Life is full of uncertainties, and a breadwinner needs to get term insurance done in order to secure his/her family’s future.
Term insurance covers the family of the insured after his/her death due to illness or accident. To ensure that loved ones and family members do not go through any hassles if the earning member of the family is not anymore, one must invest in a solid term insurance plan.
Thanks to Technology, these days, many of the best Insurance companies in India are on the digital platform, exhibiting the best term insurance plans that can be customized as per ones/needs and demands. Buying term insurance online is the most appropriate way to buy a term plan as it saves time, effort, and money to speak to many agents, understands different plans, comprehends the best policy by strategic comparisons, and above all, incessant tackle follow-up done by agents.
It is highly recommended to buy an Online Term Plan to avail maximum benefits.
Term insurance plan comes packed with many advantages, features and benefits. Some of the main advantages of term insurance plans are discussed below:
In case of the untimely death of the bread earner of the family, there is financial stability that a term plan can offer to the insured's family and dependents that even after he is not there, their financial needs are taken care of.
Objectives and goals of long-term planning benefits can also be derived from a term plan insurance, which ensures a good amount to be disbursed after investing in it till the time an earning is made by the insured. After the income stops, these savings can help him survive in his later years when he is old and unemployed.
A term life insurance is an essential part of your financial plan. It provides stability to your financial plan and ensures that your dreams and the dreams of your loved ones are not unfulfilled due to any unfortunate incidents in your life.
As a part of long term goal, in case of huge debts like education, new business, or even marriage of children, this investment can come handy in the form of a term plan that can help the insured lay-off his huge debts.
The term plan acts as insurance against the outstanding debt and in case of an unfortunate fatal event befalls the insured, the term insurance plan kicks in and clears the debt so that the kin of the insured does not have to bear the burden of the outstanding debt. Most loans like housing loans usually do attach a term life insurance equal to the outstanding debt as a part of the loan.
Term plans can be beneficial in fulfilling retirement benefits like regular inflow of finances, even when the insured is out of employment after a certain age. You may opt for many options like Return of premium or fixed/increasing income plans where you get maturity benefits as a part of the term insurance plan depending upon the option you selected. However, such options are not available in all term plans.
Under section 80 D of the Indian Income Tax Act 1961, one can derive tax benefits out of the term insurance policy he applies for.
For example, if a 30-year-old man wants to get term insurance of Rs 1 Crore with a duration of 30 years, what online options can he get?
***The sum insured quoted include service tax***
|Insurer||Term Plan offered||Premium (Rs p.a.)||Renewal age||Riders available||Key features|
|Aditya Birla Sun Life Insurance||LifeShield Plan||9965||85||5||
|Aegon Life Insurance||iTerm||10692||100||4||
|Bajaj Allianz General Insurance||Life Cover||13812||99||4||
|Canara HSBC OBC Life Insurance||iSelect||20368||99||0||
|Exide Life Insurance||Exide Life Smart||75||2||
|Edelweiss Tokio Life Insurance||Protection Plan||8208||80||3||
|Future Generali India Insurance||Future Generali Flexi Online Term- Lumpsum||5840||75||1||
|HDFC Standard Life||Click2protect plan||8641||75||1||
|ICICI Prudential Life Insurance||iProtect Smart Lumpsum||12970||99||2||
|IndiaFirst Life Insurance||e-Term Plan||5064||65||0||
|Kotak Life Insurance||e-Term||7848||75||2||
|Max Life Insurance||Smart Term Plan Life Cover||6852||85||1||
|PNB Metlife Life Insurance||Mera Term Plan||8459||75||3||
|Reliance Nippon Life Insurance||Reliance Digi-Term||9331||65||0||
|SBI Life Insurance||eShield||7068||80||2||
|Tata AIA Life Insurance||Tata MahaRaksha Supreme||11124||85||2||
Disclaimer: Paisawiki does not rate, endorse or recommend any specific insurance provider or insurance product offered by any insurer.
The above-listed plans share some commonalities when it comes to features. It is essential that you are aware of the most common set of features offered by almost all term plans available while selecting the right policy for you so that you can zero in on the right one.
Most term plans have the following benefits covered as a part of their standard offerings:
Up until maturity, if the insured meets with an unfortunate and untimely death, the sum assured will be passed onto the nominee.
Most term insurance plans provide an option to add-on this rider for a small increase in your annual premium. As per the terms of this rider, the nominee can claim the accidental death benefit if the insured meets with accidental death or permanent disability due to an accident.
Most insurance plans also offer an add-on rider for covering critical terminal illnesses. The specific medical conditions covered and the process shall be detailed in the policy terms and conditions.
Apart from these common covers, specific benefits offered by the term insurance plans vary from one policy to another. You must read the policy prospectus/brochure carefully and get expert advice, if required, before taking long term decisions.
Some additional features and benefits offered by some plans are:
Many term plans come with an option where you can get back the complete premium amount you paid at maturity of the policy for a small increase in your premium amount. Using this option provides you with the combined benefit of insurance and savings.
Many term plans also offer the option to opt for fixed or increasing income returns in place of death benefit after the policy maturity. This option provides you with the dual benefit of having secured yourself with a term plan during your youth which gets converted to a source of income at a later stage of your life.
Most term plans also offer you the benefit of covering your partner under the same term insurance plan so that it provides complete protection to your family in the future.
