Term Insurance Comparison

Table of Content

1. What is a Term Insurance Plan?

2. Why is Term Insurance Important?

3. Term Insurance Plans Comparison: Features, Benefits & Options

4. Compare Term Life Insurance Plans: Understanding Your Options

5. Term Insurance Plans in India by HDFC Life

6. Compare Term Insurance Plans by Age

7. Term Insurance Comparison for Smokers and Non-Smokers

8. Term Insurance Comparison Based on Riders and Add-Ons

9. Term Insurance Comparison by Premium Payment Term

10. How to Buy HDFC Life Term Insurance?

11. Compare Term Insurance Plans to Secure Financial Protection for a Lifetime

12. FAQs on Term Insurance Comparison

What is a Term Insurance Plan?

A term insurance plan is a life insurance product that acts as a financial safety net for your family in case of an unfortunate event while the policy is in force. It provides a maximum cover for a relatively low premium. Buying a life insurance makes your family financially independent, especially if you have incurred debts to fulfil life goals like owning a dream house, children's education, buying a car, etc. Your family receives a lump sum as a death benefit that they can use to clear the outstanding debts and manage other expenses without financial stress.

Why is Term Insurance Important?

Term insurance is important because it is the most affordable life insurance policy option for your family's financial protection. It is recommended to invest in a term plan early in life to ensure the debt burden, if any, is not shifted to your family in your absence. Term insurance is also a great way of having a backup during medical emergencies.

Term insurance comparison is vital to provide complete financial protection to your family. For individuals with more financially dependent members in the family, term insurance plan comparison is more crucial for financial support.

Term Insurance Plans Comparison: Features, Benefits & Options

The insurance industry has grown extensively, and the number of plans has also increased, providing a range of options to suit your requirements. Term insurance comparison is crucial to choosing the right plan that caters to specific needs. Here are some aspects to consider before purchasing a plan.

 An online term insurance calculator facilitates affordable term insurance comparison. It will provides insight into the premium payments for the policy duration and its impact on your monthly budget.  It helps plan your finances accordingly so that you never miss any premium payment and keep the policy in force at all times till maturity.

Claim Settlement Ratio and Payout Ratio of the Insurance Company

The claim settlement ratio is the yardstick to measure the credibility and claim settling track record of an insurance company. A pure  term plan comparison includes reviewing the claim settlement ratio for various insurance providers. An insurance company with a higher claim settlement ratio denotes a higher number of claims settled out of the claims filed during a financial year. Claim settlement ratio comparison is crucial because the higher the ratio, the more seamless and hassle-free the settlement will be.

Compare Term Life Insurance Plans: Understanding Your Options

Term life insurance comparison and understanding the options available in the market are paramount to making the right decision and deriving the maximum coverage for an affordable premium. The options are:

• Basic Term Plans

This is the simplest time insurance plan. The coverage remains constant throughout the policy duration. The plan provides only a death benefit i.e., the beneficiaries receive a lump sum amount on the death of the policyholder during the policy term. If the policyholder survives the policy duration, the plan is terminated without any benefits.

• TROP (Return of Premium) Plans

A term plan with return of premium option is beneficial as the policyholder receives the entire premium paid on maturity if he/she survives the policy term. Compare term plan options before investing in one to understand the advantages of death and maturity benefits in a plan

• Increasing Sum Assured Term Plans

Term insurance features comparison will help you choose the right plan to maximise the financial protection for your family. Unlike the two plans discussed, this plan permits an annual increase in the sum assured while keeping the premium constant. The premiums for these plans are high from the start.

This plan helps enhance the coverage periodically to align with the rising costs and future financial needs. It ensures that the loved ones get a higher payout in case of an unfortunate event.

• Decreasing Sum Assured Term Plans

This plan is beneficial for those who intend coverage for their debts. As the outstanding liability decreases over time, the sum assured also decreases. This results in a decrease in premiums and a cost-effective way of reducing the debt burden on your loved ones. Compare term life insurance plans for an insight into the scope and advantages of coverage and invest in the best plan to suit your needs whether it is life cover or coverage for loans.

