How to Choose the Right Term Insurance Plan for You?

The life insurance industry offers many options to individuals. The discerning individual is particularly interested in term insurance plans, so how does he choose the right term insurance plan?

Selecting the right term insurance plan involves focusing on the key features that can make a difference to you and your dependents.

We have shortlisted some of the more important features for you:

1.       Human life value

The main reason for taking life insurance is to offer financial cover to your dependents in your absence. They expect the insurance policy to provide financial cover to the dependents in their absence. That is why they must make sure the life insurance cover is adequate. Or like they call it in insurance – the insurance must cover the individual’s human life value (HLV).

Simply put, the HLV is the individual’s income / salary plus liabilities like loans. This forms the basis for the life insurance cover and the right plan for the individual is the one which provides for at least the HLV.

2.       Cost

We have all heard that term plan is the cheapest. But that does not mean they can’t get cheaper. Go for term plans with the lowest expenses since this translates into lower premiums for the same cover. Also give preference to insurance companies that offer discounted premium rates – like for instance to non-smokers.

3.       Riders

The best term life insurance plan for you is the one that has all the angles covered. One way to achieve this is through riders. What is a rider? A rider is an add-on to the primary policy, which offers benefits over and above the policy subject to certain conditions. The policyholder can attach riders to the term plan. So if let’s say there is a critical illness rider, he is entitled to receive the sum assured on being diagnosed with the critical illness. .This is in addition to the death benefit of an equal amount on death over the term of the policy. Likewise there are other riders like disability cover, loss of employment cover, waiver of premium cover, among others. The policyholder should select riders based on individual and family needs since they can add considerable value to the life cover.

4.       Enhanced cover

A feature offered by term plans of certain insurers is the flexibility to enhance the life cover during critical stages of the policyholder’s life. For instance, an insurer may allow policyholders to enhance the life cover by 50% at the time of marriage and by 25% at the time of turning a parent. This allows policyholders to start with a modest cover and enhance cover as responsibilities increase as also their ability to pay higher premium.

5.       Convenience

Across the gamut of life insurance plans, one finds term life insurance seeing the maximum innovation. For one, costs and by extension premium rates have been reduced considerably and this process is on. Buying a term plan has been made easier thanks to the internet. It is now possible for a healthy individual, as defined by the insurer, to buy a term plan on the company’s website without taking a medical test.

Which Term Insurance Plans You Should Prefer

Issues related to buying online term insurance can be resolved easily if person knows his actual requirements and how to address them with correct products. There are 24 life insurance available in the market and provide more than thousand plans across segments such as endowment, term life, child plan, money back, ULIP and annuities and so on.

These policies are available with a wide range of riders and other options. As a customer, if you really want to make sense out of all your requirements, then you must know three things which are mentioned below:

·         Your needs

·         Coverage period

·         Process of buying

Instead of focusing on their sales speech, know your two fundamental risks in life.

·         Early demise

·         Living too long

If you die at young age, you leave your family without sufficient financial support. On the other hand, second scenario leaves you with inadequate financial support in your old age. It is advisable to consider the impacts of these two risks.

If your family is dependent on your income, then you have to make sure that your loved ones continue to enjoy the same standard of living in case your income is no longer available to them. In this scenario, buying online term insurance plan is a smart move as this policy pays the beneficiary an insurance amount equal to the sum insured in the event of policyholder’s demise.

Generally, customers require that fund to be equal to their salaries. Usually, it has been observed that people insure themselves up to the age of anticipated retirement. Buyers can purchase life insurance online or from an agent.

The product cost is fixed, so just do online term insurance to get the best deal. Mention all information correctly in the application form to avoid claim rejection.

In India, life expectancy is below 70 years of age and majority of people have sufficient retirement savings which will be enough for few years post-retirement. But, what if you live more than that age? Today, employers are not offering guaranteed lifelong pension and hence, will depend on their children for financial support. To avoid such situation, start thinking about how to handle these risks.

Annuity is a completely different concept and to buy it, customers have to pay lump sum money. In return, insurance companies in India pay a guaranteed monthly income to policyholder until your partner is alive. But, do not invest your complete retirement savings into annuities.

Source: http://www.policyboss.com/blog/term-insurance/which-term-insurance-plans-you-should-prefer

Your Complete Guide to Buying an Online Term Insurance Plan

With the internet becoming a routine of our life, the number of net-savvy insurance buyers is gradually increasing. Non-life insurance products such as personal accident, health, motor and travel have fuelled the growth of online insurance products. Now, while a similar trend is yet to gain substantial momentum in life insurance, online term plans have been in particular gaining popularity. As per the statistics, one online term plan is bought every 5 minutes in India! The online quote systems and price comparisons on portals like trucompare facilitate the insurance buyers to buy a term plan easily and as best suited to their needs.

Aegon Religare was the first insurance provider to introduce an online term insurance plan called ‘i-Term’. Today, almost every insurance company from LIC to Max Life insurance offer online term plans.

