Tuesday 20 October 2015

Term Insurance - Which term insurance plans you should prefer

<iframe src="//www.slideshare.net/slideshow/embed_code/key/eruZdP7o5KVZK5" width="425" height="355" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" style="border:1px solid #CCC; border-width:1px; margin-bottom:5px; max-width: 100%;" allowfullscreen> </iframe> <div style="margin-bottom:5px"> <strong> <a href="//www.slideshare.net/Gaurav006/term-insurance-which-term-insurance-plans-you-should-prefer" title="Term Insurance - Which term insurance plans you should prefer" target="_blank">Term Insurance - Which term insurance plans you should prefer</a> </strong> from <strong><a href="//www.slideshare.net/Gaurav006" target="_blank">Gaurav Kadam</a></strong> </div>

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Wednesday 14 October 2015

Term Insurance - Which term insurance plans you should prefer

<iframe src="//www.slideshare.net/slideshow/embed_code/key/eruZdP7o5KVZK5" width="425" height="355" frameborder="0" marginwidth="0" marginheight="0" scrolling="no" style="border:1px solid #CCC; border-width:1px; margin-bottom:5px; max-width: 100%;" allowfullscreen> </iframe> <div style="margin-bottom:5px"> <strong> <a href="//www.slideshare.net/Gaurav006/term-insurance-which-term-insurance-plans-you-should-prefer" title="Term Insurance - Which term insurance plans you should prefer" target="_blank">Term Insurance - Which term insurance plans you should prefer</a> </strong> from <strong><a href="//www.slideshare.net/Gaurav006" target="_blank">Gaurav Kadam</a></strong> </div>

Tuesday 13 October 2015

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]

Monday 12 October 2015

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]

Saturday 10 October 2015

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/]


Wednesday 7 October 2015

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.

Tuesday 6 October 2015

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/]

Monday 5 October 2015

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
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/]

Thursday 1 October 2015

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/]