Being concerned about the financial security of our family is one of the most common worries that most of us have. And this is one of the reasons why so many of us opt for a term insurance policy. As a matter of fact, term insurance has been proved to be extremely helpful for many families. In the past one and a half years, many sole breadwinners of families passed away due to COVID-19, and their families did not have to struggle a lot for the finances just because the deceased had a term insurance policy.
Nevertheless, you may end up taking the wrong decision while buying term insurance if you do not consider it carefully. If you think you should only go for the cheapest term insurance plans, then here are some of the factors that you should consider while buying such a term insurance policy.
Almost all insurance companies offer a maximum maturity age which is between 65-80 years. The policies that offer higher maturity age are better.
Higher policy term
Earlier the term insurance policies used to be 25 years. However, now the insurance companies offer 35-53 years of a term to the policyholders. The more the term is, the better it is for the policyholders as they do not need to buy a second term cover that too at a higher age. Therefore, you should look for a term insurance plan with a higher term.
The quotation of premium you get through the charts is just an indicative premium. The actual cost may be way more than that. However, you will get to know the accurate premium rare once your medical tests are done and depending on your health condition. If you are a smoker, you may have to pay 35-30% more premium for a term insurance plan. Therefore, you need to be sure about the premium that you have to pay before you finalize a specific term insurance plan.
Claims rejection ratio
This is perhaps one of the most significant factors that you should consider. You need to check the claims rejection ratio of the company. Even if you pay the lowest premium and after years of such payments, the company rejects 40% of your claims, all your money will get wasted.
The cheapest term insurance plans in India that you can take a look at are:
If you are looking for the cheapest term insurance plans in the country, you will certainly come across many. Here are a few of the mentioned:
LIC Tech Term
The policy term is of 30 years and the minimum sum assured under this policy is INR 50 lakhs. If you are a non-smoker male, you will have to pay a premium of INR 4838 per year.
LIC Jeevan Amar
This is also one of the cheapest term insurance policies that you can consider. The policy term that comes with his term insurance policy is 30 years. The minimum sum assured under this policy is INR 50 lakhs. The yearly premium that you have to pay is INR 3,983, which is quite affordable.
HDFC Click2Protect Life
Just like most of the term insurance policies, the HDFC Click2Protect Life policy also comes with 30 years term. The minimum sum assured is INR 50 lakhs. The annual amount to be paid by the policyholder under this policy is INR 5,625.
Aegon Life iTerm
This is the most affordable term insurance policy so far for which you can pay an annual premium of INR 2,725. However, the minimum sum assured under this plan is INR 25 lakhs. The policy term is 30 years.
PNB MetLife Mera Term Plan Plus
The policy term is 75 years, while the minimum sum assured under this plan is INR 10 lakhs. A non-smoker male policyholder under this policy has to pay an annual premium of INR 3,746.
Bajaj Allianz Smart Protect Goal Term Plan
The policy term is 30 years, and the minimum sum assured is INR 50 lakhs. The annual premium that you have to pay under the policy is INR 5,673.
Each of the policies and the yearly premiums that have to be paid under the above-mentioned policies is for non-smoker males. You can find out more term insurance policies that are affordable at the IIFL website. Visit the website today and find the term insurance policy that suits your needs.