Key Factors to Consider Before Buying a Term Insurance Cover

Safeguard your family's financial future with Fincart’s trusted term insurance plans.

Our expert advisors work closely with you to identify the best term insurance plan tailored to your needs. With the right term health insurance or health insurance term plan, you can ensure your loved ones are protected—no matter what life brings.

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What is Term Insurance?

Think of term insurance as income replacement. You pay a small premium for a large coverage amount. In the unfortunate event of the policyholder’s passing, the nominee receives the sum assured as a death benefit. This money acts as a financial cushion, supporting your family’s daily expenses, loan EMIs, education costs, and more.

Whether you’re considering term health insurance or a pure protection plan, the core objective remains—financial stability for your loved ones when you’re not around.

Why Should You Choose Term Insurance?

A term insurance plan is one of the most affordable and effective tools for risk management. It ensures financial protection without mixing investment goals. Here’s what you get:

  1. Pure protection plan with high sum assured at low premiums
  2. Critical illness rider for enhanced health-related coverage
  3. Income tax benefits under Section 80C and 10(10D)
  4. Accidental death benefit for additional security

If you’re looking for the best term insurance plan, opt for one that matches your life stage and risk coverage needs.

Why Choose Us as Your Term Insurance Advisor?

At Fincart, we blend technology with personal advice to help you select the most suitable term health insurance or life protection plan.

What sets us apart:

  • Smart tools like our term insurance calculator make decision-making easy
  • Regular review and tracking of your term insurance benefits
  • Multiple payout options for the death claim
  • Objective, unbiased recommendations based on your unique profile
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Key Factors to Evaluate Before Buying a Term Insurance Plan

Making the right choice in health insurance term plans or term insurance policies requires looking at more than just the premium. Here’s what to assess:

  • Human Life Value – Calculate the ideal coverage to ensure all future needs (like kids’ education or household costs) are met.
  • Policy Term Duration – Do you want coverage until age 60, 65, or lifelong? The premium and policy term will differ accordingly.
  • Premium Flexibility – Look for options like limited-pay or single-pay that reduce the risk of policy lapse.
  • Add-on Riders – Choose relevant riders (critical illness, accidental death, waiver of premium) for extra safety.
  • Claim Settlement Ratio(s) – Check the insurer’s performance in settling claims over the last 5 years.
  • No. Of days to claim settlement - Find out how long insurers take to process and release claim payouts.

How is Term Insurance Different from Other Life Insurance Policies?

When comparing term insurance vs life insurance, the key difference lies in cost and coverage:

  • Term Insurance: Lower premium, higher coverage. An individual can get ₹1 Crore coverage for around ₹8,000/year.

 

  • Traditional Life Insurance: Higher premium, lower coverage. With ₹1 lakh premium, the coverage may be just ₹10 lakh due to the investment component.

So, if your main goal is protection, not investment, go for a pure term insurance plan—the best way to secure your family’s financial well-being.

FAQ's

Anyone with financial dependents—such as a spouse, children, or aging parents—should strongly consider buying a term insurance policy. It ensures your family continues to meet essential expenses and long-term goals, even in your absence. Ideally, term insurance should be purchased before starting other investments.

Yes, most term insurance claims are honoured. As per IRDAI reports, leading insurers have a claim settlement ratio of 98%, which means 98 out of 100 claims are successfully paid out. However, claims related to suicide are only eligible if the policy has completed one full year.

Claims are typically rejected due to incorrect or non-disclosure of critical information at the time of application. For example, misrepresenting smoking habits or pre-existing medical conditions can lead to claim denial. Always be truthful while filling out your term insurance application.

If you’re financially savvy and well-organized, you can buy term insurance online. However, having a professional advisor ensures your family knows about the policy and receives assistance during the claim process. At Fincart, our advisors offer personalized support—right from purchase to claim settlement.

Term insurance provides high life cover at low premiums, focused solely on protection. In contrast, traditional life insurance plans combine savings and insurance—offering lower coverage for a higher premium. For example, a ₹1 crore term cover may cost only ₹8,000 annually, while other plans offer just ₹10 lakh for the same premium.

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