Life is unpredictable and many uncertainties can take place. You never know what your future holds and so, you must be financially secured. With growing age, your responsibilities also tend to grow and you must have a backup plan to provide your family with financial protection. A term insurance plan can be a perfect shield against the uncertainties for your family’s financial security.

The life insurance plans are cost-effective and the most basic ones. Unlike the other insurance plans, the premiums that are paid for the term life insurance are minimal. Term insurance offers death benefits to the family of the deceased and the sum is assured.

When it comes to taking the final decision of purchasing the term plan, many things should be taken into consideration. Being a responsible person you should at least look for factors like term insurance calculator, income, health, age, policy period and liability, etc.

Things that you must consider before choosing a term plan:-

Lower tenure: You can choose shorter-term plans if you have taken a personal or home loan. The best way to choose the tenure of the term life insurance is by considering the liquid net worth. The provident fund, stock, and the total investments in the mutual funds will be more than your life insurance cover that can be calculated through the term insurance calculator. The decision should be made based on a self-analysis.

Buying Availability: Buying a term insurance plan is not a difficult task to do if you avail the help of a term insurance calculator. But different companies offer different premiums on the term plan. All you have to do is compare the different term plans of different companies and make a decision regarding the most suitable plan. It is always wise to choose a credible company. You can get a term plan online by visiting the company’s website and going through certain steps.

Also read: Easy Tips For Boosting Your Credit Score As A Low Income Family

The coverage should be based on the needs of the family: It does not matter whether you are a contributing member of a family or a sole breadwinner, you should never choose the amount of cover based on your income. It should be based on the needs of all the family members. The amount of the cover should at least be enough to pay the daily family bills. You are advised to use a term insurance calculator to determine the ideal cover for your term plan.

Higher Claim settlement ratio: The settlement claims can generate profit and additional income by investing in the term plan. The claim settlement ratio represents the total number of claims that are settled against the filed claims. A company should always have an appropriate claim settlement process. If the claim settlement ratio is lower, then the chances of availing the sum assured amount are lesser and if the claim settlement ratio is higher, the chances of assuring the sum will be much better.

Income tax benefits: The term plan does provide an income tax benefit apart from providing financial security. Section 80C of the income tax act is made to save the tax and deduct a maximum of Rs.1.5 lakhs for the listed instruments like ULIP, PPF, ELSS, EPF, and payments like life insurance premium, children’s tuition fees, and repayment of home loan, etc.

Riders can be added: Riders are kind of additional benefits that come against a nominal premium. They provide the financial cover above and over the basic sum assured in a term insurance policy. Some plans offer to add riders like critical illness riders, specific disease riders, accidental death cover, and cardiac cover, etc.


A term plan is the best plan to choose when you are planning to have a financially secured future. It is the most basic plan which comes along with different inherent benefits. Many companies provide term insurance, but before you take one, just have a comparison between them using a term insurance calculator and select the best term plan as per your needs and requirements.

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