Now, if you are wondering if you should buy an online term plan, how safe it is compared to an offline version and what is the process, here is a complete guide to simplify your decision.

Reasons to Buy

1.       Convenient and Quick: One click, anywhere and anytime buying – that’s what an online term insurance plan is about.

You can do term plan comparison – browse, research and compare the quotes, features and benefits of the online term plans instantly across the websites of different insurance providers.

You really don’t have to contact or follow up with any insurance advisor(s) or fear misselling of any kind.

You can scan and submit the KYC documents.

You can pay premiums by choosing any of the multiple payment methods available – credit card, debit card, net banking and even IVR (Interactive Voice Response).

The policy is processed and issued quickly, so your life cover does not get delayed much.

You can renew the policy online as and when the premium due or if it lapses.

2.       Cheaper Cost: The premium of online term insurance plans is about 30 – 40% cheaper than the offline plans. There is a misconception pertaining to economical cost of online term plans, though. Most customers believe that lower the premium, the higher is the probability of a claim rejection or that there is some catch. Well, that’s not true. There are several reasons why online term plans are more affordable. First, there is no agent commission or channel sales cost involved in the pricing. Second, insurers consider an online customer a low-risk profile – he is educated, earns well and prefers to take a life cover. Third, since an online transaction is paperless, the processing and administration cost also comes down significantly for the insurer.

Transparent Process: One of the major problems that an offline insurance buyer faces is transparency – right from meeting(s) with the advisor to filling up the form. You usually rely on the advisor’s advice to understand the key offerings of the plan. There are also chances that your personal details could be misspelled or mentioned incorrectly in the physical form. Whereas, in an online plan, you would be doing all the formalities on your own. You have all the information at hand to make a sound decision. There is a step-by-step procedure to guide you, so the error rate is considerably low.

Drawbacks

Lack of Human Touch: If you are someone who prefers the face-to-face support and advice for before (buying) and after (premium payment reminders, claim settlement, etc.) insurance, you may not be comfortable buying an online policy. However, you must also note that the most advisors do not stay for long with one single insurance company. So, if you think that the advisor who sold you policy will stay with you till the end of the policy term (unless he is someone who you know personally), you are mistaken! The good side is that you really don’t need an advisor’s help to buy an online term plan for the reasons stated above. These days, insurance companies send automated text and email status updates / reminders for your policy. And to ensure that the claim settlement procedure is hassle free for the nominee(s), it is advisable to choose a reputed insurer with the best claim payout ratio.

Insurance Lexicon: While applying for an online term plan, you may not understand the insurance wordings on the website. You may have to either dig up more information from the internet to comprehend their meaning or rely on the insurance provider’s customer support service.

Choosing the Right Online Term Plan

Now that you have decided to buy an online term insurance, the question is how to choose the right one. We have already written a detailed post on this earlier. Read here to know more.

Process

The process of buying an online term plan differs from one insurance company to another. However, the submission of personal details and KYC documentation remain same. As far as medical tests are concerned, you may have to undergo the same if the insurance provider deems necessary.

We will take examples of two insurance companies – Max Life Insurance and Bajaj Life to explain the process of online purchase of term policies.

Buying Tips

Buying online term plans is reliable and safe as long as you chose the right insurer and the right plan. But, you should also keep a few important points in mind to ensure smooth processing of your application and effortless claim settlement process for the nominee(s).

Understand the plan If required, consult your family, friends or an expert. You must also do term plan comparisons to make the right decision.

If you are using a comparison site to seek information, you should verify the information for its relevance and freshness.

Read all terms and conditions on the website carefully, especially the ones in the fine print.

Do remember that most claim rejections result from non-disclosure, incorrect or misleading information. In order to ensure that the nominee(s) does not face any problem in the event of a claim, a precaution at your end while buying a plan is of the utmost importance. You must be honest about your disclosures. For example, you should mention your smoking or drinking habit. Or, if you have any previous life cover, that should be too declared. You may have to pay a higher premium, but it is worth your peace of mind.

The browser page address line should show a secured connection. That is, it should start with ‘https’ instead of ‘http’.

Before making a payment, ensure that the website has Secure Sockets Layer (SSL) certificate so that your transactions are safe and secure.

Save the acknowledgement or reference number of the transaction, whether it was successful or unsuccessful. Ideally, keep a screenshot of the transaction page. This will act as a record till you receive the policy document by courier.

Remember, that you are buying a term insurance plan for the financial security of your family. Online term plans are convenient and cheaper to buy. But, these alone should not be the decisive criteria. Choose an online term plan which meets your financial goals and gives you peace of mind.

Source: http://trucompare.in/blog/your-complete-guide-to-buying-an-online-term-insurance-plan/

Term Insurance

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Why To Worry About Term Insurance?

