Points to remember while you compare a term plan online

Thinking of buying a term plan online? Make sure you remember these points before you buy one already!

We very well understand the responsibility of protecting our family members in every way. Be it keeping them emotionally happy or helping them procure the basic necessities, we strive hard to keep them in a cheerful space no matter what. But have you ever thought about the time when you shall no longer be there to provide them a lifestyle they can’t afford? What will happen if tomorrow you die and there is no one to take care of your family? How will they survive without having your financial support? And that’s when the idea of having a term insurance plan strikes in and as you genuinely appreciate its role in helping you secure your family’s future.

As you know a term plan is a type of life insurance plan that provides you financial protection for a definite period of time. And in the unfortunate event of your death, your family is liable to receive your death benefit. To be precise, term insurance plans are specially designed to take care of your family’s financial needs in case of death or any uncertainty.

Term insurance plan is one of the most economical life insurance plan. The sum assured is high and the premium is very low which makes it one of the best life insurance plans in India. But as a consumer when you buy a product you need to understand the concept well as then only it can prove to be beneficial for your family’s future.

One thing that you need to keep in mind is that only paying the premium on time is of no importance as the kind of a term plan that you chose plays a vital role. Hence, you need to be very smart while buying a term plan and should always compare the term plans offered by various companies.

As comparing insurance policies online is easy and fast, here we give you a few quick tips which will help youcompare and chose the best term plan for yourself.

When you compare term plan online it’s important to consider the following factors before opting for the plan you are going to pay for.

Requirement: The first step towards comparing a policy online is choosing what exactly you want your term insurance plan to cover. Term insurance plans come with additional riders such as waiver of premium rider, permanent disability rider, critical illness rider, accidental death benefit rider and women critical illness rider. So first, it’s always wise to make a list of what exactly you want and then compare the policies accordingly.

Price: A term insurance policy at a cheaper price is better, but obviously you should opt for the one that would fetch you results in the long-term. Also, always look if the policies come with additional rider benefits. Never opt for a plan that you cannot pay for, so choose the plan which meets your budget.

Claim settlement ratio: Always check for the claim settlement ratio of a company. In simple words, claim settlement ratio defines the number of claims settled by the insurer out of all the claims received. This is one parameter that plays a vital role and helps you choose the best insurance company. So always opt for a company that has a high settlement ratio as higher the claim settlement ratio the better the insurance provider.

Time taken to settle a claim: Time plays an important role as you never know that what if after your death the insurance company doesn’t pay your nominee on time or takes too long to clear the process. Hence, to make it a swift process, online portals give you information about the average time taken by a company to settle the claims received. Time taken to settle a claim speaks a lot about the company and only then you can entrust them with the responsibility of providing the financial benefits to your family.

Financial status or strength of the company: The bigger the company better it is for you as they have the muscle to manage contingencies in a much faster way. This also seeps confidence in you and makes it clear as to from which company you would like to avail the policy from.

History of the company: Before you opt for a term plan by a particular company, always check the reviews of the product offerings from the company. A lot of websites review various insurance products and based on it, you can also have clarity if the insurer does adhere to the clauses mentioned in the policy documents.

Lastly, you do not need to worry much about anything as IRDA, the Insurance Regulatory and Development Authority of India ensure that the insurance companies meet all the prerequisites and maintain minimum standards of performance. So compare a term plan on the above parameters (without much worry) and ensure a safe and happy financial future for your family.

Author's Bio: 

Thinking of buying a term plan online then compare term plan online before you make a decision. Snehal recommends everybody to look out to consider the following factors before opting for the plan you are going to pay for and ensure a safe and happy financial future for your family.