In today’s fast-paced world, medical bills are skyrocketing. For most families, a sudden hospitalisation or serious illness can result in a huge financial burden. This makes it integral that you think ahead and secure your family’s future with a term insurance plan at the earliest. Such a plan comes with the much-needed life cover, and also provides your loved ones with financial protection at a much affordable rate. Moreover, as the benefits of term insurance become more and more recognised, the demand for reliable providers continues to rise across the country.
Rising medical expenses in India
Over the last couple of decades, healthcare costs in India have increased by almost 12% annually. Several reports suggest that even a single hospitalisation can cost anywhere between Rs. 50000 to Rs. 5 lakh, as per the severity of the condition and the region. Not all families can afford such large immediate expenses. Besides, with a higher incidence of lifestyle diseases, Indians are more exposed to high out-of-pocket spending on healthcare than ever before.
What is a term insurance plan in India
A term insurance plan is one of the most basic forms of life insurance that is available in the market today. These plans usually come with financial coverage for your nominee in case of your demise during the tenure of the policy. This makes sure of your family’s well-being even if you are not around to provide for them. Many companies, such as Bajaj Life Insurance, provide various flexible options to choose the policy term, sum assured and add-on riders tailor-made for Indian customers.
Some of the most common features of a term life insurance plan include:
– Pure life cover with no maturity benefits
– Highly affordable premiums
– Flexible policy tenures (from 5 to 40 years)
– Choice of lump sum or monthly payments to the nominee
– Additional riders for critical illness, disability and accidental death
Key benefits of term insurance for Indian families
Term insurance acts as a financial umbrella during emergencies. Here are a few of the main benefits of term insurance that help you mitigate health-related risks:
Complete financial protection
If you are the sole breadwinner, your sudden loss can put your family in distress. With a proper term insurance plan, your family receives the full sum assured. This is a tax-exempt payout which ensures that your family can meet daily expenses, settle debts or pay for any pending medical treatment without financial strain.
Affordable coverage
Unlike other types of life insurance, term plans come with high coverage at low premiums. For example, a healthy 30-year-old can get coverage of Rs. 1 crore for as little as Rs. 8000 per year with reputable insurers.
Option of critical illness riders
With higher medical costs each year, a basic hospitalisation can drain your savings. Most trusted insurers provide critical illness riders with their term insurance plans. If diagnosed with diseases such as cancer or a heart attack, you receive a lump sum that helps manage treatment expenses and recovery costs.
Debt clearance
Loans such as home, car or education loans need repayment even after your demise. The payout from your term insurance plan can clear these debts and keep your family secure from creditors. This is one of the most sought-after benefits of term insurance that goes beyond just medical expenses.
Tax benefits
Premiums paid towards term insurance are eligible for tax deductions under Section 80C of the Income Tax Act. Similarly, the amount received by the nominee is tax-free under Section 10(10D) and provides additional savings.
Factors to consider when buying a term insurance plan
Consider the following few factors before you decide to get yourself a term insurance plan:
Claim settlement ratio
Always select companies with a high claim settlement ratio. As of FY 2022-23, Bajaj Life Insurance boasts a 99.02% claim settlement ratio which demonstrates prompt service and trust.
Customisable cover and riders
Look for plans that offer the flexibility to enhance your cover. Most life insurance providers allows you to add riders for accidental death, disability, and critical illness, increasing the protection level as per changing needs.
Adequate sum assured
A rule of thumb is to take cover worth at least 10 to 15 times your annual income. This amount should factor in outstanding loans, children’s education, and inflation in medical costs.
Policy tenure
Ideally, select a tenure that covers your family until your major financial responsibilities are met. Plans with return of premium option can also refund all paid premiums on survival.
Trusted claim process
Ensure the insurer has a smooth, supportive, and fast claim settlement process to avoid hassle for your family during distress.
Easy steps to buy a term insurance plan in India
Buying a policy online is seamless. Here is a brief overview of the process:
- Compare and opt for the right plan and sum assured as per on your preferences.
- Fill out the application form with accurate health and financial details.
- Upload all the required documents (ID proof, address proof, income proof).
- Undertake a quick medical check-up as per the policy requirements.
- Pay your premium online or through agent channels.
- Receive soft and hard copy of the policy document, then inform your nominee about the policy and claim process.
Make sure that all the details provided by you are true and complete to avoid any claim rejections in the future.
Conclusion
In a time when health care costs are on the rise, if you depend only on savings jeopardises the future of your family. A term insurance policy serves as a solid safety net and provides all-encompassing defence against medical crises and beyond. For thousands of families, reputable insurance companies have made access to term life insurance easier, customised their products to meet Indian needs, and guaranteed a timely claims process. Be proactive and protect your loved ones by getting a suitable term insurance plan from trusted providers. In light of growing medical expenses, this one choice could mean the difference between your family’s stability and financial hardship.