The greatest gift Adam got from god was “Life”. Life is a divine journey which drives our being. Trudging along the path of joy and worry, through smiles and tears, triumph of victory to silence of failure, all collectively constituent towards this beautiful journey called life. Indeed we all spend our whole lives trying to fetch great things for our loved ones, Setting up impersonal goals and professional excellence is something which tops our priority list. Modern times have challenged human existence with quite many challenges when it comes to health, hazards, and accidents and so on. Human life expectancy has fallen drastically over the years and millions of people tend to die every year due to illness, accidents and other fatal events. Doesn’t it all make us think? Don’t we think what will happen to our family after we die? Indeed this thought sends chills down our spine bringing a fringed worry below our high tousle.

 It’s better to act than to worry. Invest at the right time to have desired returns. Investing in profitable insurance term policy can be the most fruitful investment in terms of futuristic approach. Term plans are investments domains which help in securing future of your family even if something happens to you. Many insurance providers devise insurance policies with a aim to reach out people who want to secure the future of their loved ones in-case something happens to them.

With the rapid increase in disease and fatal health worries, people tend to worry about the financial security of their loved ones after their deaths. Term insurances assures for beneficial returns for your investments when your family needs it the most. Term insurance plans are investments in which your investments are taken in terms of premiums which you pay on an agreed upon time span, monthly, bi-annually or yearly. These premiums are to be paid till the policy time span lasts and in order to avail benefits of the coverage; the insured should pass away during the fixed age of the policy. To avoid fortification, premiums must be paid on time along with no breach of terms and policies. Various insurance providers give different term insurance plans to meet the preferences of the niche audience.  The cost of the insurance is also dependent on factors such as age, profession, financial and health condition.

Source: http://www.policyx.com/blogs/why-to-worry-about-term-insurance/

Top 7 Best Online Term Insurance Plans in India

Life is full of ifs and buts. None of us knows what might happen even the next minute. If your child, life partner or your parent(s) depend on your income then you need to have Life Insurance plan.

In this post, let us shortlist and understand some of the best Online Term Insurance Plans in India. These best Term Life Insurance plans can be purchased through online.

What is “Term Life Insurance Plan?”

Term insurance is the simplest and most fundamental insurance product. Term insurance plans are designed to ensure that in the event of the policyholder’s death, the family gets the sum assured (the cover amount). Term plan provides risk coverage for a certain period of time (policy term/duration). If the insured dies during the time period specified in the policy and the policy is active – or in force – then a death benefit will be paid. It is the cheapest form of Life insurance in terms of premium.

Online Term insurance Plans are,

Cheaper than conventional plans like money back life insurance or endowment plans (or) offline term plans. Online term plan insurance is roughly 30-40% cheaper than the offline plans.

The entire application submission process happens online through the company’s website. So, it is hassle free.

You may not be influenced by an agent/advisor during the buying process.

7 Best online Term Insurance Plans in India for 2015               

·         I have selected and shortlisted the below best plans based on;

·         Claim Settlement Record of the Life Insurance Companies as per IRDA’s (Insurance Regulatory Development Authority of India) latest Claim/Death Settlement Ratios (2014-2015)

·         Affordability (Premium amount).

·         Brand name.

·         Quality of service provided to its customers during the online buying process and after issuing the policy (policy life).

·         Ease of buying the Term Life Insurance plan online.

·         Feedback received from my friends/clients who bought online Term Life Insurance plans directly.

Source:  http://www.planmoneytax.com/best-online-term-plans-comparison/

Your Complete Guide to Buying an Online Term Insurance Plan

With the internet becoming a routine of our life, the number of net-savvy insurance buyers is gradually increasing. Non-life insurance products such as personal accident, health, motor and travel have fuelled the growth of online insurance products. Now, while a similar trend is yet to gain substantial momentum in life insurance, online term plans have been in particular gaining popularity. As per the statistics, one online term plan is bought every 5 minutes in India! The online quote systems and price comparisons on portals like trucompare facilitate the insurance buyers to buy a term plan easily and as best suited to their needs.

Aegon Religare was the first insurance provider to introduce an online term insurance plan called ‘i-Term’. Today, almost every insurance company from LIC to a bajajallianz insurance offer online term plans.

Now, if you are wondering if you should buy an online term plan, how safe it is compared to an offline version and what is the process, here is a complete guide to simplify your decision.

Reasons to Buy

1.      Convenient and Quick: One click, anywhere and anytime buying – that’s what an online term insurance plan is about.

You can do term plan comparison – browse, research and compare the quotes, features and benefits of the online term plans instantly across the websites of different insurance providers.

You really don’t have to contact or follow up with any insurance advisor(s) or fear misselling of any kind.

You can scan and submit the KYC documents.

You can pay premiums by choosing any of the multiple payment methods available – credit card, debit card, net banking and even IVR (Interactive Voice Response).

The policy is processed and issued quickly, so your life cover does not get delayed much.

You can renew the policy online as and when the premium due or if it lapses.

2.      Cheaper Cost: The premium of online term insurance plans is about 30 – 40% cheaper than the offline plans. There is a misconception pertaining to economical cost of online term plans, though. Most customers believe that lower the premium, the higher is the probability of a claim rejection or that there is some catch. Well, that’s not true. There are several reasons why online term insurance  are more affordable. First, there is no agent commission or channel sales cost involved in the pricing. Second, insurers consider an online customer a low-risk profile – he is educated, earns well and prefers to take a life cover. Third, since an online transaction is paperless, the processing and administration cost also comes down significantly for the insurer.

