Buying a term insurance plan can be complicated. There are so many options to choose from. Comparing term plans online has become much easier nowadays. With clever tricks and tips, you can zero in on the correct term insurance plan that meets your needs and budget. You can follow this comprehensive guide on comparing term insurance plans online in India and make an informed decision.
Tip 1: Decide the Coverage You Need
The first step to finding the correct term plan online is determining the coverage you need. Factors like age, liabilities, income levels, and financial goals should guide the decision for your sum assured amount. A general rule of thumb is to opt for a life cover of 10-15 times your annual income.
For instance, if your annual earnings are ₹ 10 lakhs, you should look for a term plan cover of ₹1-1.5 crores. Ensure the amount is large enough to replace your income in an unfortunate event.
Tip 2: Compare Premium Rates Online
Next, compare the premium rates on insurance websites. Provide basic details like age, gender, smoking habits, and sum assured to get quotes. Then compare:
- Premium amounts for the same coverage with different insurers
- Claim settlement ratio showing the ability of the insurer to pay claims
- Policy term options such as 10, 20, 30, or 40 years
- Add-on features like critical illness riders
This will give you an idea of the prevailing online term plan rates and which offer better features.
Tip 3: Analyse Insurer Claim Settlement Records
While the premium amount is essential, the insurer’s ability to pay claims is more significant. After all, that is the real test of an insurance company. You should check IRDAI annual reports and insurer websites to compare company claim settlement ratios. You should opt for an insurer with higher settlement records. A high claim settlement ratio indicates financial stability.
Tip 4: Shortlist Plans That Best Meet Your Needs
Consider narrowing down on 2-3 term insurance plans that match your budget and requirements. The final step is to compare them in detail before purchasing. You can consider the following points:
- Coverage amount and premiums over the entire policy term
- Claims process and documents required
- Exclusions and waiting periods (if any)
- Policy renewal terms after term completion
- Customer service and transparency
Opting for the correct term plan is crucial to securing your family’s future. So, before locking in, invest the time to compare options online using the parameters above. This will help you pick a plan that offers comprehensive protection at affordable premiums.
Tip 5: Use Online Term Plan Calculators
Many insurance websites offer free online term plan calculators and illustration tools. You can use these tools to determine the ideal coverage, premiums, and payouts across different policy terms.
Tweak the inputs in the term plan calculator to match your age, lifestyle, and income levels. This can help you show a customised recommendation of the sum assured, policy tenure, and year-wise premium breakup. Online term insurance premium calculators offer a quick and straightforward way to identify the optimal term insurance plan.
Final Words
Knowing an insurance policy’s features, terms, and conditions can save you from misunderstandings later. Awareness of the crucial details can help you find a high life cover at a low premium for a specific tenure or ‘term.’ There are few better ways to safeguard your family’s financial security than a term insurance policy.
