We all take small measures to safeguard our interests in different spheres of life. Thus, it is imperative that we do the same when it comes to life itself. No wonder, a term insurance plan is so popular among policy buyers these days. Unlike most other insurance plans, a term plan focuses on offering you only life cover and nothing else.
If you are on the lookout to buy a term plan there are no second thoughts that you would look for the best term insurance plan. But then, how do you distinguish between the best term insurance plan and a normal term plan? Here are some of the characteristics of a term plan which makes it the best.
- Sum Assured
There virtually is no cap to the upper limit when it comes to the sum assured of a term plan. Some insurers do exercise a minimum sum assured but that’s about it. As long as you meet the requirements set by the insurer, you can opt for a plan that offers INR 50, 00,000 as sum assured or INR 2, 50, 00,000. The choice is all yours.
- Affordable Premiums
If you have dealt with insurance products in the past, you would be aware that for a sum assured to the tune of INR 50, 00,000 or more would warrant hefty premiums. But that is not the case with a term plan. For the amount of coverage that you get, the premiums that you pay are comparatively lower. This also acts as a USP for a term plan, as it offers exceptional life covers at affordable rates.
Qualities of the Best Term Insurance Plans
Apart from the above, the best term insurance plan also has some other characteristics. It is when you combine all of these features and benefits; a term plan comes across an extremely compelling package. Here are some of them.
A term plan brings a lot of flexibility on to the table. To start things off, you have a great deal of flexibility at your disposal to choose the right plan. You can change the duration of the plan, the sum assured, the riders or add-ons on offer and so on. Apart from these, should you ever want to discontinue from a plan, it is easy as well. You just need to stop paying the premiums. Some insurers also offer the ability to convert your term plans into endowment plans. A term plan also lets you increase the sum assured of the plan on certain milestones such as marriage or birth of a child.
- Tax Benefit
We are all used to the fact that insurance plans offer tax benefits. A term plan is no different. The best term insurance plan offers dual tax benefit. Firstly, the premium that you pay up front is tax deductible under Section 80C. Should anything happen to the policy holder, the proceeds of the fund are non-taxable under Section 10(10D) of the Income Tax Act, 1961.
This is one of the best qualities of a term plan. It doesn’t have any complicated rules or regulations or calculations that you need to be aware of. The plan is quite simple. A policy holder pays premiums and in turn receives life cover. Should any unforeseen event take place, the insurer will pay the sum assured to the nominees. If the insured lives through the term of the term insurance policy, there are no maturity benefits.
Some of the Best Term Insurance Plans in India
Keeping the above things in mind, here is a brief list of the best term insurance plan that you can choose from.
- Edelweiss Tokio Life Total Secure+
- Edelweiss’ Life Total Secure+ is a comprehensive term plan and is a cost effective one as well.
- You primarily have three options to choose from. A basic term plan, a term plan with basic health cover and a comprehensive term plan.
- The plan holds good till you reach the age of 75 or 80 years.
- You can opt for riders to enhance the feature list.
- It covers 35 critical illness.
- Aviva i-Life Total Term Plan
- It is a pure online term insurance plan.
- You stand to receive a rebate when you opt for high sum assured.
- The plan has a few variations in the form of return of premium, terminal illness, monthly payout etc.
- Aegon Life iTerm Plan
- It offers life cover up to 80 years.
- The plan has terminal illness built into it.
- A host of riders to choose from.
- Flexible payment options.
All the above plans are very closely matched and easily qualify to be the best term insurance plan. Irrespective of which plan you choose, buying a term life insurance plan is recommended.