3.      Transparent Process: One of the major problems that an offline insurance buyer faces is transparency – right from meeting(s) with the advisor to filling up the form. You usually rely on the advisor’s advice to understand the key offerings of the plan. There are also chances that your personal details could be misspelled or mentioned incorrectly in the physical form. Whereas, in an online plan, you would be doing all the formalities on your own. You have all the information at hand to make a sound decision. There is a step-by-step procedure to guide you, so the error rate is considerably low. 

Source: http://trucompare.in/blog/your-complete-guide-to-buying-an-online-term-insurance-plan/

Does cheapest online term insurance policy available for all?

People are becoming financially literate and now understand the need of having a term insurance plan. Online term insurance plans have become more attractive as their prices have fallen by 40-50% due to demand from consumers and rise in competition among insurance companies.

You can either buy an online term insurance policy from insurer’s website or from online comparison sites (web aggregators).

But biggest question is that on which factors your decision should be based on, whether you should go for the cheapest term insurance plan or with the insurance company having highest claim settlement ratio.

The term insurance policies are similar despite the attempts to create features such as deferment of policy proceeds (periodic payments instead of lump sum payment) or some riders that provides for additional covers on payments of additional premiums.

In recent times, almost every large insurer has a comparable claim rejection ratio. Besides, new amendment to Insurance Act, life insurance companies cannot reject any claim after three years on any grounds. And if you are making full and complete disclosures in your proposal form, insurer can’t reject even early claim. So, low claim rejection ratio as a parameter is for choosing an insurance company is no longer very relevant.

Some insurers have dropped their premiums very low but now have very tough norm for those who will be eligible for these premiums. So, the cheapest Term Insurance Plans is not necessarily available for you.

In most cases, customers would actually end up paying higher than the standard premiums so the lowest published premiums are just illusory. After medical test, customers are asked to pay higher premiums for issuing policy or their proposals are rejected.

If you refuse to pay additional premiums then you have to go through the whole proposal and medical examination again and have to disclose the fact that his proposal was rejected in the past.

Rejection of proposals will further increase as insurers have become extra careful in issuing life insurance policies because of recent amendments that disallow rejection of claims on any ground after three years of policy issuance.

This problem is more acute in the critical illness policies where outright rejections are wide spread and where it is even more of a challenge to motivate the consumer to persist with the process of getting this policy.

No data is available on the proposal rejection percentages or the percentage of proposals in which a particular insurance company has proposed an increase in premium over and above the normal premium. Hence, there is a need that Insurance Regulatory and Development Authority of India (IrdaI) should collect and disseminate this kind of data so that consumers can make an objective decision on their insurance provider.

Till then, consumers can look forward for online web aggregators as they make money on actual issuance of the policy and they will work harder for a company that is actually interested in issuing policies.

Source : https://www.policymantra.com/blog/does-cheapest-online-term-insurance-policy-available-for-all/

Best Term Insurance Plan in India

What is Term Insurance?

Term insurance is the cheapest and simplest form of life insurance, where you pay a fixed premium every year and you get a life cover for a specified sum assured for a specified period. The sum assured is paid (to the nominee) only at the occurrence of the event (death of the life insured); the policy has no survival benefits.

Term life insurance policies are also called ‘pure-risk policies’ and ‘pure life policies’; they have no savings or investment element in them; the premium includes only the cost of buying the life cover.

Why is Term life insurance recommended?

There are many advantages of including a term cover in your insurance portfolio

They offer the least-cost insurance cover;

As with any life insurance policy, the annual premium paid towards a term plan qualifies for tax deduction of up to Rs 1 lakh premium paid (per annum) under section 80C of the Income Tax Act;

When you are going for a house and/or auto loan, you are essentially considering taking on greater risk. Taking a term life policy that closely matches the amount and tenure of the loan will financially protect the dependants in the event of an individual’s untimely death.

What are the options available in the market?

There are a wide range of insurance products on offer today. However, as discussed above, term insurance plans  are pure risk covers and therefore, there is little to pick between the different policies available in the market.

What plan suits whom?

While term insurance is suitable for everyone, it is ideal for those who are looking for a low cost life cover. It also works well for an individual for whom life insurance cover is a must but is not being able to afford a high premium.

What should a buyer be aware of and how to buy?

The buyer must be aware of the extent of cover he/she wants, the number of years for which you want it, and the least amount of premium available in the market. Awareness of your needs and the life stage you currently are in will help you zero in on the perfect policy.

Number of years for which you want life cover – Generally, as one approaches retirement, one’s financial responsibilities (towards family) tends to decline. Therefore, the term of a life cover should be determined by how many years you have until retirement.

