In recent years, the life insurance industry has undergone major changes. Gone are the days where life insurance meant typical endowment covers. With time, varied options have emerged with a broad range of features. Nowadays, online term insurance is gaining popularity. Plans such as money back policy, standard life cover, or pension insurance with consistent income streams.
Buying life insurance is a daunting task for many people. But this is the age of technology where every piece of information is available at a single click. You can now research thoroughly without any time wasted. With this easy guide, you will be able to zero down on the best online term plan.
What is a Term Insurance?
Term insurance is a type of life insurance product that offers complete financial coverage at affordable premiums for a limited period. It offers a lump sum amount as a death benefit to the beneficiary in case of death of the insured during the policy’s tenure. If the policyholder survives the duration of the plan, then no benefit is given to the insured.
Usually, no investment is there in term insurance, so the premiums only involve the component of mortality charges. This makes term insurance economical for the majority of the population. The best online term plan provides your family financial stability in unanticipated circumstances. In premium return term policies, the insured receives the total of all the premium paid to date.
Reasons To Buy A Term Insurance
Taking an online term plan is crucial for financial stability. Here are a few basic reasons why one should consider term insurance.
Your family’s financial needs will be met satisfactorily with the insurance money even when you are not around. It can be used to meet their monthly living expenses and any future goals such as marriage or higher education.
Increasing Lifestyle Diseases
A sedentary and extremely stressful lifestyle is giving rise to various ailments. The insurance industry offers term plans that offer financial safeguard and critical illness coverage for a lifetime. Hence, an individual should weigh out whether a comprehensive term plan is needed or not.
You can take out a loan for assets such as a house or car if you have a term plan. In an unfortunate event, your family might be liable to repay the pending loan amount. A term plan can be utilized to pay off the outstanding debt without burdening your family.
Features of Term Insurance
If an individual is planning to invest in term insurance, then awareness about the following key features is crucial.
Adjustable Sum Assured
The amount payable to the nominee in the event of the insured’s demise is known as sum assured. The best online term plan offers the option to increase or decrease the sum assured as per the policyholder’s financial condition. One can also adjust the premium amounts as per their personal needs or future plans such as higher education or kids’ marriage.
Entry Age and Maturity
A person can start as early as they hit the age of 18 and can buy term insurance till, they turn 65. The age when the policy expires is known as maturity age. Most commonly, the age of 75 years is the maturity age for most policies. There are a few online term plans that even go up to the age of 80.
The tenure for which the insured has life coverage is known as the duration of the term plan. It usually depends on the age of the policyholder. For example, a person with an age of 40 with a maturity age of 75 years will have a tenure of 35 years. The tenure ranges from 10 years to 40 years. Hence, it is wise to start early and buy the maximum duration of the term plan.
Claim Settlement Ratio
The higher the claim settlement ratio, the more credible your insurer is. Insurance Regulatory and Development Authority of India releases the claim settlement ratio every year. A consistently performing ratio is a good indicator of an insurance company’s claim settlement process. Therefore, always check the claim settlement ratio before finalizing your insurer. Look for a quick settlement process and robust backing in terms of numbers for a clear picture.
Critical Illness Benefit
Some best online term plans provide the facility of adding coverage against critical or terminal illnesses. The medical cost of these diseases is exorbitant and can disbalance your family’s financial stability. One can easily safeguard them by choosing a term plan inclusive of critical ailments. Usually, such term plans by insurance companies pay out a lump sum amount immediately on diagnosis of a life-threatening disease.
Riders are added benefits on your term insurance offered by your insurer for making the coverage comprehensive. For example, there are accidental death riders in addition to your term plan. Wherein the beneficiary will receive, say, 40 lakhs as death benefit and an additional, say, 20 lakhs if the death happened due to an unfortunate accident. Hence, it is wise to take on a plan with additional riders in it.
Regular Payout Option
Generally, term insurance plans offer a massive lump sum amount to the beneficiary of the policy in the unexpected event of the death of the insured. Now, insurance companies have come up with term plans that provide the facility of regular payout apart from the lump-sum amount. An individual should opt for a plan with regular payout options for better financial safety.
How To Buy An Online Term Insurance?
Nowadays, an individual can buy the best online term insurance directly through the website of the insurance company. All you have to do is be ready with the necessary documents, which are easily uploaded on minimum internet data. It is essential to compare several insurance products available at your disposal before making the final decision. Always zero down on an insurance policy that is as per your preferences.
If you want to secure your family financially from unexpected events, then you must buy online term insurance. You will be assured about your dependent’s financial stability in your absence. Hence, it is a wise decision to invest in the best online term insurance as per your needs.