I am 30 and looking for a term insurance for a term of 40 years. Which company offers the best term plan in terms of lower premium and best cover? Could you kindly suggest one?
Ans: One cannot recommend a specific term insurance plan or company as it depends on various factors like your health condition, lifestyle habits (smoking/drinking), income, budget, and family situation. However, here’s a guide on how to choose the best term plan.
Here are some key factors to consider when choosing a term insurance plan:
• Sum assured: This is the amount your beneficiary will receive in case of your death during the policy term. Choose a sum assured that is sufficient to cover your outstanding debts, living expenses for your family, and future financial goals of your dependents.
• Policy term: This is the duration for which the life cover is valid. Since you are 30 and looking for a 40-year term, you have a wide range of options to choose from.
• Premium amount: This is the amount you pay annually or monthly to maintain the policy. Generally, younger individuals have lower premiums compared to older individuals.
• Riders: These are additional benefits that can be attached to your base plan, like accidental death benefit, critical illness cover, and waiver of premium rider. Choose riders that suit your specific needs and budget.
• Claim settlement ratio: This ratio indicates the percentage of claims settled by the insurance company. Opt for a company with a high claim settlement ratio.
Popular insurance companies often change, and new products may be introduced, so it's essential to check the latest offerings. Additionally, individual factors such as your health, lifestyle, and occupation can affect premium rates. Make sure to disclose all relevant information accurately to get the most suitable coverage.
Remember, it's crucial to disclose all your health conditions and lifestyle habits accurately while applying for term insurance. Withholding information can lead to claim rejection in the future.
Remember that buying ‘best’ term insurance plan is subjective and depends on your specific needs and circumstances.