Buying a term plan online is undoubtedly a smart move, since it will help you financially safeguard your family in case something happens to you. Who wants their loved ones to depend on others, compromise on their dreams or even sell off assets when they pass away? As a result, term insurance is the best solution to financially empower them in such scenarios. However, you should not jump the gun and buy the first term plan you find. It is essential to consider multiple factors before zeroing in on the best policy that is tailored to your needs.
What to Know Before Investing in a Term Plan Online?
Remember that you can always compare multiple offerings while buying a term plan online. Hence, you should always keep an eye out for these aspects:
- Coverage amount- You should have calculated a suitable coverage amount in advance. This may be 10-15 times what you earn annually, or a figure based on the Human Life Value (HLV) method, which considers inflation, debts, future goals like higher education, and projected household costs down the line. You should always go for an insurer offering adequate coverage that matches your desired amount.
- Premium amount- What’s most important is to be able to afford the coverage that you want. You should compare premiums across multiple plans and insurers to find the right amount that you can comfortably pay each month. However, the lowest premium is not always the best option, as some plans may have limitations such as higher waiting periods, restrictive exclusions, or fewer payout options. Instead, prioritise comprehensive coverage with a reasonable premium.
- Terms and conditions- Always check the policy terms and conditions carefully before signing on the dotted line. Make sure that you are aware of all the features, charges, and other aspects. The insurer should ideally allow you to customise the premium payment frequency and the nature of the sum assured payout. Some insurers also allow you to increase the coverage amount in the future.
- Riders and add-ons- Your insurer should allow you to customise your policy and widen its scope by integrating various riders. These may include waiver of premium, critical illness cover, terminal illness cover, accidental death/disability, etc. Note that critical illness and terminal illness riders cover different conditions, so ensure you understand the distinction before adding them to your plan.
- Reputation of the insurer- This matters a lot since you don’t want to be stuck with an untrustworthy financial institution. Always check the Claim Settlement Ratio (CSR), Persistency Ratio, and average claim processing time before choosing an insurer. Additionally, examine the procedures followed by the insurance company (online application, medical tests, claim documentation, etc.) and read online reviews and testimonials. This will help you select the best possible insurer for your term plan online.
Purchase a Term Plan Online Today and Financially Secure Your Family
You can buy a term plan online to financially safeguard your family. While online processes have made buying a policy more convenient, eligibility depends on factors such as age, medical history, and lifestyle habits. Some policies may require medical tests, especially for high sum assured amounts. Keeping the above-mentioned factors in mind will help you make an informed decision before finalising your purchase.
