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The most cost-effective way to secure the financial future of your family is to have a term insurance plan. With a high insurance coverage at a low premium rate, a term insurance plan is must to have for every individual in order to have a financially secured future. You should set certain financial goals in life so that it becomes easy to lead an easy life when you retire from your work.
Nowadays, for the convenience of the buyers, most of the insurance providers offer the online process to purchase the policy. As compared to the traditional way of purchasing a policy, the online process of policy purchase is transparent, simple, and economical. Besides this, it offers you an opportunity to make an informed choice and choose the most lucrative plan according to your own suitability.
Apart from the simple and hassle-free process of policy purchase, there are many advantages to buying a term insurance plan online. Let’s take a look at how online term insurance plan helps in achieving your financial goals.
Cost
The online mode of availing term plan is a lot more economical as compared to the offline mode. Most of the online term insurance plans have a lower purchase cost up to 25% as compared to the offline term plans. This is mainly because there are no agents involved in between and you can directly purchase the policy from the website of the insurance company. Secondly, most of the insurer works on the belief that the mortality cost of is lower in case the buyers purchase the policy online as compared to the offline buyers. Thus, the premium rates offered by the online term insurance policy are lower and it provides higher insurance coverage contrary to the offline term plans.
Sum Assured
As the online term insurance policy includes the overall lower cost, the total sum assured amount are likely to be higher as compared to the offline term plan. Thus, by purchasing the plan online, one can avail higher insurance coverage at a lower premium rate. Moreover, as purchasing term plan online results savings, you can invest the saved amount in the market in order to gain returns on investment in a long-term and accumulate wealth for the future. In addition to this, in most of the online policies, medical tests are not required. Medical tests are only required in case the sum assured amount is more than Rs.50 lakh.
Premiums
As compared to the offline term plans, the online term insurance policies offer high life insurance coverage at a very low premium rate. This is because when you purchase a policy online then you don’t need to give any insurance agents’ commissions and the benefits are directly passed down to you. Thus, with the online term plan, you can not only provide financial security to your loved one but can also save money in order to create a financial cushion in the long-term.
Comparison
One of the major advantages of purchasing the policy online is that you can compare the extensive range of policies online and then zero in on a policy. Moreover, by comparing the quotes of different policies you can choose the most beneficial plan as per your own requirement. The facility to make a comparison online provides clarity and helps you to take an informed decision.
Protect and save strategy
By purchasing the online term insurance plan of your desired sum assured and term period, you can apply the strategy of protecting and saving. You can start saving the difference between offline and online policy premium amount by making an investment through SIP in equity mutual fund schemes. This way you can not only provide financial security to your loved ones but can also accumulate wealth in a long-term in order to achieve your financial objectives of life.
Online Tools
Most of the insurance companies offer online tools in order to help you determine the amount of coverage you will require to protect your family. According to the experts, you should choose coverage at-least seven times the annualized premium. In order to determine the coverage amount of the policy and how much premium you will require to pay against the policy, there are various factors that are considered such as the age of the insurance buyers, number of dependents, current income of the insurance buyer, standard of living, etc. You can top it up with the prevailing liabilities like a home loan in order to reach the final figure. It is advised that you should review your insurance needs every five years. Many insurance companies provide a discount while purchasing a policy online. So, by comparing the different policies online while purchasing the plan can be very beneficial for you.
Rider Options
Online term insurance plan offers different types of rider options as compared to the offline term insurance plans. There are some of the additional riders benefits which are offered online are accidental death benefit rider, premier waiver ride, and terminal illness rider. These riders benefit are very useful and can be opted in case you want to enhance the coverage of the policy. However, evaluate the extended coverage you will get through riders before adding to the base plan.
Uniqueness
Did you know that you can easily fulfill your financial objective by buying a policy online at a lower cost? Online insurance plans come with premium payments that are 25 percent lower in terms of cost compared to offline policy cost. Yet again, the cost of online term plans is lower than offline term plans. Remember, an offline insurance plan becomes more costly because an intermediary is involved in it.
There are certain things that should be kept in mind while purchasing online term plan so that you can achieve your financial goals in a simple and hassle-free way.