Other important tips

An insurer may also consider your specific requirements (such as, addition of accidental death benefit, critical illness riders to the policy you need, a longer term period), usually for a higher premium;

Cost is not always the only parameter of comparison; customer service offered by the insurer with regard to processing of insurance application, claims process and settlement are equally important. Although one cannot compare this implicit parameter, we can try to get feedback about the same through word of mouth, friends’ network, insurance blogs, etc.

It is recommended to go for a policy with ‘with-revival option’. Usually, revival of a lapsed policy (due to non-payment of premiums) is allowed within a period of 5 years from the date of the first unpaid premium (subject to certain conditions). [The insurer reserves the right to revive a discontinued policy].

If you are looking for an indefinite life cover, you may consider a whole life policy instead of a term life policy, as the latter has a fixed term.

Source : http://www.investmentyogi.com/best-term-insurance-policies/

Long Term Care - Its Coming are you Ready?

Term Insurance - Which term insurance plans you should prefer

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Term Insurance - Which term insurance plans you should prefer

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Factors to consider while buying Term Insurance

Where would you head if your priority was low Risk and low premium? The first response would naturally be Term insurance. Buying term plan is a relatively easy proposition. However, there are tricks to every trade – and these are the basic factors that you would need to consider when you make your purchase decision.

• Are you adequately covered? It is so easy to buy accessible instruments such as online insurance these days that the level of cover could be overlooked. It is essential that you conduct reality checks to see if your level of cover is sufficient, considering your personal and financial circumstances.
• What’s the duration of your insurance cover? The last thing you would want to happen is to see that your insurance Premium of a lifetime does not come in handy just when you need it – that’s why, it is important to decide on the tenure of your term insurance, making sure it is valid to see you through your old age, and you buy it on time. 
• Brand value does matter. If you thought brand was all about advertising and make-believe, you may want to think again – reputation to pay clients and settle claims is all that matters when it comes to the “moment of truth”.

The rupee does not appreciate – and that’s called inflation. And the way Inflation could affect your plans is in terms of the value of your Best Term Insurance Plan as well as through the insurance premium that you pay towards it. When you calculate the amount that you would want to insure, do consider the effect that inflation could have on your decision.

• Have you considered online insurance? It’s not just because it is easier for you to buy online, but also due to the fact that you could be shelling out much less than what you would if you were to buy the traditional way. And yes, with online insurance, you would also have the luxury of comparing insurance options available to you within your budget and for your circumstances, before you actually make the decision.
• What’s your cover? That’s the key in term insurance. When you remember this is for a fixed term and that you are doing it with a purpose, you would focus more on cover and less on the investment part of it. Needless to say, this would turn out to be a wise decision when you make the most of your insurance premium through maximizing the coverage. 

As you could see, with facilities such as online insurance available at the click of the mouse, you would be better empowered in choosing a product of your choice, precisely tailored to suit your needs. 

[Source: http://www.easypolicy.com/KnowInsurance-A/Factors-to-consider-while-buying-term-insurance]

Term Plan: Buying early gives you the benefit of lower premiums

We all know it is essential to buy Term plan. But it is not just a matter of buying – it is also that of deciding what the best time is to buy one considering the costs and benefits involved. Is it too early or too late to buy? Would I be saving more or less if I decide to postpone my decision?

Here is a briefing on timing to buy term insurance, in consideration of factors such as cost, inflation, risk, and of course, tax benefit.

• Does insurance cost more with time? There can be no standard way of telling how much your Premium would be when you decide to purchase. However, you could be sure of the fact that the later you buy, the more costly it would be. And the reasons have definitely to do with Inflation and risks.
• What role does inflation play? In simple terms, you could expect the rupee to lose its value with time, irrespective of how much it pares against the dollar. An ounce of product A would cost more ten years down the line in all likelihood, than what it costs now. Of course, you could expect your salary to rise as well – unfortunately, while there is no sure way of knowing what your salary would be in the future, you could vouch for the fact that costs would have rocketed up. If you could find a way for your salary to match the rising costs, count yourself lucky.
• What are the risks involved? If you buy Term Insurance early in your career, you would be in the low-risk bracket, and would hence have lesser premium to pay. To the contrary, if you were to find yourself in the high-risk group because of time and age, and if you decided one fine day to buy insurance, you could be sure that the insurance companies would welcome you, but only with a higher price tag.
• So, what about tax benefits? Your savings on your term plan would come from lower costs associated with premiums, as well as lower taxes that you pay on account of provisions associated with income tax. Considering that money is only likely to lose its value with time, money saved today means much more than money that you would save later. And you may as well want to make use of legal provisions today, than speculate on what they could be years later when you make a buying decision.

So, if you are looking for tax benefits through term insurance, now is the time. 

[Source: http://www.easypolicy.com/KnowInsurance-A/Term-Plan--Buying-early-gives-you-the-benefit-of-lower-premiums]

Need of Term Insurance & Its Early Planning

Securing the best for families is a human trait. It will not be wrong if I said that every person who loves his family want to secure its future as well. Nowadays, we are surrounded by uncertainties, which are present in every corner of our life. Hence, it has become absolutely essential to secure family future and their needs. More so, if you are the single earner in your family, then in the scenario of an accident, disability or death, have you ever thought that what will happen to your family and who will take care of their needs if you are not there. Apart from emotional support, they would require a financial support as well to take care of the situation.

