Term insurance policies serve as life insurance coverage for a specified period, typically ranging from 10 to 30 years. This type of policy offers financial protection to the insured’s family members in the event of his/her untimely death by providing them with a lump sum payout. As term insurance plays a crucial role in offering security during unforeseen circumstances like death or critical illness, it becomes imperative for potential buyers to search for the most suitable term insurance policy available to ensure their financial well-being.

Take a look below at some effective ways to identify the best-term insurance policy:

Key Factors to Keep in Mind When Seeking the Best Term Insurance Policy

These factors tend to impact the effectiveness of a term insurance policy. Hence, you must pay attention to the following when looking for a comprehensive term insurance policy.

  • Coverage Amount: The coverage should be sufficient to meet the financial needs of the insured’s family in case of an unfortunate event. To determine the appropriate coverage amount, factors like the insured’s income, existing loan burden, and financial goals must be taken into account. Having an idea of the same will help plan an insurance approach and allows individuals to opt for an insurance policy that offers adequate coverage.
  • Premium Cost: While term insurance premiums are generally lower compared to other types of insurance, comparing rates from different providers is essential to find the most competitive plan without compromising on coverage. However, one should note that the premium cost depends on several factors that are often related to the policy buyer’s health condition, personal habits, and coverage requirements. Hence, it would be a smarter move to use an insurance premium calculator to determine the amount of money they would have to pay for a life cover from different insurance providers.
  • Add-ons and Riders: Optional add-ons, known as riders, can be added to enhance the term insurance plan coverage significantly. These may include critical illness cover, accidental death cover, and premium waivers. It’s essential to evaluate personal financial standing and choose riders that align with specific needs while considering their impact on the overall premium. This is because adding a rider or multiple of them to an existing plan can influence the cost of premium which in turn affects individuals’ financial capacity.
  • Claim Settlement Ratio: A high claim settlement ratio indicates an insurance provider’s ability to process claims effectively. It shows the number of claims the insurance company settled in a given year from the total number of claims they received in the same year. Choosing a provider with a good track record of settling claims ensures a smooth process for the beneficiaries when the need arises. Usually, a claim settlement ratio over 90 is considered to be favorable for policyholders as the same indicates the likelihood of getting their claim settled in the future. One can easily check the current year’s claim settlement ratio on the official website of the insurance company. Note that the ratio is updated every year.

Besides these, individuals should also weigh in a few factors that could affect their experience of taking out and maintaining a term insurance for women or men. Subsequently, they should use them as a parameter to compare the term insurance policies and their providers. 

Factors to Check Out When Comparing Term Insurance Providers

Keep these factors in mind when looking for a term insurance policy from reputed insurance providers –

  • Coverage Options: Investigate the range of coverage choices offered by the leading insurance companies in India. Opt for a provider that offers a wide variety of insurance plans to choose from. This will ensure that you have ample options to select a policy that precisely matches your personal coverage requirements.
  • Premium Frequency: Choose an insurance company that provides flexible premium payment options. Usually, leading insurance companies allow policy buyers to pay premiums on a monthly, yearly, half-yearly, or quarterly basis. This allows them to choose a payment plan as per their financial capability.
  • Rider Options: Look for insurers offering a diverse selection of riders, enabling policyholders to customize their coverage based on specific needs. This helps avoid the need to get multiple standalone insurance plans and the struggles that come with managing them. However, adding riders to a base insurance plan will also inflate the premium cost but the same will not be higher than the cost of availing another separate insurance plan. 
  • Online Help: Opt for insurance companies that offer prompt online assistance for policy-related queries and services, including rider management, premium waivers, and coverage extensions. This helps individuals gain all the information they could possibly get about a term insurance plan and facilitate informed decision-making. Additionally, such prompt service also helps insured individuals to track and assess their insurance plans better. 

Advantages of a Term Insurance Policy

Here’s how an individual can expect to benefit from a term insurance policy –


  • Affordable Premiums: Cost-effective term insurance premiums make financial security accessible to a wide range of individuals, facilitating better future planning. 
  • Tax Benefits: Term insurance premiums are eligible for tax deductions under Section 80C of the Income Tax Act in India. Furthermore, the lump sum payout to beneficiaries is tax-free under Section 10(10D) of the same Act, providing additional savings and corpus protection.
  • Financial Security: A term insurance policy ensures financial security for the insured’s family, enabling them to cover expenses like loans, living costs, and future financial goals without financial strain. This helps them prepare better for the financial liabilities they would be required to overtake in the absence of the insured. 
  • Customization: Riders enable policyholders to tailor their coverage by adding specific benefits, such as critical illness coverage or premium waiver, based on individual needs. A customized insurance policy allows individuals to be prepared for the worst and ensure financial security in all situations.

By carefully considering these factors and requirements, individuals can search for the best term insurance policy. Needless to say, an informed choice will ensure the financial security of the insured and their loved ones.