How to find a good term insurance plan

Here are 7 questions you're looking answers to:

What is term insurance?

• Term insurance is the least expensive (cheapest) way to purchase a substantial death benefit. 
• You buy the policy by paying a certain amount (called premium) to the insurance company.
• In case of your unfortunate death during a certain period (called term), the company will pay a certain amount (called death benefit) to your nominees. 

NOTE: In case you survive through the term (thank God!), you don't get anything.

Why should I go for Term Insurance?

It is the cheapest life insurance.

It is risk-free and comes with a fixed death benefit.

How much insurance do I need?

10 times your annual income. Not a penny less. Simple as that.

How do I decide which policy to buy?

Based on following factors:

• Death Benefit: The coverage amount should be sufficient. as mentioned earlier, the sum total of death benefits of all your policies must be at least 10 times your annual income.
• Term: The coverage term should be long, very long. At least 30 years. If you don't go for a long term right now, and you buy another policy at a later stage in your life, you'd end up paying an insanely high premium.
• Insurance Company: The insurance company must have a very high claim settlement ratio. A good claim settlement ratio (above 90%) ensures that your company is highly likely to approve the death benefit in case of your death.
• Premium: The premium that you pay must be low and the mode of payment (one time/yearly/monthly) should suit your budget.

Where can I find details about reputation of Insurance Companies?

Right Here : 
http://incometaxindian.blogspot.com/2013/03/claim-settlement-ratio-and-insurance.html

Where can I find details about good term insurance plans? 

The best way is to avoid third party websites and agents. Go to respective websites of the insurance companies. Here are the links to most reputed insurance companies:

• LIC
• http://www.licindia.in/term_assurance_001_benefits.htm
• http://www.licindia.in/amulya_jeevan-I_benefits.htm
• HDFC Life
• http://www.hdfclife.com/Products/ProtectionPlans/ProtectionPlans.aspx
• Birla Sun Life
• http://insurance.birlasunlife.com/Pages/Individual/Our-Solutions/Protection.aspx
• ICICI Prudential
• http://www.iciciprulife.com/public/Life-plans/Life-Insurance-Term-Plans.htm
• ING Life
• http://www.inglife.co.in/productcenter/productcenter-my-term-insurance.shtml

Is there any tax benefit?

Yes. Premium paid towards term insurance plan is exempted under section 80C.