Saturday 30 April 2016

People Preferring Term Insurance Plans With Allied Features

With increasing policyholder’s interest in buying term insurance plans, insurance companies have started offering allied features with it. Term insurance plans have no longer remained just plain vanilla plans.
Pure protection plans pay nominees the pre-fixed amount in case of policyholder’s death. Of those online buyers, a majority prefer to choose term insurance as they are easy to understand and buy.
Increasing number of people is opting for online term insurance plans to benefit from lower premiums. Online term insurance plans are approximately 30% cost effective compared to offline plans. But price is not the only criterion any more to opt for online term insurance plans. Customers understand the importance of benefits, ease of buying and claims experience of company.
Additional features too drive their decisions. Given changes in life expectancy, people are looking for longer coverage and want to enhance cover through riders.
Customers are doing much more research before buying a  Online term insurance  plan, aided by internet. The decision making for customers has also become much faster. Here are some popular additional features that people opt for with term insurance plans:-
Increasing sum assured: When it comes to longer-term investments, inflation is an important factor to consider. To protect the sum assured from proving insufficient years later due to inflation, option that increase the sum assured over a period are being preferred. Few companies offer this as rider currently. But similar plans which increase sum assured at various life events are available. Options to increase cover in term insurance are meant for those who want to increase the protection cover at different life stages like marriage, child birth, etc.
Return of premium: This option is for those people who expect something in return from their every investment. For those survive beyond the term insurance policy tenure, term insurance would seem to be a wasteful expenditure. To fix this, an option of return on premium was initiated by some insurers. Such feature helps the policyholder get the premium back at the end of the tenure. Even though they are costly, the return on premium riders are being opted by individuals.
Staggered maturity payment: When it comes to maturity amount or death benefit, the payment of staggered payments over five-ten years instead of lumpsum benefits is being opted for. Policyholders are opting for a mix of income (staggered maturity payment) and lumpsum.
Policy tenure: Term insurance plans are available for a period of as low as 5-10 years. But people are often opting for the higher end. Typically, one should seek protection based on the retirement age. However, one can lock-in at lower premium if they buy insurance at younger age; the tendency has been to opt for longest possible tenure.

Salary replacement: There are covers available to protect one from loss of salary due to disability, accident, etc. This option takes away the uncertainty from the minds of the beneficiaries. Increasing benefit option (5% rise in insured amount every year) under a salary replacement plan also addresses inflation and rising cost of living.

Friday 29 April 2016

Which Company To Choose To Buy Term Insurance Plan


Term Insurance Plans are the best plans to cover risk of life. Term plans not only provide high risk cover but with less premium in return. With increase in the Insurance companies premium for term plans differ very much. Difference in the premium can be double between lowest to highest, this puts the person taking insurance in dilemma of which company is best to take Term Insurance Plans.
Key to choose the company to take Term Insurance Plan is not the premium is be paid, but the performance of the company toward claim settlement. Term plans do not provide any returns to policy holder if survives till the end of the term, it is only taken to provide the financial security to you loved ones. What if the claim is denied to you nominee?
Following things to be kept in mind before choosing right insurance company to buy term plan
Claim paid percentage must be greater than 90% for both numbers and amount.
Don’t see the number of claim settled, but also the amount of claim settled too. It shows whether higher sum assured plans are settled or not.
See if higher amount is pending at the end of the year, Means Company is taking too much time to settle the higher sum assured plans.
Above data do not show reason for rejection of claim, rejection can be due to genuine reasons, therefore data should be used wisely to arrive any final conclusion.
Do not go for low premium only.
Older a bigger companies have good claim settlement ratio and faster settlement process too.
Choose a company with a better network.
If you are planning to buy the plan online, then make sure the office of the insurer is in your town or very near to you to avoid any inconvenience later on.
Read the terms and condition as soon as you get the policy bond.
Your decision to take the Term Insurance Plan is to secure the future of your loved ones when you will be not with them, so take right decision while taking the term plan so that they don’t have to suffer or denied to take the claim amount.

Source: http://blogterminsurance.tumblr.com/post/143572757586/which-company-to-choose-to-buy-term-insurance-plan