What is Term Insurance?
Term insurance is a type of pure life insurance that offers the insured financial security. The beneficiary receives a death benefit as specified by the selected term insurance plan in the event that the insured passes away within the policy period.
For Example : Imagine a married couple with young children and a mortgage. The primary breadwinner, let's call him Mike, is the sole earner for the family. In the unfortunate event that Mike passes away unexpectedly, the family could face significant financial challenges. However, Mike's family may benefit greatly if he obtains a term life insurance policy.
Why should you Buy Term Insurance
Individuals from many backgrounds recognize the significance of life insurance, which prompts them to search for the most suitable term insurance plan according to their needs. Every family requires financial security under a term plan to deal with the financial burden of losing a loved one, especially the breadwinner, in the fast-paced world of today and the mounting uncertainty of COVID-19 disease. It also assists the family in repaying any outstanding bills, including any mortgage or auto loan.
The following justifies the purchase of term insurance:
To Secure Your Family’s Future
To Protect Assets
To Minimize Lifestyle Risks
To Stay Prepared for Uncertainties
Top 5 Term Insurance Company in India 2024
Selecting the right Term Life Insurance involves considering various factors to ensure that the policy aligns with your specific needs and financial goals. One of the major factor is the Claim Setelment Ratio So here are some - Best Term Insurance Company in India Based on Claim Settlement Ratio 2021-22
S.No. | Insurance Company | Claim Settlement Ratio |
1 | ICICI Prudential Life Insurance | 97.82% |
2 | IndiaFirst Life Insurance | 96.92% |
3 | Kotak Mahindra Life Insurance | 98.82% |
4 | LIC | 98.74% |
5 | MAX Life Insurance | 98.74% |
Conclusion :
It's important to note that Term Life Insurance provides coverage for a specific term, and if the policyholder survives the term, there is no payout. However, during the term, it offers a cost-effective way to provide substantial financial protection for loved ones in the event of the insured's death.