Advisory Support for First-Time Term Insurance Buyers

For first-time buyers, navigating the vast range of term insurance plans available in the Indian market can be overwhelming. Seeking expert advisory support ensures that you choose the right plan based on your needs, financial goals, and affordability. At Paybima, we follow a unique "check online, buy term insurance with expert guidance" approach, where our advisors assist you in comparing multiple insurer quotes, understanding policy benefits, and making an informed decision. You can then proceed with the purchase online or visit a Paybima office for in-person assistance. 

Key Considerations When Seeking Advisory Support for Term Insurance 

1. Choosing the Right Coverage, Tenure, and Plan Type: 

The primary goal of term insurance is to secure your family’s financial future. Selecting the appropriate coverage amount and policy tenure is critical. Your advisor will consider the following factors: 

1. Your current income and financial liabilities – Loans, EMIs, and other obligations should be accounted for. 
2. Future financial needs – Your family’s lifestyle, children’s education, and daily expenses. 
3. Age and life stage – Younger individuals generally need higher coverage, ideally 20 times their annual income. In your 40s, coverage of 15 times your yearly income may suffice. 
4. Inflation factor – Future cost increases should be factored into the sum assured. 

Tip: Your Paybima advisor will help assess your needs and recommend a suitable term plan that provides optimal coverage without overburdening you with high premiums. 

2. Understanding Claim Settlement Ratio (CSR): 

The Claim Settlement Ratio (CSR) represents the percentage of claims settled against the total claims received in a year. A higher CSR means better chances of claim approval. For instance, if an insurer has a CSR of 97%, it means 97 out of 100 claims were successfully settled. 
 
Tip: Paybima advisors help you analyse insurers' claim settlement records to ensure that you choose a company with a strong track record. This minimises future hassles for your family when filing a claim. 

3. Simplified Buying Process with Expert Assistance: 

At Paybima, we bridge the gap between online convenience and personalised guidance. Our "check online, buy term insurance with advisory support" model ensures you get the best of both worlds: 

• Step 1: Compare multiple term insurance plans online on Paybima’s platform. 
• Step 2: Speak with an advisor who will guide you through features, riders, and exclusions. 
• Step 3: Receive tailored recommendations based on your financial goals and risk appetite. 
• Step 4: Choose your policy and purchase online or at a Paybima office. 

Tip: This method helps first-time buyers navigate the complexities of policy selection, ensuring they make a well-informed decision. 

4. Customising the Policy with Riders: 

Term insurance policies can be enhanced with riders to provide additional benefits. Common add-ons include: 

1. Accidental Death Benefit – Extra payout in case of accidental death. 
2. Critical Illness Cover – Lump sum payment upon diagnosis of specified illnesses. 
3. Waiver of Premium – Premiums are waived if the policyholder becomes permanently disabled. 
4. Income Benefit – Converts the lump sum payout into a monthly income for dependents. 

Tip: Paybima’s advisors help you understand the cost-benefit analysis of each rider, ensuring you don’t overpay for unnecessary add-ons while securing comprehensive coverage. 

5. Avoiding Common Mistakes in Policy Selection: 

First-time buyers often make the following mistakes: 

• Underestimating coverage needs – Choosing a lower sum assured can leave your family financially vulnerable. 
• Focusing only on low premiums – A cheaper plan may lack essential features. 
• Not disclosing medical history – Hiding pre-existing conditions can lead to claim rejection. 
• Ignoring policy exclusions – Some causes of death may not be covered. 

Tip: An advisor helps prevent these mistakes by guiding you through the fine print and ensuring that you select a policy aligned with your long-term financial security. 

6. Claim Assistance and Long-Term Policy Management: 

When you buy term insurance plan, the responsibility doesn’t end there. Claim settlement and policy continuity are equally important. Paybima provides end-to-end advisory support for: 

• Ensuring timely premium payments to avoid policy lapses. 
• Guiding nominees through the claim process in case of an unfortunate event. 
• Helping with document submissions and follow-ups with insurers.