How do you compare term insurance plans online effectively?
Term insurance is one of the most common types of life insurance. It ensures the financial security of your beloved family members even after you face any unfortunate circumstance. One of the primary reasons for its popularity is its affordability. However, finding the best suitable plan, depending on your circumstances, might seem a bit far-fetched.
Term Insurance Plans in India
But, since the market is loaded with a variety of products, you need to compare several competent plans to get a comprehensive idea of the concept and then choose the most suitable one after critically considering your situation, budget, affordability, total number of dependent family members, health status, income, and other relevant factors.
Why is it important to compare term plans?
Comparing term plans is crucial to ensure long-term financial benefits for your family while maintaining an affordable approach. These days, you can easily compare a term insurance plan online with another. Some of the strategic reasons for comparing term plans before purchasing are:
1. Best value find:
Several insurers offer variable premium rates for identical coverage protection. You can discover the most cost-effective ones through critical comparison.
Tip: You have to guarantee that the coverage extent is in sync with your risk tolerance capacity and financial targets,
2.Features and benefits:
Several term plans allow rider benefits for coverage expansion. Compare the types of riders available, their prices, and how much they suit your needs. Some of the most popular riders include accidental death cover, critical illness cover, disability cover, etc. Critical comparison aids in the crucial assessment of the overall value of your chosen plan.
Tip: Ensure that the premiums paid towards these riders qualify for tax deductions.
3. Claim settlement:
The chief purpose of term plans is to ensure the safeguarding of the financial security of the family members after an unfortunate event. Considering the challenging circumstances, quick claim settlement is of utmost importance.
Tip: Compare different plans and consider the customer reviews to understand the claim settlement process and the approximate time taken for claim settlement by diverse insurers. It must ideally maintain a high claim settlement ratio.
4. Customisation:
Considering your age, health status, lifestyle, income, etc. you might need some additions and alterations in your plan. You can tailor your necessities through careful comparative research.
Tip: Your study must ensure to get the best and most reasonable coverage depending on your circumstances, avoiding unnecessary financial drainage.
5. Cost-effective:
It is crucial to maintain enough coverage for oneself. But, optimising the coverage limit is also essential based on your budget.
Tip: Effective comparative study allows you to choose the best and the most reasonable plan without compromising on the coverage span. Comparing a term insurance plan online aids you in optimising the overall investment value.
Top 4 Ways to Compare Term Insurance Plans in India:
We have made a gist of the easy and common ways to compare term plans:
1. Online
A term insurance plan online comparison is the most popular and convenient method to follow nowadays. Several online platforms are easily available, offering comprehensive insight into the details of your chosen plan. You can easily relate the premium, coverage span, features, claim settlement process, etc. all under one roof.
2. Independent financial advisors
You can approach professional experts and financial advisors who will guide you along the way. Our team of Paybima experts are highly dedicated towards optimum customer satisfaction.
3. Company brochures and websites
You can visit the official websites of different insurers and review their respective product brochures, to know about your selected plan in detail before buying. You can estimate the probable premium payable amount by using the online premium calculator as offered by most of the insurers and plan your financial portfolio accordingly.
4. Direct interaction
You can directly interact with the insurance company officials to clarify all your queries and doubts. This way, you can also gain an understanding of the customer service facility of the insurer.
Types of term plans:
| Plan Type | Description | Ideal For |
| Regular Term Plan | Allows Lumpsum Benefits To The Beneficiaries After The Demise Of The Policyholder. Constant Premium Throughout The Course Without Any Maturity Benefit If The Insured Outlives The Policy Tenure. | Those Seeking An Affordable And Simple Life Insurance Product Are Willing To Protect The Family's Financial Well-being. |
| Level Term Plan | Allows Lump Sum Death Benefit After The Demise Of The Policyholder. The Premiums Remain Constant. | Those Seeking Fixed Death Benefits Are Completely Predictable And Straightforward. |
| Decreasing Term Plan | The Sum Assured Amount Decreases At A Pre-determined Rate Over The Plan Tenure, But Premiums Remain Unchanged. | Those Seeking Coverage For Certain Specific Liabilities Like Home Loans, Where The Dues Decrease With Time. |
| Increasing Term Plan | Sum Assured Enhances At A Pre-determined Rate During The Plan Term To Beat Inflation With Annually Increasing Premiums. | A Long-term Financial Portfolio Is Needed For People Whose Income Is Supposed To Increase With Time. Usually, For People In The Earlier Part Of Their Lives. |
| Return Of Premium Term Plan | Allows Lump Sum Death Benefit. If The Insured Outlives The Plan Tenure, They Get A Refund Of The Total Premiums Paid So Far. | Those Seeking A Combination Of Protection And Savings But Willing To Shed A Few Bucks More Towards Premium Payment. |
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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