How to choose right term insurance plan

Life is always uncertain that’s why it becomes really important to protect yourself and your family financially so that they are secured from any unbearable financial crisis that may hit them once you are gone.

There are varieties of term insurance plans in market. Here are the key factors you need to keep in mind before buying one.  

Analyse your needs

It is really important to assess the amount that you think will provide your family with a secured future in wake of any mishappening and then look out for suitable plans accordingly.

Premium cost

While buying a term insurance plan, select the amount carefully. Compare the cost of various plans available. Do keep in mind your income while deciding on the premium amount.

Insurance riders

A rider is an add-on to your policy. By choosing the riders you can increase the value of your policy. For example, if you include critical illness rider in your basic policy, the insurer is entitled to get a sum assured on being diagnosed with the same.

Claim ratio

Before buying a term insurance plan, do not forget to check their claim ratio. Claim ratio can be assessed by calculating total number of claims registered versus the number of claims settled by the company.

Solvency ratio

The solvency ratio helps in assessing whether the insurance company the insurer is choosing is financially capable of settling the claim in case of an emergency. According to IRDAI guidelines, every life insurance company should have a solvency ratio of 1.5.