We are living in the most uncertain times where a global pandemic surrounds us. Today, more than ever, it has become crucial to be prepared for the worst-case scenario. Buying an online term plan can help you secure your family’s future in case if a misfortune.
An online term plan’s primary purpose is to create financial support to replace your earnings when you are no longer around. In the case of your sudden demise, the insurance company disburses a fixed amount to your family. The corpus makes things easier for your loved ones.
The online term plan has gained massive popularity over the past few years as it provides the most affordable coverage. Online term plans offer attractive premiums with high sum assured. You can also go through FAQ tax benefits for more profound knowledge about an online term plan.
However, every online term plan, as well as their riders, may not be suitable for everyone. You must be careful while choosing the best online term plan for your family. Before opting for an online term plan, it makes sense to ask some questions and compare the various policies offered by the insurance companies to determine which one to purchase.
Consider the below-mentioned points to buy the best online term plan:
Estimate the Required Cover
It is essential that you select an adequate coverage amount and avoid being over or underinsured. An online term plan is meant to provide for your family when you are no longer around.
Ideally, an online term plan must take care of the necessary expenditure that your family will incur. It includessignificant expenses like education/marriage of children and other liabilities/debts. If you avail an online term plan with an insufficient sum assured, then the entire purpose of securing your family is defeated.
If you buy an online term plan Rs. 50 Lakhs as its sum assured and think your family’s future will be secured, think again. In a few years, this amount might be as good as 20 lakhs considering the rate at which inflation is increasing. So make sure tofactor in the inflation rate when you choose the sum assured.
Go for Maximal Policy Duration
Preferably, an online term plan should cover you until you intend to work. Selecting a short tenure will end in a short period, and it maybe the time when you require a life cover the most.
Also, availing a new cover at later stages of life will be expensive, and insurance can also get denied if you have a severe health condition due to age. The best way is to pickan online term plan that provides you with the flexibility of choosinga tenure.
Choose between Online/OfflinePlan
Consider your options for availing aterm plan, online or offline.Nowadays, most people choose to buyan online term plan as they are comparatively economical to avail than buying through offline modes. Not only is an online term plan affordable, but you can buy them instantly in a few clicks.
Review Features of the Plan
Look for extensive features in an online term plan to match your requirement. The best online term plan should have an adequate sum assured and how you want to pay the premium annually or half-yearly. Also, check if the insurer can provide any additional benefits related to the policy maturity.
Consider Claim Settlement Ratio
The decisive moment in an insured persons life arrives when his family claims his insurance. Here is when your family gets the benefit of the premiums you paid. Hence, make sure to check the claim settlement ratio process of the insurer along with the terms and conditions for the same.
As there are many insurers for online term plan in the market, you must compare all the options available that are suitable to you the most and decide which is the best online term plan for you and your family. Apart from comparing the premium rates, also look into the features, benefits of the plan, and claim history.
The online term plan you choose should align with your long-term financial goals. Some which can be:
- To financially secure your family by ensuring enough financial coverage to meet regular needs in case of an eventuality
- Repayment of loans you may have taken, so your family is in not in a situation of struggle to make ends meet
- Protect the dreams of your children like marriage and higher education
Buying an online term plan is a long-term investment. You must be able to manage the premium amount. Determine how much you can commit to the policyand how much money can you keep aside on an annual basis for insurance purpose.
Don’t make commitments that could be difficult to fulfil later on as they will only prove to be a financial burden obstructing the many other responsibilities you need to complete.
While choosing the best online term plan, remember that premium rates are not the only factor to consider. It is always better to be adequately insured than being underinsured. Go for a reputable insurer that offers several benefits and has a good claim settlement ratio.