Online Term Plans In India

Term Insurance Plans is an insurance policy that offers financial coverage to the insured person’s family in the unfortunate event of the insured not being around. One can opt to receive a lump-sum or monthly payments. Usually, the cover is offered for a particular term. This is the reason why the policy is called a Term Insurance policy.

What do you get with a Term Insurance cover?

• Lump sum in case of death
• Lump sum in case of critical illness
• Payments in case of critical illness or disability
• Option to take additional sum assured for accidental death

What about the premium?

The annual premiums start at Rs. 2000. You can pay the premium as a lump sum. Yearly, half- yearly, quarterly or monthly payments are also accepted.

What should you look at?

There are two main factors that you should consider before choosing a Term Insurance plans. They are:

Claim Settlement Ratio: Insurance is actually all about claims. Imagine a situation where your family has to run from pillar to post to get the claim amount despite giving all the documentation, only to find that the claim has been rejected. That’s the reason why the best insurance policy is perhaps one that settles claims fairly and swiftly. The Insurance Regulatory and Development Authority (IRDA)’s annual report, every year, reveals who has been settling claims in the right manner. As investor awareness has gone up, claim settlements have risen in the last couple of years. Five years earlier, hardly one or two firms had claim settlements at over 90%. The report for 2014-15 reveals that in the private sector, the average was 89.4%. Note that it was 88% in 2013-14. LIC, of course, had the highest claim settlement ratio among insurers. It stood at 98.2% for 2014-15. Also, LIC rejected fewer claims as opposed to private insurers.

*Source: IRDA’s annual report for 2014-15

Apart from this, it is important to read online reviews and ask your friends and family about their experience with the insurer. Ideally, speak to someone who has already got their claim settled.

Premium for your sum assured – Rs.1 crore seems like enough cover? It might. But to decide the best sum assured for you need to look at your income, the number of dependents who will suffer if you aren’t around and the number of loans on your hands. Experts believe that your life cover should be at least 20 times your annual income. So, Rs.1 crore sum assured might be enough for a bachelor earning Rs.5 lakh per year, with a single dependent and no loans. The sum assured will go up if you have more dependents or take on loans. Considering these factors, it is important to determine the right sum assured and check which insurer will provide the lowest premium for this amount.

If both you and your wife are working you can consider a joint cover. Also, check if the firm will provide you with riders at a low cost. This could include a critical illness rider, disability rider, hospitalization rider and accidental death rider.

Learn About Some Term Plans

Let’s assume we are looking for a Term Insurance Plans for a 30-year-old healthy male (non-smoker) who needs a life cover of Rs.1 crore and has a single dependent. These are the results.

Source: https://blog.bankbazaar.com/online-term-plans-in-india/