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How to Choose the Best Term Insurance Plan?

Jul 04, 2020 | 1 month ago | Read Time: 3 minutes | By iKnowledge Team

Family is everything, and their protection is your top priority. A tangible form of assurance that can provide a guarantee of the security of your loved ones in your absence is a term insurance plan. A term plan is a pure policy that aims to financially protect the family in case of the untimely demise of the insured in the specified plan period. It has economical premiums and comprehensive coverage. However, given the numerous policies available in the market, choosing the best term plan can be a slightly daunting task.

Factors that can Help Choose the Best Term Insurance Plan

  1. Adequate cover amount: To get the best term plan,you must understand your needs and how much amount would be required to cover those needs. The amount should be sufficient to sustain the current standard of living of the family. The number of dependents, existing liabilities, income, etc. should also be considered. Moreover, the figure should be indexed to inflation.
  2. An ideal type of plan: To select the best term insurance policy, you should also be aware of the different types of term plans. Typically, there are four types of term policies:
  3. Level plan: A regular policy with fixed premiums for the complete policy term.
  4. Decreasing plan: A flexible policy where the sum assured is reduced by a pre-decided percentage each year, parallel to the diminishing liabilities with age.
  5. Increasing plan: In this type, the sum assured rises by a pre-decided percentage each year to incorporate inflation in the long run.
  6. Monthly income plan: This policy offers monthly payouts of the sum assured to help sustain recurring expenses every month
  7. High claim settlement ratio (CSR): Another critical consideration while selecting the best term insurance plan is the Claim Settlement Ratio. It is the percentage of claims paid out by the insurer against the overall claims made in a year. The best term insurance will have a high CSR. This will increase the reliability of the insurer and assure you of the security of the family, in your absence. Aegon Life’s claim settlement ratio is 98.01%
  8. High solvency ratio: To find the best term life insurance, check the solvency ratio. As per the Insurance Regulatory and Development Authority (IRDA) of India, all insurance companies need to maintain a solvency ratio of 150%. This ratio directly reflects the financial strength of the insurer and its ability to pay the claims. 
  9. Various add-ons and riders: The aim of the best life insurance is not only to provide a death benefit. The best term life insurance also secures the insured in case of accidents, critical illness, disablement, etc. Hence, while selecting the best life insurance plan check the add-ons and riders offered by the insurer. Some providers also offer options such as waiver of premium in case of permanent disability, terminal illness benefits, etc. 
  10. Exemplary customer service: Often taken for granted, the way the insurer treats its customers is a very important factor while selecting the best term plan. The process of buying the insurance, making modifications, making a claim, etc. should all be hassle-free and uncomplicated. Moreover, active assistance should be available for guidance. You must check online reviews and connect with the executives personally to choose the best term insurance. 

Reasons to Buy Aegon Life’s Term Insurance Plan

Standing true on all critical factors, Aegon Life’s Term insurance plan offers you the best features. It offers cost-effective and comprehensive coverage, along with COVID-19 protection.

Here are some best features of Aegon Life’s Term Plan:

  • Comprehensive coverage: The term plan offers exhaustive coverage until the age of 100.It also includes lump sum payment on diagnosis of 36 critical illnesses up to the age of 80, including heart disease, cancer, etc. The policy also covers COVID-19 insurance claims.
  • Flexible: The plan is flexible and offers three options to suit each type of protection need:
  • Life protect – Includes life cover along with 100% payout on terminal illness. The cover increases in value at important life stages.
  • Protect plus – Offers 100% payout on terminal illness, and the life cover value increases 5% each year without affecting the premium.
  • Dual protect – Includes life cover with 100% payout on terminal illness. It also provides regular monthly payouts beginning from 60 years till maturity.
  • Hassle-free: The process of application is easy and uncomplicated. You need to choose the plan, fill in the details, submit documents, apply for a medical check, and the policy is activated instantly.
  • Multiple add-ons: The iTerm plan also offers various add-on covers including critical illness, as well as enhanced accidental coverage through Aegon Life AD Rider.
  • Economical: The policy has economical premiums with low rates for women and non-smokers.
  • Tax benefit: The plan premiums and the benefit amount are subject to tax exemption under the law – premium payments are tax-deductible under Section 80C, health rider premiums are deductible under Section 80D, and the death benefit is tax-exempt under Section 10(10D) of the Income Tax Act.

When it comes to family, you must not make compromises and choose only the best term life insurance ideal to your needs. Keeping all points in check and comparing plans from various insurers can help you select the best term plan.


iTerm Plan

Life Insurance Plan with 3 Options to Choose from

  • Life Protect (Life cover till age 100 years)
  • Protect Plus (5% Automatic Increase of life cover)
  • Dual Protect (Protection + Regular Income)
iTerm Plus Plan

Life Insurance Plan with 4 Options to Choose from

  • Life Plan
  • Life Plus Plan
  • Life & Health Plan (10 Critical Illnesses covered)
  • Life & Health Plus Plan (36 Critical Illnesses covered)
iInvest Plan

iInvest Plan with 3 Options to Choose from

  • Increases Your Investment
  • Boost Your Fund Value
  • Withdraw Your Investment
term insurance benefits Benefits of a Term Insurance Plan
Section 10 of the Income Tax Act
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