This is where a term plan comes into relevance. Here are some of the reasons for you to opt for a term insurance plan to safeguard you and your family’s future.

Delay Is Not Good

If you have already planned for buying a term insurance plan but putting off the decision for some reason or the other, then it’s time for you to get going. You must be aware that the savings which you hold in your bank account would not be enough for your family to bear the loss of your death. With this saving, they would be unable to meet the basic requirements let alone additional expenses. Hence, it is better to use those savings in a smart way and a term plan is the best way to go about it.

Term plan-cost effective

You might not be aware, but a few years back, buying a term insurance plan was very expensive. It used to costs around Rs. 50-60 thousand per year as the premium amount for coverage of Rs 1 crore. However, now you can get the same coverage at a nominal cost of around Rs 10000.

More the age-more it will cost

Yes, it is a fact that with an increase in age, the premium of the desired term insurance plan would also increase. There are many reasons behind the same. However, the most common reason is health related. As the age increases, the possibilities of having a disease also increases which makes it difficult to buy a term insurance policies and even if you buy one, it would be very expensive to afford. Hence, don’t waste your time and decide early when you are young and can easily afford the premium amount and the coverage that it offers. Compare online from a host of products available and do make sure to review your term plan every once in a while basis your needs.

Your family would love it

I really don’t know if you are going to buy a term plan or not, but your family would love it for sure. It would be a great gift for them. They would be happy when they come to know that you have taken this step for them, for their security and a better future. It shows that you want to protect them in every possible manner.

Bring peace of mind

It really feels awesome when you know that your life is covered under a term life insurance. You will feel relieved for sure. An online Term Insurance Plans would take care of all your loans and liabilities as well.

How much you should buy

Basically, the answer to this question varies from person to person. It depends upon the amount of assets that you have. As per the thumb rule, you must buy a plan which provides coverage in the range of 15 to 20 times your yearly income. Also check the family requirements which would be enough to live a similar lifestyle after you are gone.

What should be the best tenure of term plan?

Most people would go for the longest tenure. Tenure till retirement + 5 years should be good enough. With retirement your expenses fall and hence the financial reliance on your income also subsides a bit. So there isn’t too much requirement of insurance as such.

Benefits of Online term plans

Term plans are same whether it is available online or offline. But if you purchase the plan online, then you get all the benefits at the cheaper rate. It is advisable to buy term insurance plan online for the following reasons:

– Low premium rates

– Less time taking

– Minimum paperwork

– Transparent

– No health check-up for some age groups

So now that you know the various benefits of having a term plan, what are you waiting for? Start your search and find the best suitable plan for you at any of the online IRDA Approved insurance aggregators. Buying insurance and peace of mind was never so easy.

[Source: http://www.policyx.com/blogs/need-of-term-insurance-its-early-planning/]

Top 5 Term Insurance Plans in India

As the term insurance plans is a plain insurance policy without any embellishments, it is very important to know the yardstick to measure one policy over the other.

There are two basic standards that can help you to cherry-pick the best insurance company:

1.  Compare the Claim Settlement Ratio of the insurance provider
2. Compare the premium offered

My previous editorial on Term Insurance- A necessity!, can help you to understand the fundamentals of Term Insurance policy and how it is better than other insurance plans.

In this article, I present you 5 famous term insurance plans offered by different insurance providers in India.

Let us first understand the meaning and significance of Claim Settlement Ratio before you zero in a term insurance plan.

Claim Settlement Ratio:

As we all know, insurance is a life protection tool. In case of unfortunate demise of the policy holder, the family members/ nominee approach the insurance company to claim the sum assured.

As an expectation, the insurance company, after completing the pre-requisites, should hand over the claim to the family of the deceased. But it does not happen always.

Insurance regulator IRDA’s annual reports for 2012-13 reveal that of the total 23 private life insurers, only five have a claim-settlement ratio of over 90% (in terms of number of policies). The figure tells you that many insurers are stingy when it comes to passing on the benefits to nominees.

The claim settlements ratio of an term insurance company indicates the percentage of claims that have been approved out of total claims that are unsettled.

Higher claim settlements ratio indicates that a life insurance company is making the payments when they are outstanding, in this case a premature death.

It is very important for the insurance buyers especially for those who are availing the term plan to verify the claim settlement ratio of a company before the commencement of their policy.

[Source: https://blogterminsurance.wordpress.com/2015/10/07/top-5-term-insurance-plans-in-india/]

How New Age Buyers Are Buying Term Insurance For Cheap

More and more new age buyers are buying term insurance products online. Buying online is not only quick and hassle free, but it also enables you to buy a product at low premiums. However, not all online buyers are taking the full advantage of online buying. Let’s find out whether the new age buyers are informed enough.

