Buying term insurance online is easier and hassle-free due to online resources. However, there are too many companies that provide too many options for term insurance policies. Selecting the best term insurance policy becomes confusing. It is important to compare the most crucial aspects, such as coverage, premium amount, claim settlement ratio, policy term, and add-on riders.
1. Policy Tenure and Coverage Amount
First, people need to compare the policy tenure and coverage amount of different term insurance policies. One should choose a policy that has flexible tenure. Also, the coverage amount should be adequate without being too expensive.
2. Affordability
Premiums to be paid depend on the age, time period, sum assured medical history, lifestyle habits such as smoking, and other underwriting factors. Also, premium charges sometimes differ among different insurance companies. It is important to compare the premium charges of various insurance companies through online tools.
One should always balance between cost and full protection. The most affordable policy may not always have the maximum benefits.
3. Claim Settlement Ratio (CSR)
The claim settlement ratio (CSR) is a key indicator of an insurer’s stability. It is the ratio of claims settled by the insurer to total claims received by the insurer within a period of one year.
A high CSR (above 95%) suggests that the insurer has a strong track record of settling claims. However, CSR should be evaluated along with other factors such as average claim settlement time and volume of claims. An individual can check an insurer’s CSR in the annual report published by the Insurance Regulatory and Development Authority of India (IRDAI) or official websites.
4. Add-On Riders
Different term insurance policies come with different add-ons or additional benefits. These can provide extra benefits that go beyond the basic term insurance policy. People should compare add-ons like critical illness riders, income benefit riders, premium waiver options, etc, before choosing any particular term insurance policy.
5. Read Policy Exclusions Carefully
Many policyholders do not observe exclusions, which stipulate circumstances where claims will be unpaid. Common exclusions are suicide within the first year of the policy, death due to illegal activities, and pre-existing diseases. Always know the terms of the policy to avoid surprises at claim settlement.
6. Online Comparison Tools
Websites and insurance aggregators allow to compare term insurance plans side by side. These websites simplify the process by showing key features, premium rates, and claim settlement records in one place.
7. Customer reviews
Before policy finalisation, please read customer feedback and reviews regarding the insurer company. One should consider aspects like the claim process, customer service, overall claim settlement rates, service quality, etc. It is also important to get a trustworthy insurance agent who goes beyond his or her personal interest to help the policyholder.
Choosing the best term insurance policy online requires careful comparison of premiums, coverage, CSR, and additional benefits. It is simple on digital platforms as it gives clear information and real-time comparisons. With online resources and proper reading of policy information, you can select a cost-effective, high-value term plan that gives financial security to your loved ones.
