The people of India want financial security more now than ever before. Hence, even though life insurance is an important component in most people’s financial planning, they avoid what they consider expensive policies. However, term insurance plans provide an option to secure your family’s financial future while spending not much money at all.

In this blog we will discuss some of the cheapest term insurance plans of India and how making them a part of your smart financial planning is important.

What is Term Insurance?

Term insurance is thus a form of a life insurance contract, which gives the policyholder cover for a particular period or “term”. For the same reason, it pays a very large sum assured against a small premium compared to other life insurance products. At the end of the term if the policyholder dies the nominee gets the sum assured, which is given as a death benefit. However, if the policyholder survives up to the end of the term, no maturity benefits are paid either.

However, term insurance has no saving or investment elements, it offers only risk cover to your dependents, which, however, can be availed at a very low cost.

Why Choose Term Insurance?

Affordable Premiums: Term insurance is the cheapest life assurance product in the market. They are fairly lower compared to other policy types such as endowment or whole life policy.

High Coverage: In Term Insurance, one has the freedom to purchase a large sum and provide adequate financial security for one’s family in the occurrence of premature death.

Simplicity: Unlike pure investment plans, term plans are very simple and do not have many flexible choices to add to the mix, thereby promoting understanding.

Customisable: Most of the insurance companies allow their clients to choose how their premiums should be paid (monthly, quarterly or annually), extra features and policy durations.

What Are The Most Cost-Effective Term Insurance Plans in India

If you’re on the lookout for the most cost-effective term plan in the country, then here are some aspects that you should definitely note: 

1. Premium Comparison- Compare premiums for the same amount of coverage across multiple insurers. If you get the same features and benefits for a lower price, then why not? It works out well for you. So, the lower premium is something you should look out for. 
2. Coverage- Do not be in a rush to lower your premium and compromise on coverage. The principle should be the lowest possible premium for the highest possible coverage. The latter should be determined by you in advance after calculating your family’s future needs and your current assets and liabilities. Check for the term plan that offers this amount at a premium that you can afford. 
3. Other Aspects- Check whether you can flexibly increase the life coverage amount later on with increasing needs. Also look for premium payment flexibility. Check for add-ons to expand your coverage, such as accidental disability and others. Also look at all the terms and conditions carefully, making sure that you avoid hidden charges. 

Ultimately it is about getting the coverage you want for the tenure you want at the premium that is affordable for you. You can do this by opting to compare multiple plans and insurers before finalizing your decision.