A term insurance plan is as it is the most affordable life insurance product available in the market.
Ideally, the objective of investing in a term plan is to protect your loved ones financially in your absence. But, insurers in India offer rider benefits on term insurance plans to enhance its scope. This, in turn, increases the basic premium amount as well.
So, to ensure that you are choosing the right term insurance plan for yourself at an affordable rate, there are a few things that you need to keep in mind. These are as follows –
- Choosing a sufficient sum assured amount
The sum assured amount is what your beneficiaries will receive as the death benefit. So, it is necessary to select a sum assured amount that is sufficient to take care of your family’s expenses in your absence.
Term insurance plans in India provide a high sum assured at a nominal premium rate. You can use the term plan calculator to determine the payable premium amount on your chosen coverage. In fact, you can compare term insurance premiums of several insurers and then narrow down your options based on your affordability.
- Compare different term insurance plans
Apart from comparing the term insurance premiums, there are a few other aspects that you should consider comparing as well. These include the coverage of the policy, exclusions, claim settlement process, rider benefits, etc.
By comparing these factors, you will gain insights on the product that will encourage you to choose the right policy. There are multiple comparison tools available online to help you compare different term plans offered by different insurers.
- Select term plans that align with your financial objectives
Before you buy a term plan in India, it is necessary that you evaluate these parameters as well. Ask the following questions to yourself and answer honestly –
- What is your current financial situation?
- What are your monthly expenses?
- What are your future financial objectives?
Once you are aware of what your future objectives are, you will be able to choose a term plan that will help you accomplish them.
- Buy term insurance online
We live in the Internet era. Anything we want is easily available online, even insurance and investment products. Insurers in India offer term plans online on their website. The process of buying term insurance online is very simple and secure. All you have to do is follow the steps given below –
- Visit the insurer’s website and go to the term insurance section
- Select the type of term insurance plan you need
- Select the coverage you think will be sufficient to cover your family in your absence
- Use the term insurance calculator to determine the premiums before finalising the plan
- Choose rider benefits (if necessary)
- Pay the term insurance premium online
- The insurer will assess your application and issue you to the policy in no time
Buying term insurance plans online eliminates the need to go to an agent to help you with your application. Further, it eliminates the commission charged by the agent which ideally is clubbed in your term insurance premiums.
Over to You
Keeping the things mentioned above in mind will help you choose a term insurance plan that not only fulfils your financial needs but is also cheap on your pocket at the same time.