The governing body, IRDAI has around 24 registered life insurance companies in India. Out of which most of the life insurers offer online term insurance policies in India. With them being so many in numbers, it really becomes a daunting task to shortlist the best online term insurance policy in India.
This article will certainly help you to figure out how to choose the best online term insurance policy in India.
What is a Term Plan?
Term insurance is a type of life insurance cover that would cover you for a specific time period. This time frame might stretch from 5 years up to 30 years purely depending on the insurance company and the plan that you may opt for. The most important feature of a term insurance plan is that it offers a death benefit to the nominee or the beneficiary on an untimely death of the insured.
For example, Kishan has a 30-year term insurance plan valued at Rs .1 Crore cover with a validity of July 01, 2040. If Ajay suffers an untimely death when the policy is active, then his beneficiary/nominee could get the full death benefit amount of Rs. 1 Crore.
But, if Kishan had to die a day later, after July 01, 2040, the policy would then have been expired. There would have been no payouts made to his beneficiary.
These payouts made to the beneficiaries are lump sum amounts offered once the insured passes away. However, if the insured outlives the policy term, then no money back or no funds are returned after the policy expires.
How to choose the best online Term Insurance Plan?
Term insurance plans are customized as per your requirement. Mentioned below are the steps to guide you to zero on the best online term insurance plans in India:
Identify the type of plan you are looking for
It is important for you to understand if you are looking for a no-frill insurance plan or a typical old-fashioned insurance plan. Depending on your requirement, choose a plan. This plan should ensure a lump-sum amount to your beneficiary once you leave the world. Decide a sum assured which is almost 20 times more that your current years income.
Does the policy offer accident cover?
Additionally, having an accidental death cover would definitely offer good benefits in case you meet with a road accident. Opt for a plan that covers accidental cover. By doing so, you can secure your family from the financial void created due to your death, especially if you are the bread-winner of the family.
Do you want to get insured against any critical illness?
You might think that your health insurance would take care of your hospitalization expenses. But you may not be aware that the critical illnesses if any, are not covered under a health insurance plan.
If you have a family history of critical illnesses, you should opt for a critical illness rider along with a term insurance plan. Sicknesses such as cancer, stroke, heart attack etc. would be then covered under this plan.
You want your family to lead a financially secured life
Your family would suffer an emotional and financial loss post your death, especially if you are the bread winner of the family. A term plan would ensure a lump sum amount and a monthly pay-out to your family members in your absence. This way they would live a lifestyle the way they wish to without compromising. So, the income void is replaced even when you are not around.
Do not consider only premium
Choosing a plan only as per the premium, is certainly a wrong way on choosing the best online term insurance plan. There are other factors like features, benefits, riders, exclusions etc. to be considered more over the premium component before narrowing down your search. Compare these factors along with keeping premium into consideration.
Is the insurer you choose to opt is good?
Every life insurer gives an assurance to fulfill your family’s requirements in your absence. However, it is essential to choose an insurer that has a good financial standing and claim settlement ratio. Higher the claim settlement ratio, higher is the chances of your claims getting rejected.
Once you get the answers for all the above questions, you would definitely narrow down your search on the best online term insurance policy in India. So, be wise and act wiser. Go for a term plan that would take care of your family in your absence and settle your claims hassle-free.