- It is necessary to look at the policy's features and think if it solves your purpose and chooses the right insurance policy.
- Research about the company by reading through the reviews on the internet and seeing if they are positive or negative, based on the customers' feedback.
Ask for suggestions on the cheapest insurance plan to any financial advisor, and immediately they will advise you to go for an online term insurance plan. It is true. A term insurance policy is the cheapest and affordable among all the available insurance products.
It promises to pay the sum assured to the nominee, if the insured encounters any untoward incident like death, accident or terminal illness, during the term of the policy. These plans are also called a pure protection plan because there is usually no maturity benefit at the end of plan tenure.
With multiple insurance providers in the market and each offering their version of online term insurance plan, it might get confusing to choose the right one for you. To understand more about the policies, you can visit the insurance provider’s website and look for term insurance comparisons and premium quotes. This methodology will give you an idea of how different plans fare well against each other.
Why opt for the most affordable term plan? Ravi had recently purchased an online term insurance plan from an insurance company X for a sum assured of Rs.1 crore. His friend, Karan also had bought a term plan for the same sum assured from the same company, but through an insurance agent. While the plan, Ravi chose, offered multiple benefits and premium was cheap, Karan’s policy charged him 30 to 40 percent of premium more. It did not contain many options compared to the former. Suppose Karan had researched a little on his own and compared the benefits of buying online and offline. In that case, he could have got a very good deal on an online term insurance policy, rather than settling for an average product.
How to choose the best online term plans? It is necessary to look at the policy’s features and think if it solves your purpose and chooses the right insurance policy. While you have now understood the necessity of term insurance comparison, let us look at the critical points to note, while buying the best affordable online term insurance plan.
Company and its history: Make sure to buy the online term insurance plan from a well-established and reputed insurance company and not from a run-of-the-mill provider. This is a crucial point to note and something you need to ask yourself while starting the term insurance comparisons. Just like how spending time with wrong people is not useful; buying an insurance policy from a company bundled in litigations or disputes is also going to make your investments go waste.
Research about the company by reading through the reviews on the internet and seeing if they are positive or negative, based on the customers’ feedback. Do pay close attention to their responsive nature, customer support, ease in getting your queries solved, service experience, etc. These are the significant reasons an insurance provider is rated by customers.
Choice of sum assured: The primary purpose of opting an online term insurance plan after due comparison is for the lump sum amount that is receivable by the nominees if the insured person dies within the policy term. This amount is expected to take care of the family’s financial requirements, after the policyholder’s death. Therefore, the plan you choose must have an option to opt for higher sum assured too.
Rs 1 crore coverage is being offered by many insurance providers nowadays. If you have several liabilities, then opting for Rs 1 crore cover, might not be sufficient. In such cases, you need to find a term plan that offers a high sum assured or check if the current plan can be extended to accommodate a higher sum assured.
Addons and riders: An online term insurance plan is generally taken for a longer tenure, such as 20 years or 30 years, to provide financial security for the insured and their family in the long term. Suppose you need to extend the cover of term plan after few years, based on your requirement at that point of time. In that case, there are riders for critical illness, accidental death, and permanent disability due to an accident, which can be added to your term plan for added protection. By making a comparison of features, among the available plans, you can easily find out if a term insurance plan provides an option to add riders or not.
Claim Settlement ratio: A claim settlement ratio can be explained as the number of claims settled by the insurance provider against the total number of claims made by its policyholders. The claim settlement ratio is often overlooked when it comes to buying an online term insurance plan. Either people are not aware of such a term or the company does not project it in its advertisements while promoting a term insurance policy.
A high CSR percentile means that a large number of claims have been settled by the company, which, in turn, adds credibility and reliability to the company. On the contrary, a low CSR implies that the insurance provider is not prompt in settling its policyholders’ claims and holds a bad track record. A decent CSR percentage can be termed as 90 percent.
Buying an online term insurance policy must be given a considerable amount of time as it is a lifetime decision. Understanding your requirements and researching the options available are keys to choose the right plan.
Bimakaro.in helps you achieve this goal by offering you a simple platform to quickly compare the various plans online, right from the comfort of your home. You may choose the desired plan based on essential parameters, compare them with each other and get expert advice from a team of insurance advisors. Buying an online term insurance plan could be time-consuming, but it is worth at the end, for the benefits for yourself and your family is enormous, not for a year or two, instead of for your entire life and even after that as well.