14-09-2017 03:00 PM
No one can say that a particular plan is the BEST. The reason being that each individual has different needs and the plan that is best for others may not suit you. I would suggest that you compare various policy features online and then arrive at a decision. However, there are certain key parameters that you should watch out for while evaluating the best term insurance are:
1. Claim settlement ratio: This is a ratio of number of claims paid and the number of claims received by the insurance company. Every insurance company has to declare it's claim settlement ratio and it is available in the public domain and also in IRDA's annual report.
2. Policy Term: Ensure that you buy a policy for a term till when you are expected to be a earning member of the family. Many plans these days also offer a cover upto 75 years of age, so be sure that you covered for a adequate period of time.
3. Sum Insured: Choosing the right policy coverage amount is very critical. Any lesser amount will prove indequate for your family in your absence.
4. Add On Covers: Dont miss out on these value added covers such as Critical Illness, Accidental Death etc. These covers give you a lumpsum amount in the event of a claim. Thus, it is advisable to go for a Critical Illness Cover, if there has been a history of such diseases in your family. These will provide a much needed cushion in times of distress.