Access your need and Budget
While assessing the different available options, the insured should definitely consider that whether the sum assured will be able to meet your family’s future financial requirements. It is wiser to keep the inflation rate in mind while evaluating your needs. In order to assess your needs, you can also use term insurance calculator to calculate the premium one need to pay.
Claim settlement Ratio
This is an important factor to check on while choosing the term insurance plan. The claim settlement ratio can be described as the number of claims that the insurance company set by the total number of claims by the policyholder. Therefore, it is important to watch out this metric as a low claim settlement ratio indicates that an insurer has a history of higher policy rejections.
The income factor
Whether the family has a single breadwinner or there are other members too in the family who contributes to the family income. This factor plays a significant role in deciding the amount of life insurance one should purchase.
Determining the coverage you Need-
One of the most important steps while purchasing a term insurance plan is to calculate the required amount of coverage. The insured should understand properly the multiple elements that influence the amount of life insurance coverage. According to the experts, it is recommended a purchaser should buy a policy with a death benefit of 8-10 times from his gross annual income. Certain factors like needs of the dependents, an annual income before taxes and the age factor should be considered by every individual to while choosing a plan.
Family members and life- stage-
More than the security of our-self generally the main reason for buying term insurance is the security of our loved ones and family from any types of unforeseen situation. Therefore, considering the numbers of the member in the family that would like to be secured is important. The financial responsibility of a person varies from individual to individual. A single person will certainly have less responsibility as compared to a married person. Therefore, it is important to take policy keeping the members in mind.
Check the City
Before purchasing a term insurance plan, check whether the insurance company offers the plan online in your city or not. As online term plans are not on sale in every city.
Choosing the Right Insurer
Choosing the right insurer is the next big thing to do while purchasing a term insurance policy. As in today’s time, there are multiple companies that offer term insurance, deciding upon which one to opt for is very difficult. It is important to check the company’s website and do the backgrounds check of the company so that you can know how reliable the company is. There are some of the important factors that you should look for while zeroing the insurers. These factors include claim settlement ration, strong financial track record, service standards, market reputation, and corporate governance.
Speak to the Insurer
Prior to filling the online application form, call the insurance company once. Know the process in a detailed way before making any decision such as medical test, about the claim settlement process, documentation, etc. Some insurers’ offers the facility of live chat where you can clear all your queries related to the policy. Moreover, the customer support service also guides you to purchase the most beneficial plan as per your own choice. You can fill the form online and can make the payment online. However, you will require sending the other important documents by email.
Enhanced Feature
Nowadays, many new features are offered in term plans. Instead of getting a lump-sum payment on the death of the policyholder, one can avail many add-on payments along with the total sum assured amount. For instance, various online term insurance plans offer 20% of the sum assured on the demise of the insured person and the rest amount is paid in installments till the policy term comes to an end. Moreover, in the case of some plan, the sum assured amount keeps on increasing every five years. Therefore, while comparing and choosing such a plan the insurance buyers should keep in mind that similar plans should be compared.
How can you choose the Best Term Insurance Plan?
There are simple steps that you need to follow in order to choose the best-suited term insurance plans.
- Calculate the amount that you need as the sum assured
- Compare all the available options online
- Determine whether you want to take a policy with return of premium or not
- Check the lowest premium policy that offers the highest sum assured
Checking of claims settlement ratio of the insurance company is very important. This step is often overlooked by many people but it is utmost crucial to check the settlement ratio prior to making any decision. This will help you to know the percentage of claims honored by the insurer and the number of claims that they received in last year.
Conclusion
There are a variety of benefits that one can avail by purchasing term plans online. There are many websites over the internet that will help you to compare a variety of term life insurance plans and choose the best-suited plan for your need. Comparison of the policies will help you to access all the features and key benefits of each policy and you can make a wise decision after evaluating all the options available to you.
With the proper online comparison of term insurance policies, you can easily find the lowest premium policies and the insurer that can offer you the highest sum assured for the lowest premiums.
Given the range of policies available today, it becomes truly difficult to select one. In case, you are still finding it difficult to choose an insurance company all by yourself, talk to an intermediary or any trusted insurance broker who may suggest you the best names. Then, select those names and check it online to assess how good the company is and how it can help you achieve your financial goals. Buy a term insurance policy today, and feel better tomorrow.
