A good financial adviser will ask questions about your financial situation and your interests, family, and lifestyle. Your interest, family or lifestyle can influence your financial goals and decision-making. Having a good understanding of your motivations may help him understand your willingness to take on risk or the triggers that will make you excited or spark your concern. The goal is to help you create a financial plan that will serve you well in good times or bad, so you always feel confident about reaching your financial goals.

The objective of a term plan is to secure your loved ones.  The purpose is realised only when the claim is paid, and the beneficiaries live their life comfortably as was envisaged when you bought the plan. It is imperative to keep this objective in mind in evaluating a term plan, points like premium amount etc. come secondary. Below is a simple guideline on how to evaluate a plan. A good financial adviser can help you elaborate more.

1. Company – Brand, years in business, reviews – Remember reputation matters
2. Benefits to premium ratio – Look at the number of benefits offered by the plan. A benefit is not a feature, but how a particular feature works for you. Having a plan with ten features and none resonating with your needs is not a good plan for you. If the number of benefits you get is higher even if you pay a slightly higher premium, it is a good plan.
3. Claim ratio- This is the key because this affects your objective and a company’s reputation.
4. Fine print: Go through the fine print carefully, which includes the exclusions.
5. Amount of cover – Estimate the cover you require with the help of a financial adviser and buy the correct amount
6. Onboarding process- A reasonably quick policy issuance process with proper due diligence should be preferred. Please remember to provide correct details, especially the details which affect the application’s underwriting, such as Age, health details, habits, occupation etc. If a company asks for a medical test, go for it as this will shift the onus on the company and help meet your objective.
7. Financial adviser- License, qualifications, years in business, reputation