Life

A Step-by-Step Guide to Choose the Best Term Insurance

Life is a beautiful journey, full of milestones. Starting from fulfilling your career goals – to forming a family. It goes without saying that at such pinnacles of success, everyone wants to secure their victory and the well-being of their loved ones.

That is where term insurance comes into play. Protect your loved ones and create a means of financial support with this simple tool. Being straightforward and effective will serve as your guiding light, securing your family’s dreams or aspirations even in case of unfortunate events.

Let’s get going with a detailed guide to walk you through the intricacies of finding the best term insurance plan for yourself.

Understanding Your Needs

The first step to identifying the nitty-gritty of selecting the best term insurance is understanding what it is all about. It is an insurance coverage that you pay premiums for. This is a fixed-term plan, which means it may range from 5, 15, 20 or more years. In case of an unfortunate demise, the assured sum will be given to the nominated beneficiaries. Here are some key factors to consider when looking for term insurance:

  1. Life Stage & Dependents: Are you single, married with children, or caring for aging parents? The number of dependents you have specifies the financial support you need to offer.
  2. Financial Goals: Think about the future, like what you aspire to do. Is it a comfortable life for the next generation or your child’s education? Set a financial goal for reaping the benefits of term life insurance accordingly.
  3. Income & Liabilities: Analyse how much you’re earning currently and how much debt you have, if any. Also, consider the potential earnings you think you’ll have shortly.

Choosing the Right Sum Assured

The sum assured, also known as the death benefit, is the invested amount of money the insurance company assures you in return upon claim. The beneficiaries shall get the assured sum in case of an untimely demise of the policyholder during the term. A popular way is to multiply your annual income by 10-15 to get an estimate for the baseline investment figure.

Remember, there are many other factors like inflation that you must consider to calculate the sum assured of the best term insurance plan.

In such cases, leveraging the power of online calculators might turn out to be beneficial.

What to Look for in the Best Term Insurance?

  1. Simple and Transparent: A term insurance policy shouldn’t be hard to understand. Unlike many investment types, term insurance is a simple financial product that may include savings or investment components. A term insurance’s simplicity is dependent on the insurance provider and it is what makes it easier for you to grasp the coverage terms and conditions.
  2. Tax Benefits: One of the significant benefits of term life insurance is that it offers tax relief. According to the Income Tax Act 1961, premium installments can be subtracted from taxable earnings under Section 80C up to a limit. Moreover, the death benefit that the designated recipient will obtain is normally non-taxable under Segment 10(10D), contingent on specific conditions.
  3. Affordability: Term insurance is typically more affordable than other types of life insurance, such as whole life or endowment plans. This makes it accessible to individuals with different budgets.
  4. Flexibility: When you’re finding the best term insurance to invest in, look for flexibility in terms of coverage duration and amount. You must proceed with a term life insurance policy that meets your financial obligations. When you have flexibility, it will allow you to tailor the policy according to your specific requirements.
  5. Rider Add-ons: Numerous term life insurance plans offer rider add-on benefits to possibly improve your existing insurance coverage. For example, critical illness coverage, accidental death benefits, waiver of premiums, and more.

Don’t Wait Anymore, Buy the Best Term Insurance Today!

Finding an ideal term insurance to invest in can be tricky only when you’re unaware of considerations revolving around it. However, with this quick guide highlighting the major considerations, you would also be required to research for a perfect insurance provider.

Worry not because we’ve got you covered on that front as well. Canara HSBC Life Insurance is one of the best term insurance providers in the market, with a great client settlement ratio. You can leverage their online calculators to get an estimate of your returns and savings. Buy term insurance online by visiting Canara HSBC Life Insurance’s official website today!

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