The term insurance is defined as a type of insurance that is availed for a fixed time or a certain period of time. One of the most basic difference between term insurance and life insurance plan is that the term insurance policy is comparatively less expensive as there is no cash value in it. The term insurance plan comes to an act when the policy holder dies within the time frame of the policy tenure. With the numerous options of term insurance plan available in market, buyers generally get confused while choosing the best plan for themselves. The online comparison of plans helps the buyers to choose the most beneficial plan that offers maximum coverage in affordable premium rate. Moreover, online purchasing of life insurance plan or term insurance have many more additional benefits.
Purchasing the most beneficial plan is a tricky task for a lot of buyers. People can end up getting confused and choosing the wrong plan. While choosing the plan there are many aspects that should be checked like amount of life insurance that we should buy, total sum assured offered by the policy, premium tenure, which company to buy for, etc. Here we have mentioned some of the benefits of buying term insurance plans online.
Determining the Coverage, you need
There are many different aspects that influence the amount of life insurance coverage that one should have. Keeping the number of family members in mind that should be covered under that plan in case of emergency, the insured should go for the plan. While determining the coverage that you need one should check the life stage of the insured and the responsibilities that they have to carry.
Life Stage and Family Member
As we all know that term insurance or life insurance plan are bought for the protection and the security of the loved ones. So that they can be financially secured in case of the uncertain demise of the policy holder. Therefore prior to buying a term insurance policy, the insured should consider who all there in the family that would like to be secure. 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.
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 one 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 insurance company set by the total number of claims by the policy holder. Therefore, it is important to watch out this metric as a low claim settlement ratio indicates that insurer has a history of higher policy rejections.
The income factor
Whether the family has a single bread winner 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.
Many insurance companies provide add-on coverage to the basic policy, which is known as riders. By adding riders to the basic policy, one can avail the additional benefits applicable to a part of the base policy. The insurance company offers riders like critical illness rider, disability rider and accidental death benefit riders which offer an add-on benefits to the policy holder above the basic policy.
Choosing the Right Insurer
Choosing the right insurer is the next big thing to do while purchasing a life 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 background check of the company so that you can know that 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.
Many insurance companies provide discount while purchasing a policy online. So, comparing the different policies online while purchasing the plan can be very beneficial for you. One of the most important factors that should be kept in mind is whether the plan covers your need to secure your dependents equally.