Many term insurance plans also offer premium benefits that encourage you to lead a healthy lifestyle and for women to get themselves insured.
The true meaning of insurance is Term Insurance. Evaluate and consider the best insurance plans by strategically analysing companies and their plans online. Certain parameters to be considered while choosing the best insurance company to invest in for purchasing the apt terms plan from are:
There are several prominent insurance companies in India all operating under the regulations of IRDAI. While selecting a term plan, one must remember that a term plan is a long-term commitment that could last for decades. This decision should be made after careful due diligence and in a manner to get the most value for your money.
Being stuck in the wrong term plan could derail your insurance and investment strategy and may force you to change your insurer after a few years which will add to the costs of your insurance. It is also great if you start your plan as early in life as possible, once you become financially independent. Premiums are much lower when you are young and that is the time when you should be insured the most as you have a full life of possibilities ahead of you.
It is also important to get a background of the various plans available, compare them in terms of features and cost, avail the advice of experts if required, do online research and plan your insurance purchase. You should have an insurance strategy which fits in well with your overall financial strategy for life.
Also, consider the flexibility built into the plan. If your financial situation changes in the future then an insurance plan should provide enough legroom for you to adapt it in your new financial plan. A fixed and rigid insurance plan could force you to switch it at a later stage for a more flexible term insurance plan.
The reputation of the company does matter since it is an investment stretching into decades. You want to be assured that you will continue to get the best service for years and years without hassles. Parameters like claim settlement ratio provide a glimpse of how good an insurer is when it comes to settling claims under the insurance plan.
Technology has made it very convenient for individuals to research various insurance options available online and choose the policy that is best suitable as per his needs. Some of the common benefits derived from purchasing an online term plan are:
Buying an online term plan gives a huge advantage in lower cost as the agent commission, communication, and commuting costs are cut down. There is a direct deal between the insurance company and the individual. Approximately, the cost difference is from 40-50% as it does not cover the middleman's commission and fees. Also, insurance companies believe if the individual is buying an online term plan insurance policy, the mortality rate is also less in such cases.
The customer has the advantage of customizing the term plan as per his demands, needs, desires, and expectations. He can choose between add on, top-ups, and extended riders he would want to buy along with his plan.
Various modes of payments and pay-out options make term insurance plans really flexible. You can easily customize your plans online with the click of a few buttons. This helps you get exactly the kind of insurance, which you were looking for.
As easy as it is to buy an online term plan, similarly, claiming settlements are equally easy and user-friendly. Instead of going through the hassles of contacting the agent frequently for the status of the claim, one can also check online. Also, in case of ineffective delays in claim settlement, IRDA has issued the right for the insured to file a complaint to the Insurance Ombudsman to look into the matter and to expedite the claim settlement procedure.
As compared to an offline policy, the insured gets the benefit of a higher sum insured and assure while purchasing and online term plan. Alternately, many plans also offer premium benefits upon selecting higher sum assured.
There is no hidden information. Agents tend to hide negative information, which may impact the customer at some point in time. Still, while purchasing an online policy, there is no such contingency, and complete transparency is maintained in the policy document.
You can easily compare plans and get the latest information published by your insurer at the click of a few buttons. Buying insurance online helps you gain a better insight into the insurance options available and you get the inputs needed to make the best decision.
Online customers have several ways to interact with the customer care department of any respective insurance company if the policy is through an online portal. Instead of getting bothered by making umpteen calls to a specific agent, it is easier to have access to a 24*7 customer care helpline number, email access, and message service to the insurance company to resolve issues.
The best part about buying an online term plan insurance is a comparison of a multitude of insurance companies and their myriad of term insurance plans available. Each plan could be different in terms of benefits, premiums, costs, claims, the sum assured, and extra benefits. The individual has the choice to research all given options, compare each one, and select the best policy as per his need and comfort.
Just like a higher sum assured, the lower rate of premium is available for the insured to be paid towards the insurance company, considering no extra cost of the agent.
It is a self-service application, and the customer needs to be smart enough to plan, scrutinize, and critically analyse each option. The complete responsibility of the term plan purchase lies on the customer, thus empowering him to be his boss and select the best deal for himself.
It is more comfortable for the insured to do a quick reputation and goodwill check of each insurance company and get easy accessibility to all vital information regarding the company and its policies. The terms and conditions of each policy are clearly stated ad the customer should be smart enough to read them diligently and accept it with the car.
|Points of difference||Online||Offline|
|Intention||Clear intention to buy, so he will choose the plan that best suits his needs||Intention To sell so that the motive would be a hike agents commission rather than the customer’s advantage|
|Cost||Low cost, Low premium, and High sum Assured||High cost as it involves the agent’s fees, charges and commission, high premium and thus a low sum assured|
|Choice of product||His/her own||Recommended by the agent|
|Saves time and effort||Yes, with a hassle-free experience||N, incessant meetings and conversations with the agent can confuse and tire the customer|
|Responsibility, answerability, or clarification.||The Insured is completely responsible for everything as he is the sole person to comprehend the policy and buy it.||Agent helps|
|Human interaction eliminated||
The direct deal between the insurance company and the insured
|Interaction with the agent can be exhausting.|
|Fraud||Least chances of any fraud||More chances of getting conned|