General Insurance

Complete Guide To Buy Best Term Insurance In 2022


The start of a new financial year always brings new goals to mind and a fresh approach to every individual’s mind. However, while it is very natural to feel stress-free because the financial year has just started for you, it would be in your best interest to not let valuable months slip out of your hands without financial planning. 

One of the most important decisions in a person’s life may be deciding on the type of insurance and determining how much life insurance is required. It makes all the difference in the world to have the right insurance partner who not only provides you with the best term insurance money can buy but is also a trusted insurer in the market with a legacy that can win over your trust as well. 

Therefore, you must remember to find yourself the best term life insurance in India, with an ideal coverage option, the best payout methods, and a CSR that will guarantee you an easy settlement.

Just as it is important to think thoroughly about the life insurance your family will need, it is just as crucial to compare insurers and do your due diligence to find a term life insurance policy that will be perfect for you and your family. 

Why Opt For Only The Best Term Insurance Plan In India?

Believe it or not, life is always full of uncertainties. And unless you are creating a financial backup, i.e., a safety net for yourself and your family to fall back on, it can get unpredictable and difficult to survive at any point in time.

Thus, you must remember to compare basic parameters while getting term life insurance. Look for which insurer is offering higher coverage for a cheaper premium and who has a better name in the market. However, the search for the best term insurance in India goes much deeper.

The cheapest term insurance plan might not be the best term insurance and may not even be ideal for you. Hence, it is important to compare them and use an insurance calculator to find out which plan is the best fit for you and your family.

Here are some of the parameters that can help you choose the ideal term insurance for your family:

  1. Payout Flexibility

You can choose between the fixed monthly income payout and the increasing monthly income payout. Different insurance companies offer two or even both payout options for life insurance.

In the fixed monthly income term insurance plan, the beneficiaries of the deceased are paid a predetermined amount monthly. This makes clearing off their dues and monthly expenditures easy for them. An increasing monthly income plan, on the other hand, is where insurers allow the monthly income to grow by 10% annually, giving your family inflation-proof financial cover. 

  1. Claim rejection rate

One of the biggest benefits of term insurance is the high claim settlement ratio that most of these policies and insurance companies build over time. So make sure that your family does not have to take too many trips to the insurer to get the claim processed. You should do your part by comparing term life insurance plans properly. The key is to select a trusted insurer with an excellent death settlement ratio and spotless claim history. 

  1. Increasing policy coverage

The best term insurance will not only give you great coverage from the start but also offer flexibility to increase it as you advance in life. Right from getting married and settling down in a home of your own to having kids and starting an education plan for them, certain milestones in life demand higher policy coverage. So, check out which term insurance plan is allowing you to increase your life coverage as you pass through such important milestones. 

  1. Additional Riders

Customising a term insurance policy can be tricky at times. There are a lot of useful riders, like waiver of premium, accidental death benefit, partial or complete disability, critical illness cover, etc. However, it is important to assess your family’s needs and add only those covers to your policy that could benefit your loved ones. The best term life insurance plans in India will offer you these riders at a nominal cost, and their advisors can help you navigate through the choices and easily pick only the ones you will need.

While there are many benefits to this policy and riders to help customise it, do not forget that at its core, a term insurance plan’s purpose is to protect you and your family in unprecedented times. Another important benefit is all the tax savings you can achieve once you buy the best term insurance in India. 

Under Section 80C of the Income Tax Act of 1961, you can claim a deduction on your taxes for your life insurance policy premiums. Use an income tax calculator to ensure that your annual premium amount is less than 10% of your total sum assured to enjoy tax benefits as long as your policy is active. 

Secure Your Loved Ones With The Right Term Insurance plan

Choosing the right term insurance can be a tough decision, especially with the number of options that are available today. However, it is recommended that you explore different options and match them to your unique requirements before you choose a term insurance plan.

It is very important to compare insurers in detail to find the best term insurance plan in India. Remember to choose an insurer that will do right by you and your family. So do the right thing for your family and buy yourself the best term insurance today. 

Stay tuned to the Piramal Finance blogs for more such articles. You can also explore different types of loans on Piramal Finance’s website and get expert advice from them on how to make financial decisions!