Term insurance plans are essential for an individual who wants to safeguard the family and dependents from financial difficulties they would otherwise face in case of his or her untimely death. Being a basic kind of life insurance policy, a fixed sum assured becomes payable in the event of the death of the policyholder during the plan tenure. If the individual survives the term of the policy, he does not become eligible for any returns unless an investment component lies pre-attached to the policy.
Term insurance plans secure the family from financial emergencies in case of unforeseen situations. They provide a lump sum to the dependents to give them financial stability, helping them pay off existing liabilities.
With the internet having taken the world by storm, you can avail the best term insurance plans online. Some of the companies offering premium term insurance plans are LIC, Max Life, TATA AIA Life, Bajaj Allianz, Birla Sunlife, HDFC Life, Aegon Life, Kotak Mahindra Life, and more.
Check the details, benefits, and riders of individual term plans online to know entry age, policy term, and death and illness benefits. It is also important to consider the claim settlement ratio of the company to gain insights on the number of policies that are settled by making payment of the sum assured in case of the policyholder’s death.
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How to Purchase Term Insurance?
Traditionally, insurance companies have been relying on agents and consultants to provide marketing and sales support. One way of purchasing term insurance is through them. You can request for information on the term plans available and the company usually arranges for a meeting with a representative or agent. If you are satisfied with the policy benefits, you can opt for getting the registration formalities done offline by filling up the policy form and submitting necessary documents. The documents are analysed and it takes a few days before the policy comes into effect.
If you are looking for the best term insurance plan online, visit an insurance comparison portal such as Coverfox.com to understand various offerings from popular life insurance companies in the country. In this age driven by technology, insurance comparison can be done in a jiffy and the online term plans availed quickly and efficiently.
Here is a broad outline of the steps involved in buying one of the latest term insurance plans online.
- Log on to the company website and look for a clickable link that reads something like “Buy Term Insurance Online” or “Online Insurance”.
- Input details such as the figure for the sum assured, tenure of the policy, and the premium payment frequency.
- After filling up the mandatory fields, the premium amount will appear.
- Choose the bank you will be making the payment of the first premium from and receive an acknowledgement upon the successful completion of the transaction.
- After a few weeks, approximately 21 days, you will hear from the insurance company on whether your insurance policy has been approved by the underwriting team.
- Upon approval, you will receive the soft copy of the policy and the hard copy subsequently.
Buying a term insurance policy online is usually a hassle-free experience and companies must strive to make it as simple as possible for the end user. Fewer the clicks required the better. In addition, the website navigation must be simple and easy to handle even by the not-so-tech-savvy user. The payment gateway must also be user-friendly and should be able to quickly process payments after you authenticate your transaction.
How Do You Save Your Money With Term Insurance?
We already know that a term insurance policy is a pure life cover that remits the value of the sum assured to the dependents in case of the policyholder’s death during the policy tenure. Since a term insurance provider is not liable to make any payment if the policy owner survives the term of the policy, the premium rates are usually lesser than policies offered with a maturity benefit.
The premium you pay for even the best term insurance plans online normally qualify for a tax benefit as per section 80 under the Income Tax Act, 1961. So, you end up saving money in the long run.
It’s easy to avail the best term insurance plan online and the cost of buying the plan gets reduced further because it cuts down the distribution and operational costs, and you don’t need to pay commission to agents.
Summing Up
Ensure that you do a thorough study of term insurance providers and their products before zeroing-in on a plan for your family’s financial security needs. Set a budget upon consultation with your insurance advisor but keep in mind that the amount of cover should be substantial enough to provide significant financial assistance to your dependents. Get in touch with an insurance comparison portal like Coverfox.com and request for the best term plan insurance quote today!
