Contact Us
For NRI Customers
(To Buy a Policy)
(If you're our existing customer)
For Online Policy Purchase
(New and Ongoing Applications)
Branch Locator
For Existing Customers
(Issued Policy)
Fund Performance Check
Login
Customers
Employees
Partner
Factors to Consider while buying Term Insurance
The journey of life is full of surprises. Although we always hope for the best, we must prepare for the unexpected. Term insurance can help weather unforeseen financial storms and provide your loved ones with a much-needed security net. ...Read More
1 Crore Term Insurance@ Rs.19/day***
To delay is to regret
You may not always be around to take care of your family. And that’s when a term plan ensures your family is well protected.
-
Return of Premium (ROP) Option^
-
17% Online Discount**
-
Same Day Claim Processing#
-
100% Claims guaranteed15
:1800-266-9777
Key Factors to Consider When Buying a Term Plan
Table of Content
Choosing the ideal term insurance plan necessitates a careful consideration of several factors. Let's look at the major elements to consider when purchasing a term insurance plan, so you can make an right decisions that meets your needs.
Understanding Term Insurance
Before we go into what factors to consider when buying online term insurance, let's first have a better understanding of this important financial product. A term plan is a type of life insurance that covers you for a certain length of time. The beneficiaries get a lump-sum payout if the policyholder dies while the insurance is active.
Unlike other types of life insurance that may have investment components, term policies focus solely on providing financial protection to your family in the unfortunate event of your passing. It’s a straightforward, cost-effective way to ensure your loved one’s financial stability, making it a crucial consideration in your overall financial planning.
Key Factors to Consider When Buying a Term Plan
Evaluating the following factors can help you identify the ideal term policy for your family’s needs.
Coverage Amount
Evaluate your Human Life Value (HLV) to understand how much your family will lose financially should anything happen to you. Your HLV helps you calculate the life insurance coverage required. Your sum assured should help your family meet their future financial needs and pay off some outstanding debt.
Policy Term
The policy term depends on your life stage and financial goals. Ideally, your term plan should remain in place until you decide to retire. Younger individuals can opt for plans with tenure of around 35 or 40 years. Conversely, professionals in their 40s can select plans with a 20-year term.
Premium Amount
Your premium amounts should be affordable and sustainable over the policy term. Premiums depend on various factors, including age, health, lifestyle, and coverage amount. You must balance adequate coverage with an affordable premium.
Riders and Add-Ons
Many insurance providers offer riders1 or add-on options to enhance your term insurance coverage. Riders can include critical illness coverage, accidental death benefits, and waiver of premium in case of disability. Assess your needs and consider adding riders that provide comprehensive coverage tailored to your circumstances.
Claim Settlement Ratio
The claim settlement ratio reflects the percentage of claims an insurance company has paid over a specific period. A higher ratio indicates a better track record of fulfilling claims.
Term insurance gives financial stability to your loved ones. When selecting the best plan for your family, keep in mind the coverage quantity, policy term, claim settlement ratio, and availability of riders. Consider the term plan as an investment in your family's future.
Term insurance is a testament to your commitment to your loved ones. It is a promise that resonates even beyond your lifetime. So, embark on this decision-making process with confidence. Remember, you’re building a safety net that will stand the test of time, ensuring your family’s well-being regardless of life’s uncertainties.
Related Articles:
- How to Choose the Right Term Policy Period?
- Basics of Term Insurance - Key Points and Benefits
- Tips to Choose the Best Term Insurance Plan
- 8 Questions to Ask Before Buying Term Insurance
- Growing Together, Saving Together: Financial Tips for Married Couples
- What is ₹ 1 Crore Term Insurance?
Francis Rodrigues
Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.
Written By:
Here's all you should know about life insurance.
We help you to make informed insurance decisions for a lifetime.
HDFC Life
Reviewed by Life Insurance Experts
HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.
Popular Searches
- Term Insurance Calculator
- Investment Plans
- Investment Calculator
- Investment for Beginners
- Best Short Term Investments
- Best Long Term Investments
- 5 year Investment Plan
- savings plan
- ulip plan
- retirement plans
- health plans
- child insurance plans
- group insurance plans
- income tax calculator
- bmi calculator
- compound interest calculator
- income tax slab
- Income Tax Return
- what is term insurance
- Ulip vs SIP
- tax planning for salaried employees
- HRA Calculator
- Annuity From NPS
- Retirement Calculator
- Pension Calculator
- nps vs ppf
- short term investment plans
- safest investment options
- one time investment plans
- types of investments
- best investment options
- best investment options in India
- Term Insurance for Housewife
- Money Back Policy
- 1 Crore Term Insurance
- life Insurance policy
- NPS Calculator
- Savings Calculator
- life Insurance
- Gratuity Calculator
- Zero Cost Term Insurance
- critical illness insurance
- itc claim
- deductions under 80C
- section 80d
- Whole Life Insurance
- benefits of term insurance
- types of life insurance
- types of term insurance
- Benefits of Life Insurance
- Endowment Policy
- Term Insurance for NRI
- Term Insurance for Women
- Term Insurance for Self Employed
- Benefits of Health Insurance
- Health Insurance for Senior Citizens
- Health Insurance for NRI
- Best Term Insurance Plan for 1 Crore
- personal accident insurance
- Annuity Calculator
- Life Insurance Calculator
- Term Insurance Comparison
- Digital Life Insurance
- buy term insurance
1. For all details on Riders, kindly refer to the Rider Brochures available on our website.
*Online Premium for Life Option, Male Life Assured, Non-Smoker, 20 years of age, Policy term of 25 years, Regular pay, Annual frequency, exclusive of taxes and levies as applicable. (Monthly Premium of Rs1047/30=34.9)
***Online Premium for Life Option for HDFC Life Click 2 Protect Supreme(UIN:101N183V01), Male Life Assured, Non-Smoker, salaried, 20 years of age, Policy term of 25 years, Regular pay, Monthly frequency, inclusive of 15% online discount (applicable only for 1st year premium) & exclusive of taxes and levies as applicable. (Monthly Premium of 573/30=19).
**7% online discount available on 1st year premium only
^ Available under Life & Life Plus plan options
#Provided we have received all the relevant and required documents and no further investigation is required. Claim settlement process would be completed within stipulated timelines once the claim request is approved
@As per integrated annual report FY23-24, available on www.hdfclife.com. As of May 2024
15. HDFC Life Click 2 Protect Ultimate(UIN: 101N179V01) A Non-Linked, Non-Participating, Individual, Pure Risk Premium/Savings Life Insurance Plan. The policy must be in force on the date of death, with all premiums fully paid, except for the exclusion clauses mentioned in Part F of the policy document.
ARN - ED/09/23/4749
