’re the breadwinner of your family. Well, these plans help retain such assets in case of unfortunate events and ensure your family does not fall into a financial spiral.
Finding the Best Term Insurance Plan
Term insurance is of many types, but what distinguishes one from another is its features required as per your needs. After all, it is your investment’s benefit, so it must be chosen accordingly.
| Term Insurance Type | Description | Benefits |
| Standard Term Plan | Provides a fixed death benefit payout to the beneficiary. This is in case the policyholder passes away during the policy term. | Offers affordable coverage and is good for securing dependents’ immediate needs. |
| Increasing Term Insurance | The sum assured increases at predetermined intervals throughout the policy term. | Coverage automatically adjusts for inflation, ensuring beneficiaries receive a relevant payout. |
| Convertible Term Insurance Plan | Allows converting the term plan into a whole life insurance plan during a specific window within the policy term. | Offers the flexibility to switch to a cash value accumulation plan. |
| Whole Life Insurance | Lifetime coverage with a death benefit and a cash value component. | Typically more expensive than term insurance. |
| Decreasing Term Insurance | The sum assured decreases over time, often aligning with the repayment schedule. | Ideal for situations where financial requirement decreases over time (e.g., loan payoff, EMI, etc). |
| Term Insurance with Return of Premium | Pays back the total premiums paid on successful completion of the policy term. | Guarantees a return on investment if no claim is made, but typically comes with higher premiums. |
| Joint Term Insurance | Covers two individuals (usually spouses) under one policy. | Pays a death benefit if either insured person passes away within the policy term. |
Tips to Secure the Best Term Insurance Plan
Knowing the types is just only one aspect of investing smartly in term insurance. There are a few other things that equally help determine a suitable plan. They are:
- Insurance is basically an investment. Opting for one at a young age will lower your total purchase amount, and the guaranteed coverage will be locked in for a longer period.
- Analyse your financial dependents and their future needs. This will help you determine how much would be the appropriate coverage amount.
- Consider it to be your best term insurance plan if the premiums align with your current and future financial position.
- Go for the term insurance that coincides with your dependents’ financial reliance on you.
- Another important aspect of choosing the best term insurance plan is that it comes with a variety of additional benefits. Purchasing it from a reliable insurance company puts you up for flexible additions of rider benefits. For example, critical illness, waiver of premium, etc.
- The last thing to remember is always to check the CSR of your insurance provider. CSR means claim settlement ratio and it is one of the major factors determining any insurance company’s reliability.
Term Insurance, A Pro Investment for the Future
Knowing the ins and outs of the best term insurance plan is crucial when finding the one to invest in. From familiarising yourself with its types to understanding the elements that affect it, you must know everything. In addition, your insurance provider plays an important role in securing your financial future.
If you’re also looking for an insurance company with good CSR, visit Canara HSBC Life Insurance’s official website. Their online term insurance, iSelect Smart360 Term Plan, has a range of benefits along with rider add-ons available.
Log in to their website and go to the “Online Life Insurance Plans” section. This is all you need to do to learn about it and buy from their official website. So, what’s the wait for? Check out Canara HSBC Life Insurance’s user-friendly official website today!