Term Insurance Plans in India by HDFC Life

Here are the term insurance plans offered by HDFC Life:

Compare Term Insurance Plans by Age  

Term Insurance Comparison for Smokers and Non-Smokers   

*Subject to underwriting approval  

Term Insurance Comparison Based on Riders and Add-Ons

Term Insurance Comparison by Premium Payment Term 

Term Insurance Comparison Based on Policy Duration

How to Buy HDFC Life Term Insurance?

After you have done the coverage and premium comparison, duration and riders comparison, etc., and done with the best term plan selection, you proceed to buy a term insurance plan. The steps to buy an HDFC life-term insurance plan are:

• Evaluate The Coverage

To begin with, evaluate your current financial status. Consider your existing financial obligations, the number of financially dependent members in the family, and the future needs, keeping in mind the inflation rate. Arrive at the right coverage required to provide financial protection to your family. Term plan comparison is necessary to choose a plan that provides maximum coverage for a premium that fits your pocket.

• Consider Add-ons

Compare insurance riders such as critical illness riders, accidental death benefit riders, return on premium riders, etc., that you may need to add to your basic plan to enhance the coverage. You can customise your plan according to your specific needs by adding these riders.

• Complete The Application Form

After selecting a suitable term plan, you should fill out an online application form. Provide details such as age, lifestyle habits, medical history etc., Upload necessary documents and submit the form. Thereafter, the   team will schedule a medical test to take the process forward.

• Make Payment

On submission of the application form, you are navigated to the payment gateway. You can choose from the payment options available and pay the premium.

With the process complete, the team will review the application and the documents submitted. If they are satisfied with the details provided, the policy is issued, and you will have peace of mind that your loved ones are financially protected.

Compare Term Insurance Plans to Secure Financial Protection for a Lifetime

If the financial safety of your loved ones is a priority, you should consider the life insurance comparison tips for a prudent decision. The comparison tips are important to find a good plan that provides complete financial protection for your family. Rest assured that your family is taken care of financially after your demise gives you peace of mind.

You can further enhance the coverage by adding riders like critical illness riders, waiver of premium riders, accidental death benefit riders, etc., to your base plan. Term insurance comparison helps you choose the right riders to maximise the coverage.

Term insurance plan comparison is imperative to choose the right plan. Providing accurate information about your health condition, lifestyle habits, family medical history, etc., is equally important to avoid complications during claim settlements. Suppressing facts to get the best coverage for an affordable premium may have dire consequences, including rejection of claims filed. Instead, a thorough term plan comparison will help you choose a plan that suits your requirements as well as your budget.

FAQs on Term Insurance Comparison

Q. How do you compare two-term insurance plans?

While comparing two term insurance plans, you should consider several factors. They are:

• The premium for the coverage amount required. Getting maximum coverage for a nominal premium should be your primary concern.
• The add-ons to the base plan enhance the coverage. Comparing the riders to get the best add-ons to suit your specific needs is important.
• The policy duration ensures that both your career and retirement years are covered.
• Inclusions, exclusions, and deductibles impact the claim settlement amount. Look for a plan with fewer exclusions and deductibles and maximum inclusions.
• Compare the claim settlement ratio to ensure a hassle-free and seamless claim settlement.

Q. What is the 3-year rule for term insurance?

The 3-year rule for term insurance is a vital aspect that can impact claim settlement if ignored. According to the rule, you should have maintained the policy for a minimum of 3 years. If the policyholder dies before the completion of 3 years, the beneficiaries may not get the payout or receive a reduced amount unless they fulfil certain conditions. This rule was introduced to prevent exploitation of the plan benefits soon after the purchase.

Q. How do I choose my term insurance amount?

To choose the right term insurance amount, you should evaluate your current financial status, consider your family’s financial needs in the next 20 to 30 years, the number of dependent members, and the add-ons you need for  complete coverage.