Financial stress can take over your whole life if not managed at the right time. Whether you are managing debt repayments, struggling to maintain a desired living standard, or just wish to grow your savings to achieve life goals, you may need the help of appropriate financial instruments to do it efficiently. Finding the best term plan in India can be a starting point to ensure your loved ones’ financial stability through turbulent times.
It is safe to say that putting together an emergency fund is the foundation of any sound financial plan. So, doing the work to find the best term plan in India can work in favour in the long run. But, first, let’s begin with what is term insurance in the first place?
Term insurance is a common financial instrument offered by most insurance providers in India, which gives you long-term coverage at affordable rates. You can choose the sum assured, premium rates, benefits and policy period, which can be extended to an entire lifetime with some plans. Since your financial profile is unique, it is crucial to be well informed about the available plans and your needs to find the best term plan in India.
Now that you understand how a term plan works, let’s move on to how you can find the best term plan in India for your family’s financial security? These are some of the steps you can follow to make sure you are on the right track:
1) Understanding Your Financial Needs
Knowing your financial needs is imperative to put your money in the right places. More than that, it works as a springboard to project your future requirements. To put it in perspective, understanding your financial needs is not limited to knowing how the money comes in and goes out, i.e., savings and expenses.
Essentially, these are some of the basic things that most of us think of when making a personal budget:
- Map the pattern of expenses
- Prioritize the expenses
- Save for significant life goals
- Make an emergency fund
Thorough knowledge of your personal finances includes number crunching to assess your present-day financial health and a concrete plan to achieve short-term and long-term goals. Above all, it brings to attention the need to establish a support system for your dependents against unforeseeable circumstances. So, once you know how and when to use your money, the first step is to get the best term plan in India that can work as a safety net through it all.
2) Opting for Adequate Sum Assured
One of the most important steps to find the best term plan in India is to opt for a sum assured amount that takes care of your family’s needs in the future. This includes regular expenses as well as major milestones in life, such as a child’s higher education, marriage, etc. If you have multiple dependents in the family and you are the sole wage-earning member, it is even more crucial to look for the best term plan in India that can adequately support them in your absence.
In case of your untimely demise, if the sum assured turns out to be insufficient, your loved ones may have to face immense financial stress. Therefore, when looking for the best term life insurance policy, make sure you calculate the sum assured appropriately, keeping the impact of inflation in mind. Notably, the retail price inflation rate in India increased year-on-year to 2.86% in March 2019.
3) Comparing Different Insurers
Another crucial thing to remember when finding the best term plan in India is to compare different insurance providers. There is a multitude of options available in the market today offering a variety of benefits that can be customized to your financial preferences. So, calculating your needs and comparing different insurers gives you a clearer idea of the best term plan in India for your family’s security.
Going just by the insurance price may not be the best way to find the best term life insurance policy. Other important factors such as flexibility, benefits, insurer’s credibility should be considered to make a well-informed decision. This will prevent chances of disappointment in the future when your family requires support.
4) Checking for Additional Benefits
Insurance providers offer riders as add-ons to their policies, which can significantly enhance the policy’s benefits. For instance, you can strengthen the coverage of the best term plan in India by adding a critical illness rider, accidental death & disability rider, waiver of premium rider, etc.
The availability of riders may vary depending on the insurance provider. Choosing credible insurers like Max Life Insurance can work well in this scenario as they offer several riders with their term plans. It can give you comprehensive protection so that you can rest assured that your financial planning is on track.