Overview

The press release dated Monday, Aug 24, 2026 at 16:08:58, titled “What Makes a Good Term Insurance Plan? Checklist to Help You Make the Right Choice,” provides a comprehensive checklist for selecting a term insurance policy that aligns with an individual’s present and future financial responsibilities.

Assessing Financial Protection Needs

It emphasizes that the amount of life cover should reflect household expenses, outstanding loans, children’s education costs, income, savings, existing investments, and dependants. The sum assured must be sufficient to meet these needs without being excessively high, which would raise premium costs.

Choosing the Right Sum Assured

The document advises that the sum assured be calibrated against current income, future expenses, liabilities, inflation, and any existing life insurance policies, ensuring adequate financial support for the family.

Selecting an Appropriate Policy Term

A suitable policy term should span the years during which the family relies on the policyholder’s income, often until retirement or until major obligations such as home‑loan repayment or children’s higher education conclude.

Ensuring Premium Affordability

Premiums should comfortably fit within the monthly budget to avoid missed payments that could affect policy benefits. The release suggests balancing low premiums with sufficient coverage and reviewing payment frequency options.

Reviewing Policy Features and Exclusions

Key aspects to examine include:

  • Coverage: events covered and conditions for benefit payout.
  • Exclusions: situations where claims are denied.
  • Disclosure Requirements: providing complete and accurate information on the proposal form.
  • Claim Conditions: required documents and procedures for filing a claim.

Evaluating Optional Riders

Optional riders can be added if they meet genuine financial needs. The highlighted riders are:

  • Critical Illness Rider – additional support for specified illnesses.
  • Accidental Death Benefit Rider – extra cover for death due to accident.
  • Waiver of Premium Rider – premium waiver under specified conditions.

Each rider should be selected only after understanding its benefits, eligibility, exclusions, and extra premium cost.

Comparing Plans Across Insurers

The checklist recommends comparing insurers on coverage, policy features, claim settlement performance, customer service, online services, and flexibility, not merely on premium price. Aviva India is cited as an example of an insurer to compare against others.

Verifying the Policy Document Before Purchase

Before finalising a purchase, the policy document should be reviewed to confirm:

  • Personal information (name, DOB, contact details).
  • Nominee details are complete and accurate.
  • Policy terms, conditions, exclusions, and benefit details.
  • Premium amount, payment frequency, and due dates.
  • Customer Information Sheet (CIS) summarising key features, exclusions, and claims process.

Conclusion

The release concludes that a careful evaluation of financial needs, sum assured, policy term, affordability, features, riders, and documentation leads to an informed term‑insurance choice that protects the family financially throughout changing responsibilities.

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Disclaimer: The above press release comes to you under an arrangement with NRDPL. PTI takes no editorial responsibility for the same.