Who are Buying Term Insurance Products Online

A majority of people who are buying term plans online are urban, young and tech savvy, say market observers. Most buyers seeking online cover are within the age group of 30 to 44 years! In most cases, these customers are financially established and their levels of insurance awareness are specifically high. Actuary experts have revealed that most of these buyers are executives who have loans as liabilities. They are the ones who are keen on protecting their families from the uncertainties of life. And, insurance providers too have shifted focus to the online segment, as they are getting good business from the online customers.

The Claim Experience of Online Buyers is better with Online Purchases

Owing to the high awareness levels of customers seeking term life protection products online, the claim experience proves to be better from the company perspective. When buyers seek plans offline, there is always a possibility that the insured has only signed on the form. The vital details and responses could have been filled in by the agent. As a result, the information could be inaccurate and sketchy. Conversely, when a buyer sources term insurance online, it is more likely that the policy holder has completed the form on his own. Naturally, the quality of information is much better.

Why is Pricing the Key Differentiator?

Well, most other features for offline as well as online term plan are likely to remain the same. Both would promise to pay out the selected sum assured or the amount for life covers to the nominee in case the policyholder is no more. The key differentiator clearly is the price. According to company representatives, online policies are clearly 30 to 40% cheaper as compared to their offline counterparts. Remember that online sellers do not need to bear any distribution cost. This price advantage is passed on to the customers.

There are Some Flipsides too!

Of course, there are some flipsides too. For instance, the nominee may not be well versed with the online claim settling procedure! He or she may or may not have an agent for help or support. However, the positives clearly outweigh the negatives here. Online purchase of term insurance is a roaring trend and is here to stay.

[Source: https://insurancelifedotorg.wordpress.com/2014/09/14/how-new-age-buyers-are-buying-term-insurance-for-cheap-2/]

Understand Various Aspects of Term Insurance Plans and the Online Choice

Do not undermine the importance of life insurance. A life cover secures the future of your loved ones by offering financial protection. Your survivors will find it easy to meet expenses and attain financial goals in your absence with the right cover. Term insurance is the right choice for young individuals as it provides coverage for a limited period at fixed rate of premium payments. On the expiry of the period, you will have to forego the coverage or consider obtaining further coverage. If you are on the lookout for a less expensive way of purchasing death benefit, then term insurance is the right choice.

Securing the dependents

A term insurance makes sense when you plan to provide for your dependents for a limited time. The sum is paid to the beneficiary on the event of death of the insured. This insurance instrument does not come with investment feature or savings. A term insurance will cost less than a whole life insurance policy for the same coverage. You will have to submit a medical or financial underwriting when the first policy expires. The premiums will cost more as you age. If you are young consider buying a term insurance with a longer period of coverage.

A basic plan

A term insurance comes without frills and offers high coverage at low premiums. If you outlive the life cover period, you will not be paid anything. A term plan is the most basic of all plans. After learning about the various aspects of a term plan you may be wondering do you need it. If you have dependents, the answer is yes. With an adequate Term Insurance Plans cover, you can secure the future of your loved ones. With death benefit which they receive they will find it easier to cope with the financial burden in your absence.

Buy the plan online

You can consider buying a term plan online. Internet is an important channel which is also used to distribute financial products and services. Experts feel that the online channel is both transparent and cost-effective. With the online mode of selling policies, firms are saving several thousands. They have discovered that the online mode of selling is very effective. They no longer have to pay hefty commissions. They pass on these savings to the customers and lower the premium costs. You can compare the policy lenders online and request for quotes. After comparing the quotes and reviewing the policies, you can take the right decision.

Advantages of buying plan online

Online term insurance plans come with an array of benefits. They can be obtained at low premium rates and the process time is faster. In some cases, the policies are issued instantly. The amount of paperwork involved is much less. The entire process is completely transparent. In the case of certain age groups, no health or medical check-up is required. With the right term insurance policy, you will get the much needed peace of mind. There are very few insurance policies which give such high coverage for low premium rates.

[Source:https://insurancelifedotorg.wordpress.com/2014/10/13/understand-various-aspects-of-term-insurance-plans-andthe-online-choice/]

Features of the Two Leading Types of Term Life Insurance

A fixed time-slot and this happens to be the basis of the term life insurance. You are supposed to purchase the policy and keep paying the premium for the preset period. After the time lapses, you have two sets of options to consider. First, you can give up the coverage. Second, you can renew the plan. The second time you renew the plan, you may have to comply with completely new terms and conditions. The concept is different from the policies of the permanent type. The latter serves as a source of investment. You can use the permanent form of indemnity for the purpose of property planning.

The essential features

On the other hand, term life insurance mainly has one purpose to serve. Death benefit happens to be the one of the leading purposes of this particular type of insurance. As long as you are regular with the premium payment, you will have no issues in recovering the claim. You are supposed to nominate a beneficiary, and, in your absence, the named individual/individuals will receive the amount. Second, you can also use it for the purpose of replacing your income. The premium rates are more affordable than the other variety of insurance. There is yet another point of advantage. The coverage that you get is just enough, although the maintenance cost is affordable.

