Life insurance is priceless. Nowadays, it is necessary for every person to own a life insurance policy to secure their lives from unforeseen circumstances. This will give you the mental peace that your family has the required financial support in the unfortunate occurrence that something happens to your life.
A term insurance policy is a type of life insurance that provides coverage for a fixed period of time, i.e., anywhere from 5 to 40 years. It is the best type of policy to have if you need to take care of other fixed payments and cannot spend a lot of money on premium. But before you buy a term insurance policy, you need to make a market comparison so you can find the best term insurance plan. Not sure how to start the comparison process? Read on to find out.
Compare Before You Get the Best Term Insurance Plans
It is best to conduct research before purchasing the insurance policy than to regret your decision later. With the assistance of an online insurance aggregator like Coverfox.com, you can easily compare policies from insurance companies based on:
Premium is the yearly cost you incur to maintain your insurance policy. One of the features of the best term insurance plan is a low premium amount. Among the policies available, try to find the one that provides you with a cost-effective premium without compromising on the benefits.
The tenure of your term insurance policy is an important characteristic to compare. The longer the duration of the policy, the lesser the premium will be. While most insurance companies provide term insurance for up to 35 or 40 years, your age is an important factor that will contribute to the determination of the tenure. The older you are, the shorter your tenure eligibility will be.
Does your policy cover disability and death? Are you eligible for maturity benefits if the policy expires before you die? How much coverage should you opt for? These are three questions that your policy needs to provide the answers to.
Choose a policy that covers both disability and death. Further, it is best to opt for a Term Return of Maturity plan that refunds the premium amount upon maturity. This way, if you outlive the term of your policy, you won’t lose out on the money. Further, sum insured is an important aspect of coverage that you must evaluate based on your family’s lifestyle.
Claim Settlement Ratio
Claim settlement ratio determines the percentage of claims settled over the claims that were submitted to an insurance company. A CSR ranging from 75% to 90% above is indicative of an insurance company with a good settlement policy. The higher the CSR, the more chances there are of your claim getting processed successfully.
Additional benefits are available in the form of riders. Riders are add-ons that you can include in your policy so that you can derive further value if ever required. Some common riders are critical illness rider and hospital cash rider. Select your riders wisely.
Right Steps to Get the Best Insurance Plans
To get the best term insurance plan, there are just three steps you need to follow.
Step 1: Evaluate Your Requirements
The first step to getting the best term insurance plan is to understand your requirements. This means deciding the budget, evaluating your family’s current lifestyle, and calculating your existing liabilities. Remember to keep in mind external factors such as inflation before deciding on the sum insured that you want from your policy.
Step 2: Conduct Appropriate Research
The next step is to conduct appropriate research online. Once you enter the basic details such as your name, age and smoking habits, you will be able to access a list of policies. Comparing and contrasting the features of these policies will help you make an informed decision about the one that suits you best.
Step 3: Make the Payment
After you make your final choice among the available policies, all that you have to do is go through with the payment. Once you finish this step, there is no need to wait for the hard copy of your policy documents to be posted to you. Within seconds, you will find these files in your inbox.
Getting your term insurance policy online is simple, quick and convenient. When it comes to buying a life insurance policy, it is always best to start young. This will help you get a lower premium, higher tenure, and better benefits as well. But if you are unsure about the process and have queries that are holding you back, then Coverfox.com can provide you with all the assistance you need.
Starting from answering your most basic questions about insurance policies to taking you through the payment stage, this website will provide you with all the information you require. So, without wasting any more time, get yourself insured today!