Here’s your Ultimate Guide to Buying Term Plan Insurance
Planning for your future is something which you should not delay. As sad as it may be, but death is an eventuality which everyone has to deal with. Thus, it is important to have a protection plan for your loved ones. A term plan insurance can be an ideal option for you, as it provides financial support to your loved ones when you are not around.
A term plan insurance is very simple and uncomplicated protection plan for your loved ones. It is easy to understand too. The best term plan can offer financial protection to your family in case of your sudden demise.
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What Exactly is a Term Plan Insurance?
A term plan insurance is a life insurance product that offers financial coverage to the policyholder for a specific time period. In case of death of the policyholder during the policy term, the death benefit is provided by the insurance company to the beneficiary.
It is always essential to use term insurance compare, so that you can have an understanding of various term insurance plans available in market and find the best one as per your requirements. Term plans are easy to afford and provide large life cover at a lower premium when compared to a similar endowment plan.
Benefits of Investing in a Term Plan Insurance
There are various advantages of investing in the best term insurance plan. Here are the most important of them!
- Since it is more affordable, an individual can opt for a higher life cover for the same premium as other insurance plans.
- It is possible to enhance life cover during the critical stages of the policyholder’s life.
- The policyholder can also attach riders in the term plan. So, by opting for a critical illness rider, the policyholder is entitled to receive the sum assured on being diagnosed with the critical illness.
- The policyholder can avail tax benefits on premiums paid under Section 80C of the Income Tax Act, 1961.
How to Choose the Best Term Insurance Plan?
You can choose the best suitable term plan for you from the website of the insurance provider or through an insurance aggregator. You can also make comparisons of several products available with their features so that you make a wise choice as per your preferences.
If you are planning to buy a term plan insurance, follow the below mentioned steps.
Assess Your Requirements
The first step while buying a term plan is assessment of the coverage that you need. You can calculate the amount of coverage you think your loved ones will be comfortable with in the coming years. You can look for plans accordingly.
Choose the Insurance Provider Carefully
If you seek a term insurance plan, make sure that you buy it from an insurance provider who has the highest claim settlement ratio. This ratio signifies the percentage of claims that the insurance provider offers. You can also prefer the solvency ratio of the insurance company to determine their financial ability to meet requirements of customers.
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Use Term Insurance Calculator
Term insurance calculator can be used to compute the amount you are required to pay for your chosen sum assured. The calculators are available online and easy to use. By using the calculator, you can check if the amount of the premium fits into your budget.
A rider is a benefit which helps protect from such risks and can be attached to the basic policy on the payment of an additional premium. So, when you choose an insurer, consider one which provides you with multiple rider options. There are some common types of riders available, like accidental death rider, premium waiver rider, partial or permanent disability rider.
Steps to Buy a Term Plan Insurance Online
You can follow these steps below to purchase a term plan insurance online.
- Visit the official website of the insurance provider and fill in the details such as, gender, date of birth, contact details, etc.
- Enter the policy tenure and the sum assured. If you buy a term plan at an early age, the premium amount will be lower.
- Select the mode of insurance pay-out. You can either choose the lump sum pay-out or a regular income every month.
- After that, you will be required to fill a KYC form by entering your name, address and also upload your ID proof, income proof, and a recent photograph.
- You can make the payment online through credit or debit card or net banking. A soft copy will be provided to you by email and the hard copy will be posted to you on your address.
Comparing various plans and then buying a term plan insurance can save your loved ones from future adversities. There is no right age to buy a term insurance plan, whether you are 18 years of age or 65 years, a term plan will always help you to create a corpus to support your family financially.