The basis of the difference

There are different kinds of term life insurance. It is the modes and modalities of premium payment that sets the basis of the difference. Not every policy may be similar regarding the deal of premium payment. On the one side, you have a term insurance that is annually renewable. The coverage keeps renewing annually. In this particular scheme, the premium rate is not uniform. During the initial years, the premium rate is low, but with the passage of time, the rate keeps increasing. So, if you have chosen for a definite time-thresh of 10 years, you will have the least price to pay during the initial 5 years.

The parameters of selection

Thereafter, the cost will keep multiplying. But things are different with the schemes where the premium payment is uniform for the entire time frame. So, even if your policy is for the stipulated time-thresh of 20 years, the rate is not going to change. The level term of premium payment happens to be the defining parameter of this particular scheme. Your earning potential is going to have a decisive role to play. Accordingly, you can make your choice. Much depends on the expected rate of increase.

The perfect choice

If you think that your earning limit will increase substantially over the years, you can opt for the former scheme where the rate keeps varying with the passage of time. The term insurance that has uniform or level premium rate is an ideal option for the medium and the low wage earners. You know that the income limit is not going to increase drastically with age and experience; as a result, it is better to stay with the level premium rate. It gives you the protection that you need. But at the same time, your expenditure level remains more or less uniform.

[Source: https://insurancelifedotorg.wordpress.com/2014/11/23/features-of-the-two-leading-types-of-term-life-insurance/]

Why Term Insurance Quote is Necessary

Getting the best term insurance policy quote online and subsequently, buying your policy is a very simple procedure that hardly takes few minutes.

But, have you ever thought about why a quote has so much importance when it comes to purchasing online term insurance policy.

We all have so many things to do with our money instead of buying this insurance type but all these things are worthless if our family is not cover. Getting insurance quotes from the reliable insurance service provider is important because it ensures that the term plan takes care of your family needs even if you are no more around to fulfill their requirements.

In your absence, it guarantees that tomorrow’s of your family will be better than today. Therefore, take some time and do thorough research once you decide to buy term insurance India.

First of all, customer needs to figure out why he or she needs online term insurance policy. Buy the best term insurance plan only when you decide how much you and your family need to fulfill their requirements.

This insurance type has supported so many families by giving them peace of mind and freedom to continue their standard of living even when breadwinner is not around his family.

Getting life insurance quotes is just the simplest way to know your needs, coverage and premium amount. It helps you to get the best possible coverage to insure your loved ones. The process to get online quotes is very simple, easy to understand and less time-consuming. You only need to fill an online form and within a minute, you get your quote.

Term Insurance for whole life is useful for unmarried or married individual. It can help the policyholder to create a sufficient financial corpus for the future to protect his dependents economically. To check the policy is right for you or not, you must weight term insurance advantages and disadvantages.

[Source:http://www.policyboss.com/blog/term-insurance/why-term-insurance-quote-is-necessary]

What to Expect from Term Insurance in India

Term insurance is a form of life insurance that expires after a designated period of time. These plans have gained immense popularity in India owing to the fact that they secure your family’s financial future with much lower premium payments than whole life insurance.

Why Choose a Term Plan to Secure the Future of Your Loved Ones

If you are the primary breadwinner in your family or even one of the income generators, you would want to ensure that your loved ones have the funds to fulfill their needs and even accomplish their dreams, even after your demise. There are several other advantages of choosing a term plan, including:

• Stability: Your money that you pay as premiums is not put into any risky investments.
• Tax benefits: Term insurance in India allows you the same tax benefits as other life insurance policies. Under Section 80C of the Income Tax Act 1961, a sum of up to Rs. 1 lakh is deductable from your taxable income.
• High flexibility: Good insurers offer various customization options.

You may choose an Online Term Plan in which the insurance cover rises every year to combat the impact of inflation. Some term insurance policies allow you to opt out of making payments for the entire term. You can choose a term plan that staggers the claim amount over a period of time, if your nominees are young or would not be able to manage the investment of the claim amount.

          What to Consider When Opting for Term Insurance in India

          There are two main decisions one needs to take for choosing an apt term insurance policy:

1. The amount of cover: The cover should be sufficient for your family to meet its basic needs, fulfill certain goals (like education and marriage) and pay off any liabilities that you may have incurred (like auto loans). However, too large a cover would mean excessive premium payments that would restrict your current lifestyle.
2. Duration of the term plan: If you are in your 20s, you may want to opt for the maximum duration. This is because you would not want the policy to expire when you are middle-aged and would then need to take another life insurance policy at a much higher premium. However, if you are in your 40s, even a 20 year plan may be sufficient. Experts believe that the tenure of the policy should extend to cover a person till he retires.

It is a good idea to buy the term plan online, for its convenience and minimum hassle in documentation.

[Source: https://insurancelifedotorg.wordpress.com/2014/08/05/what-to-expect-from-term-insurance-in-india/]