Why Compare Before Buying An Online Term Plan

It is not uncommon for people to compare the prices of vegetables or basic grocery items that are used in day to day life. However, when it comes to buying term plans, most of them leave the decision on their trusted insurance agents and blindly follow their advice. Or else, they just act lazy and buy the first plan they come across after being recommended by a friend or a family member. Only if they knew about online term plan comparison, they could have saved lots of money and got amazing benefits too!

Do you want to know the advantages of comparing plans and saving your hard-earned money?

Here are they:

1) Financial Benefits

Mr. A, a 25-year-old non-smoker male trusted one of his well-wishers and blindly went by his advice. He bought a term plan for 40 years for a sum assured of Rs. 1 crore at an annual premium of Rs. 10,015/-. On the other hand, Mr. B, a 25-year-old male relied on himself, researched about various plans, compared them online and bought himself a policy from a different company for 40 years for a sum assured of Rs. 1 crore at an annual premium of only Rs. 7,410/-. Did you notice the difference in the premium amount? It’s Rs. 2605/-. Now, if both survive the term of the plan and pay for 40 years, Mr. A would end up paying as much as Rs. 1,04,200/- extra as a premium for the same financial benefit as Mr. B! Here it is important to note that this premium amount remains same throughout the term of the plan so once you decide to buy, you can’t change premium with the same plan till the term expires! It’s much better to compare life insurance policies before buying them for maximum benefits.

2) Terms and Conditions

Every insurer has a different set of terms and conditions that define how your contract is going to pan out over the years. Under what conditions claim can be rejected, what is required to get claims approved and many such details are mentioned in the terms of the plan and vary from insurer to insurer. Only after comparing different plans will you come to know if the terms work for you or not. The difference between a general plan and the best term insurance plan lies in the plan’s terms and conditions.

3) Claim Settlement Ratio

It is not only important for premiums to be lower, but also for the insurer to have a high claim settlement ratio. If the company is good at servicing claims and settles a high percentage of claims it receives, then it makes sense to invest with them so that your family members won’t have to struggle to get death benefits.

4) Tenure of the Plan

Certain term plans offer lower premiums, but the term of the plan offered is also pretty less. The true benefit of term plans is when they are bought at a young age and should last till the maximum age limit that the plan allows. This ensures adequate coverage at low premiums. Compare life insurance policies for such benefits rather than buying a plan that completes its term even before your retirement!

5) Informed Decision

Knowledge is power and comparing different term plans help you to make the right decision. It is advisable to buy a term plan for the long term possible, preferably 30-35 years. Hence, the decision you take today will have an impact on the major part of your life. Since the total period and premium of a policy can’t be changed during the term of the plan, online term plan comparison gives you sufficient information to analyze and choose the best product for you and your family.

As you can see, the benefits of comparing term plans are manifolds even if you’re buying online term plans. Due to heave competition, it’s a buyers’ market, and you can derive a lot of benefits by comparing. Spend a bit of time and buy the best term insurance plan for you and your family members.

Source: http://www.suggestinsurance.com/blogs/compare-before-buying-online-term-plan/