How to select the best term insurance plan with simple steps?
A term life insurance policy is a pure protection plan which secures your family financially in your absence. It gives you peace of mind that after you are gone, there will be financial assistance to take care of their needs. Therefore, while purchasing a term life insurance policy, you should do thorough research on what you want and compare various policies in term of features, benefits offer, the sum assured, flexibility options and last but not the least premiums.
However, with the availability of ample options for term plan online, choosing the best term insurance plan becomes quite tricky. Though there are online tools like insurance calculators to help you in the process of selecting the right term plan, but you also need to know the correct procedure to make the right buying decision. So here are simplified steps that will assist you with purchasing the best term insurance plan effortlessly.
Analyse available term plan options
When purchasing a term plan online, you need to compare the features and benefits offered by different term life insurance policies such as the coverage amount, risk covered, premium amount amongst others. You can get access to this data with a click from various insurance aggregator portals like BimaKaro.in. Once you found an ideal term life insurance policy, you can use the term premium calculator to assess the mentioned quote and see if it is feasible for you in the long run as term policies usually have long tenures. The idea behind comparing the policies is to find the most affordable one, which at the same time provides sufficient financial protection to your family.
Search for a Plan with Minimum Premium Rate
The term insurance premium calculator ascertains the premium after evaluating your present age, income, and health status. The premiums will be on the lower side if your age is less. Therefore, while calculating the insurance coverage amount, you should also carefully opt for the premium amount which you can afford for the entire duration of the policy.
Assess the flexibility option of the policy
An ideal term life insurance policy is the one that is adaptable enough to meet your objectives at different phases of life. For instance, the present sum assured that you have chosen might not remain sufficient in future with your growing responsibilities. So you should make sure that you opt for an insurance policy that allows you to renew your policy term, premiums along with incorporate your life partner or even lets you expand the insurance coverage whenever required like when you have kids. You can use the online insurance calculator to recalculate the premium while looking to increase the insurance coverage.
Look into the Claim Settlement Ratio
When you use the term insurance calculator and finds that a term policy is available at strangely low premiums, then you must be alert. And at this time, you should do another significant check, that is Claim Settlement Ratio. If you have shortlisted the policy but not sure about the insurance provider, then you must check the claim settlement ratio. It depicts the insurer’s credibility as well as market reputation. The ratio above 90 percent shows that the insurance company has
- Superb standards of customer service
- High data precision to the clients
- Robust financial creditworthiness
- Provides seamless claim settlement process
To know the claim settlement ratio of an insurer, you can check the list shared by the Insurance Regulatory and Development Authority of India (IRDAI) and make the right buying decision.
Thoroughly comprehend your policy
Once you have decided on the plan to buy, you should completely understand its clauses that include:
- The inclusions and exclusions of the policy
- Components that increase or decrease the cost of the premium
- Rating of the insurance provider
- Would you be able to change the nominee of the policy?
Ease of paying premiums
While investing in term life insurance policy, do consider the ease of making payments. As you select the best term insurance plan with the right sum assured and insurer, now you need to pay for the policy. There are multiple payment options available, and hence you should choose the ideal one as per your convenience such as annually, half-yearly, quarterly, or monthly. You can also pay the premium through various payment modes like using a debit card or credit card, UPI, NEFT, IMPS or net banking.
Do remember all these steps while buying a term plan online. You should carefully examine and assess the term insurance plan that you plan to buy. You can visit BimaKaro.in, compare various policies and buy the best term insurance plan for yourself and your family.