As the number of unexpected diseases and events surge, it is imperative to have your family financially covered. Despite disciplined savings, it is preferable to invest in an appropriate life insurance product, such as an online term insurance plan. It provides financial protection to your family/beneficiaries in case of your untimely demise.
Besides, if you opt for add-on benefits, you can have broader coverage. This would also include coverage against death or partial disability due to critical illness, usually not covered under a basic term insurance plan.
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Let’s discuss a few features and benefits of a term insurance plan.
1. High Sum Assured at Affordable Premium
Term insurance is a form of life insurance that is quite reasonable as compared to other life insurance products. Depending on your financial capacity, you can choose the sum assured and the tenure.
If you start investing at a young age, you can benefit from the low premium rates. With your increasing age, the premium amount might also increase. Therefore, it is advisable to apply for online term insurance as soon as you can.
2. Easy to Understand
Being a first-time online term insurance buyer, it might be quite difficult for you to comprehend complicated insurance plans and terms. Nonetheless, you can cover yourself under an online term plan. It is easy to understand as it does not require in-depth investment knowledge. You just need to know a few basic things before applying for the same.
3. Debt Repayment
In case of your untimely demise, you might leave behind debt or unpaid loan instalments, which might be difficult for your family to repay in your absence. But, if you are covered under a term plan, your family will get a lump sum amount in such a case. They can use this amount for any purpose, like, debt repayment, incurring household expenditure, etc.
4. Additional Riders to Strengthen Your Policy
Usually, a basic term insurance plan has certain terms and conditions. It might not cover death caused by pre-existing disease or accident. Therefore, to widen your coverage, you can add riders to your basic online term insurance plan. There are various types of riders available; find them below:
- Comprehensive Accident Benefit Rider
- Waiver of Premium Plus Rider
- Partner Care Rider
- Critical Illness Rider
5. Income Tax Benefits
Investing in online term insurance is a win-win investment, as you get tax benefits on the premium amount along with the death benefits. Under Section 80C of the Income Tax Act, 1961, you can save tax on your premium payments of upto Rs1.50 Lakh.
A Simple Step-By-Step Process to Choose an Online Term Insurance Plan
As a first-time online term insurance buyer, it is advisable to follow a simple process, so that you can choose the most appropriate term insurance plan.
1. Assess Your Needs
Depending on your liabilities and regular household expenditure, evaluate an approximate amount that your family would need to live a standard life in your absence. In case you are the sole breadwinner of the family, it is even more important to make precise calculations so that your family doesn’t have to suffer during such times. After making these calculations, you can choose adequate coverage.
2. Determine Your Tenure
After evaluating the coverage you would require, it is essential to decide for how long would you need it. If the tenure you choose is too short, the policy might lapse before your financial obligations are completed. On the other hand, if it is too long, your premium amount might go too high. Therefore, it is essential to select the tenure appropriately.
3. Choose Your Add On Benefits Wisely
To widen your basic term insurance plan’s coverage, it is important to choose the riders appropriately. You can add a number of riders so that you don’t have to worry about finances during such critical situations. Essentially, strike a perfect balance between your budget and the coverage you require.
4. Claim Settlement Ratio (CSR)
The CSR depicts the total number of claims that an insurance provider has settled against the number of claims filed. The higher the claim settlement ratio, the more credible is the insurer.
Therefore, before applying for an online term insurance plan, it is essential to check an insurance provider’s claim settlement ratio. Every year, the Insurance Regulatory and Development Authority of India releases the claim settlement ratios of most insurance providers.
5. Know About the Service Provider
After you have performed all the steps mentioned above, it is essential to know about your insurance provider before you finally invest your money. You should thoroughly go through their profile, policy specifications, inclusions and exclusions, the claim settlement ratio for the last couple of years, customer reviews, etc. This will give you a fair idea about the credibility of the insurance provider.
Bottomline
Come what may, finance is the primary requirement to fight challenging situations. And, signing up for online term insurance is one of the top requirements to keep yourself and your family financially secured and to be relieved of the financial burden during challenging times.
It is important to choose your insurance provider carefully, so that you can be worry-free about the claim settlement if anything unfortunate happens. You can consider the max life term plan, as it is one of the flexible and reliable term insurance options with favourable terms and conditions. You can conveniently apply for it online, and if you face any difficulties throughout the process, you can contact a customer care executive.
