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We all want the best for our family, and we work hard for it, pray for their welfare, and try to protect them from all harm to the best of our abilities. But what about their welfare in your absence? Ensuring financial security and protection for your family, even when you aren’t around, is also a means of safeguarding their interests. One of the most affordable ways to ensure your family has a secure financial future is to opt for a term plan. Through, a term plan you have to pay nominal premiums for a fixed term in exchange for a relatively higher sum assured benefit which your family will get in the event of your death during the policy term.

When you opt for insurance, it is natural that you would want to choose the best term plan that will provide your loved ones with the best. To ensure that happens, you need to carefully assess all the critical factors such as age, income, health, liabilities, etc. Some of the important pointers to keep in mind while choosing the best term plan for you are as below:

1. How many family members you need to think about?
   You need to first and foremost keep a note of how many family members are dependent on you. Are your parents also dependent on you? Is your spouse a homemaker or also working? Are your children young?
   You need to also keep in mind the life stage you are at. It is presumed that the more we age, the lesser our responsibilities and expenses become towards others. Eventually, our children start earning and become less or not dependent on us. These aspects need to be carefully considered for your term plan.
    
2. Coverage should depend on your family’s needs
   The life coverage should be ideally dependent on what and how much your family needs to live and sustain their everyday life. Keep in mind the kind of lifestyle your family leads and how much coverage they would require sustaining it. Also, you need to factor inflation into the question when you finalize the coverage. The sum assured should cover up these basic expenses comfortably.
   You could also look into term plans that offer regular income even after your absence. Depending on what you feel would be suitable, you can choose the best term plan for them.
    
3. Future Liabilities
   Have you availed any loan or have any pending EMIs? Your term plan coverage should take these future liabilities into consideration, so there is no unexpected financial burden or insecurity for your family in your absence.
   You can opt for specific term covers that are linked to your loans, and the insurance company directly pays off the debt in the event of your death.
    
4. Look into the Claim Settlement Ratio (CSR)
   The most popular and best term plans are known to have higher CSRs as compared to their competitors. CSR is basically the ratio of the number of claims settled by the term plan provider against the total number of claims filed. A high CSR builds confidence in the minds of the insurance holders that they claim would most likely be settled. Further, you need to also look into the efficiency of the insurer in settling these claims. Lower the time taken to settle claims, the better.
    
5. Opt for Riders
   Over and above the basic life coverage a term plan offers, you can opt for additional riders at nominal costs to the premium amount. These riders include disability cover, waiver of premium cover, critical illness, accident cover, loss of employment cover, and many more. Each of the riders adds considerable value to your already purchased basic term plan.

In simpler words, keep in mind that your life is important since the lives of many depend on it. Be prudent and judicious while choosing the best term plan for you since it not only involves money but also features as a support for your family in your absence. Don’t forget to always make informed decisions and avoid following the herd mentality. There are several term plan providers that also offer you the benefit of customizing your term plan as per your needs and requirements. Browse the website to know more about Life Insurance and the various Term Insurance Plans offered by PNB MetLife.

*Tax benefits are subject to conditions and other provisions of the Indian tax laws and are subject to amendments made thereto from time to time.

Disclaimer: 
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

PNB MetLife India Insurance Company Limited, Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka.
IRDAI Registration Number 117. CI No: U66010KA2001PLC028883. For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding the sale.
The marks “PNB” and “MetLife” are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
Call us Toll-free at 1-800-425-6969. Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203
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