{"id":228115,"date":"2025-05-09T14:22:24","date_gmt":"2025-05-09T14:22:24","guid":{"rendered":"https:\/\/ipsnews.net\/business\/?p=228115"},"modified":"2025-05-09T14:22:24","modified_gmt":"2025-05-09T14:22:24","slug":"things-to-check-before-buying-a-term-insurance-policy","status":"publish","type":"post","link":"https:\/\/ipsnews.net\/business\/2025\/05\/09\/things-to-check-before-buying-a-term-insurance-policy\/","title":{"rendered":"Things to Check Before Buying a Term Insurance Policy"},"content":{"rendered":"

\"\"Buying a term insurance policy is the most responsible step in protecting your loved ones financially. It provides a high life cover at an affordable premium, making it one of India’s most popular forms of life insurance.<\/p>\n

However, with so many policies and providers available today, how does one determine which policy is the best choice for them?<\/p>\n

In this guide, we will discuss the things you should consider before buying term insurance online and explain why you might want to pair your term insurance plan with a guaranteed return investment plan.<\/p>\n

Key Factors to Consider Before Purchasing Term Insurance<\/b><\/h2>\n

A term insurance policy may seem simple\u2014pay premiums and your family gets a lump sum if something happens to you. Nevertheless, not all policies provide the same benefits and not all individuals need the same thing.<\/p>\n

These are the essential aspects to consider:<\/p>\n

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  1. Adequate Cover Amount (Sum Assured)<\/b><\/li>\n<\/ol>\n

    Your sum assured should be sufficient to cover your family\u2019s long-term needs. These usually include living expenses, children’s education, outstanding loans, and future goals. A good rule of thumb is to opt for a cover of at least 10-15 times your annual income.<\/p>\n

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    1. Policy Duration<\/b><\/li>\n<\/ol>\n

      Term insurance can be taken for durations ranging from 10 years to even 40 years or up to a specific age, like 65 or 75. Choose a term that covers your working life and ensures your dependents are financially protected during the vulnerable years.<\/p>\n

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      1. Premium Affordability<\/b><\/li>\n<\/ol>\n

        Look for a plan that offers the best value, not necessarily the lowest price. The premium should be affordable for the long run, especially if you opt for a long-duration plan.<\/p>\n

        When comparing term insurance online, check if the premiums remain constant throughout or increase over time.<\/p>\n

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        1. Claim Settlement Ratio<\/b><\/li>\n<\/ol>\n

          This is one of the most important parameters. The claim settlement ratio reflects the insurer\u2019s reliability. A ratio above 95% is generally considered safe. Always check the latest IRDAI (Insurance Regulatory and Development Authority of India) reports for verified figures.<\/p>\n

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          1. Riders and Add-ons<\/b><\/li>\n<\/ol>\n

            Customise your policy using riders like:<\/p>\n