Lokesh (32) has been promoted as a senior supervisor in his company but he is little concerned about his health which is getting worse due to the night shifts. Seeing him in a dilemma Aditya came for his rescue. Is it really about night shifts or something else?
“Actually I was diagnosed with high blood pressure and I am not comfortable with the night shifts”, Lokesh replied in a weary tone.
“There is nothing to worry about. You can talk to your manager and get the things sorted.”
“One more thing is disturbing me. I am the single earning member of my family and my wife is a house wife. My parents and my daughter are dependent on me. God forbid, if something happens to me then how will they manage?”
“For that you have your company’s insurance.”
Lokesh’s boss who was listening to their conversation interrupted in between.
“Sorry to say Lokesh, but company’s insurance may not be sufficient for your family.”
“Today, all of us rush through the various challenges in life to provide for a better future for our loved ones. Securing life with the best possible ways is a goal which every individual is striving to achieve in the long run. One way to secure your financial future is by purchasing a good term life insurance.”
“What is a term insurance plan?”
“Term insurance is considered a classic risk cover, as it promises to provide your loved ones with financial security in case the policyholder meets with a sudden demise. The premiums for the Term Insurance Plan are much cheaper when compared to whole life insurance.”
“But how can I choose the best term plan?” Lokesh asked
“There are a plethora of options available to select from, short listing the best term plan insurance in India will leave you perplexed. To ease the situation, here are some of the pointers that will help you choose the best term insurance plan in India:
- Value of your Life:
It is important to determine how much money would be required to live a comfortable life in case of loss of a regular inflow of income. In insurance terms, it is known as the Human Life Value (HLV). HLV can be considered as the addition of your total income, loans & liabilities, future financial goals and expected rate of inflation. Make sure not to undervalue the HLV, and choose an adequate Term Insurance Plan. There are many human life value calculators available online.
- Additional/Enhanced Cover
Many insurance companies offer you the flexibility to increase the cover at a later stage in the policy term. For example, you may want to increase the coverage by 5%-10%, considering the addition of a new member of the family (Child Birth, etc). Plans like Edelweiss Tokio Life Zindagi+ provide you with the flexibility to start with low coverage and increase it at a later stage if required.
Term Insurance is the cheapest form of life insurance in India. The competition is so high in this segment that the insurers are offering the policies at a much-discounted rate. Comparing Term Plan Insurance policies online is a smart way to get the best insurance at the lowest price.
- Riders/Add-on Coverage’s
There are several additional benefits on offer from the insurance companies in India, which will help you get coverage from all possible angles. These creative benefits are also known as riders/add-ons. For example, the critical Illness benefit, which, if opted for, will give you the lump sum amount in case you suffer from a life threatening illness in the future. As critical illness may hamper your regular flow of income, this rider will protect you against the odds.
If you want to attach these to your term plan, you will need to shell an additional amount of premium.
- Company Reputation
The essence of any insurance is based on trust. So it is important to choose a company based on some quantitative data, which is available for free on the internet. To help determine the best insurers, you can compare their Solvency Ratio & the Claim Settlement Ratio.
To conclude, term plan is a definite reliever which helps you provide financial security to your family in the future. So, before you choose the best term insurance in India, make sure you have checked the above pointers.
Lokesh and Aditya understood the importance of term insurance plans and decided to buy one without any delay.