Choose Most Suitable Online Term Plan and Secure Your Family Future

A term insurance plan is a pure protection cover that pays your family a lump sum amount equal to the sum assured, in case of your unfortunate death during the policy term. It secures the financial future of your family.

Being a pure protection plan, it is available at a nominal premium. Buying an online term insurance plan helps you to receive additional discount on premium, so it’s the most cost effective way to ensure financial security for your family or loved ones.

Tips to Choose the Best Term Insurance Plan

We are listing down the key points that will help you to choose the best term insurance plan.

Assess the Life Cover: When you are looking to buy a term plan, the first and foremost step to assess the life cover you need, depending on the number of dependents, how much money you need to fulfill their financial goals like child’s education & marriage, re-payment of debts. When deciding on the life cover or sum assured amount of family term insurance, you should consider inflation factor. Choosing a sum assured of Rs 20 Lacs may not be enough to cover the financial expenses of your family say 20 years later.

Buy Early: Age factor is a major determining factor for term insurance premium. If you buy early say at 28 years, you can get the life cover at a lesser premium than one who is buying this plan at an age of 40 years. The insurance company has a view that a young individual has less risk for any health related complication. When seeking to secure the financial future of your family, it is thus advisable to buy a term plan early in your age that will help you protect the financial interest of your loved ones plus save a lot on the premiums through the entire policy term.

Choose only Required Riders: A Rider or add-on provide additional coverage under the policy, upon payment of additional rider premium. It is thus advisable to choose only the requisite rider/s, depending on the level of protection you need for you or your family. Riders that you can choose under a term plan include Accidental death benefit Rider, Disability Rider, Critical Illness Rider, Income Benefit Rider, Waiver of Premium Rider, etc.

Look for Claim Settlement Ratio: Claim Settlement Ratio is an indicator of proclivity of an insurance company towards paying the claim amount under an insurance policy. When you are seeking to choose an insurer for buying a term policy, don’t forget to search for its claim settlement ratio. It is advisable to pick an insurer having high claim settlement ratio that will increase the chances for quick and easy claim settlement for your policy.

Max Life Insurance Company has 96.23%, Aegon Life has 95.30% and HDFC Life Insurance Company has 95.02% of claim settlement ratio.

Buy Online: By buying term insurance plan online, you can get the life cover at lesser premiums, intermediary cost is eliminated. Online buying of insurance involves a hassle-free procedure plus enjoy the quick policy issuance.

Before buying a plan, you should compare various term plans available and choose the best one that suits to your protection needs.

Best Term Insurance Plans

Life Insurance Companies Term Plans Age at Entry Maximum Maturity Age Minimum Sum Assured Policy Term
Max Life Insurance Company Max Life OTP Plus 18 to 60 years 75 years Rs 25 Lacs 10 to 40 years
Aegon Life Insurance Company Aegon Life iTerm Plan 18 to 65 years 80 years Rs 25 Lacs 5 years-up to 80 years of age
HDFC Life Insurance Company HDFC Click2Protect Plus 18 to 65 years 75 years Rs 25 Lacs 10 to 40 years
ICICI Prudential Life Insurance Company ICICI Pru iProtect Smart 18 to 65 years 75 years Depending on minimum premium 5 to 40 years
Bajaj Allianz Life Insurance Company Bajaj Life eTouch 18 to 65 years 75 years Rs 50 Lacs 10 to 40 years

 

Read our article “Are You Choosing the Right Term Insurance Plan” for understanding more about term insurance.


Conclusion

Life is uncertain and it is always important to secure your family’s financial future, so they don’t have to devoid of finances when you are not around. By choosing the best term insurance plan, you are supporting your family financially, even in your absence. It is also advisable to first compare various term plans online and then choose a plan after assessing the protection needs of your family.

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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