How to choose a term insurance plan that is right for you?

Summary: Term Insurance plan is important as it helps against unexpected health expenese. Choose your term insurance plan carefully. For more information click here

25 Aug 2022 by Team FinFIRST

How to Choose a Term Insurance Plan that is Right for You?

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A term life insurance plan is a simple yet amongst the most pertinent protection plans every family needs. It has become effortless to buy term insurance through online channels. However, evaluating factors beyond insurance cover and premium cost is important. By considering some key features, let’s understand how to choose the best term insurance plan in India.

Flexible insurance coverage

Every family has different financial needs, and your term life cover should be able to offer customisable options. Before you buy term insurance, be sure to evaluate your expenses, lifestyle needs and existing debt. Use a term plan calculator online to gauge the appropriate insurance cover and get an estimate of what the premium amount may be.

Availability of add-on riders

Additional riders allow you to get comprehensive coverage while mitigating the financial risks of other unexpected events. The critical illness rider, for example, offers a large upfront payout in case you are diagnosed with life-threatening issues such as cancer, kidney failure, bypass surgery, etc., to help with the treatment cost. Similarly, the accidental death benefit rider gives out an additional payout over and above the sum assured, compensating for the financial loss of an earning member.

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Life-stage coverage

It is advisable to get term life insurance at an early age to cover risk as well lock-in the insurance at affordable premiums. However, over time your needs and priorities will change. Events such as marriage, the birth of children, and building credit-based assets such as a house or your business, are some instances when you will have to revisit your coverage. Before purchasing term insurance, check if the plan allows you to enhance coverage as your responsibilities increase. This would be significantly cheaper than buying a new term insurance plan.

Tailored pay-out options

Unless there are liabilities to be settled, your family may not require a lump sum claim payout. Buying insurance that gives you the flexibility to structure payments monthly or in tranches for life-stage goals minimises the risk of fund mismanagement and ensures your loved ones get timely financial assistance.

In closing

IDFC FIRST Bank enables you to choose from different term insurance plans from leading life insurance companies in India. Get high customisable covers at affordable premiums, and strengthen your coverage with critical illness covers and accidental death benefits.

Prepare for life’s uncertainties with IDFC FIRST Bank’s term insurance.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.