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Term Insurance

Secure your family's financial health and future.

Things You Must Know About Term Insurance Plans

We all strive hard to give the best to our family members without any hassles. But what if you being the breadwinner of the family suffer an untimely death? Will you still be able to fulfill your family’s needs and aspirations in your absence? Though it may sound unrealistic, you can certainly make arrangements for your family’s well-being post your demise. Losing someone you love and care can be painful and bitter. But to make things less bitter, you can buy a term insurance plan that would offer your family a financial help in their tough times.

Term Insurance Premium Calculator

Don't know what's a term insurance calculator? Never mind! Let's dig deep into the details and understand how to use a term insurance calculator and the benefit it offers.

A term insurance premium calculator is a tool that helps you find out the amount of your premium that you agree to pay for your chosen sum assured under a term insurance plan. You simply choose a term plan depending on the quotes and pay the premiums. But, do you know, how to use the term insurance premium calculator?

How to Use a Term Insurance Calculator

  • The term insurance calculator will ask you to enter your personal details like your name, gender, date of birth, mobile number, marital status, annual income, smoking and chewing tobacco habits, your preferred cover amount and the age/period till which your policy should cover you etc.

  • Once you enter these details the term insurance calculator will give you a plethora of term insurance plans offered by different insurers. Select the buy now button on the one you feel would give you the right coverage at the right price

  • The term insurance calculator will ask you to feed in the details of your address, nominee and finally take you to the payment gateway option

  • You can now make the term insurance payment online using your debit card, credit card or your net-banking facility

Benefits of a Term Insurance Calculator

The way you do a proper R&D before buying anything online, it does make absolute sense to run through a same research before buying a term insurance online. Here are the benefits of using a term insurance calculator:

  • The term insurance calculator will help you know the exact premium for your chosen coverage amount to safeguard your family in case of your untimely death

  • Your term insurance online shopping becomes a simple and convenient process

  • You become a well-informed customer about the market know-hows

  • You get to see plans of different insurers under one roof

  • You get to compare features and rates of different term insurance plans for the best deals ever!

  • Online term insurance is cheaper and simple to understand

Factors to Look Out Before Comparing Term Insurance

With a plethora of term life insurance companies in the market offering another plethora of different term life insurance plans, it becomes a daunting task to narrow down your search! After all, each term insurance policy assures better products than the other. Therefore, it becomes imperative to compare term insurance considering the premium and the coverage it offers. All you need to do is a bit of research and comparison. Online term insurance comparison would guarantee you the best term insurance plan at an affordable premium!

Let’s have a look at the factors you should watch out for before comparing term insurance plans:

Premiums Against Size of Life Cover

Everyone wants to be covered sufficiently. Compare the premiums for the size of the life cover offered by the insurance company. This should be ideally large enough to cover all your debts as well as aid your loved ones to lead a comfortable lifestyle post your demise. Nevertheless, the premium too should be pocket-friendly for the cover you opt for!

Features of the Term Plan

Always dig deep into the features and benefits offered by the insurance companies while you compare term insurance online. Watch out if the policy you wish to opt for offers flexibility to choose the tenure of your choice, the sum assured amount, inbuilt features like terminal/critical illnesses, accidental death benefit and the premium payment modes.

Additional Rider Benefits

Riders are add-ons that enhance your basic term plan insurance. You can buy term insurance riders at an additional cost. Before buying a term insurance plan online, ensure to compare the riders offered by different insurers. Some of the important riders you may wish to add to your policy are critical illness rider, accidental death benefit cover etc. However, it is recommended to buy one only as per your requirement.

Claim Settlement Ratio

Claim settlement ratio of the company replicates the proportion of the total claims settled against the total claims raised. Higher the claim settlement ratio, higher are the chances of your claim getting fulfilled by your term insurance company. It is very important to keep a keen watch on the claim settlement ratio to ensure that your claim gets settled when the need arises. Therefore, keep this important factor in mind while comparing term insurance plans.

Insurance Company’s Reliability

Before buying term insurance policy, ensure that the insurance company you wish to opt for is reliable and stable enough to develop trust among their customers. Basis the company’s reputation and the financial goodwill, you will get a clear picture of its business and the bankruptcy status. Therefore, before you buy term plan insurance online, do not forget to compare the term plan basis the insurance company’s stability.

Why should You Buy Term Insurance Plans Online?

Right from clothes to shoes to house-hold items we love to shop online. We like this way of shopping because we get so many choices to pick and choose from. Then why shouldn’t this be applicable to buy term insurance online too? We love exploring all the possible options. Coverfox.com offers you a plethora of term insurance plans under one roof with benefits like unbiased advice and after sales-services! Let’s have a look at the reasons to buy term insurance online:

  • Pocket-friendly: Experts say online term insurance plans are almost 40% cheaper than the offline plans. Now, who doesn’t want to save their hard-earned money? You skip all the intermediary charges like paper-cost, agent’s commission, processing fees etc. The insurance company therefore passes on their benefits to their customers.

  • User-friendly: Don’t worry if you are a newbie to the internet. Coverfox.com has a user-friendly gateway to take you through the process of buying term insurance conveniently. Comparing term insurance with different insurers would help you make a right choice.

  • Expert-knowledge: Any broker is licensed with the Insurance Governing Authority (IRDAI). They offer you the finest approach for all your needs related to insurance. Essential and top-notch services make them more reliable.

  • Back-up of your policy documents: In case you buy a term insurance plan with Coverfox.com, you can login and view your purchased term insurance policy on your online account. Besides, you also receive a soft-copy on your email address that gets saved too!

  • Reminders for renewal: Coverfox.com sends you timely renewal reminders to help you avoid from lapsing your policy.

Term Plans Available in India

PLANENTRY AGE (MIN/MAX)CLAIM SETTLEMENT RATIO (2015-16)
Bajaj Allianz iSecure Online Term Insurance Plan18/60 years91.30%
Aegon Life iTerm Insurance Plan18/65 years95.31%
ICICI Pru iProtect Smart Term Insurance Plan18/65years96.20%
Canara HSBC eSmart Term Insurance Plan18/70 years92.99%
Kotak Preferred Term Insurance Plan18/65 years89.09%
LIC eTerm Plan18/65 years98.33%
PNB MetLife Mera Term Insurance Plan18/65 years85.36%
Max Life Super Term Insurance Plan18/60 years96.95%
SBI Life eShield Term Insurance Plan18/65 years93.39%

Term Insurance Claim Process

In case of any uncertainties or unforeseen circumstances, the dependents as allocated by the policyholder during the policy commencement are required to file a claim. This process is simple as compared to other insurances.

Below is the claim process explained in brief:

  • Registering the claim with the insurer: The dependents of the policyholder need to intimate the insurance company about the claim. They can either visit the insurance company or contact as declared in the insurance policy document.

  • Submission of policy documents: Documents such as death certificate, original term insurance policy, proof of claim, history of medical documents etc. as per the insurance company's requirement. The insurance company may ask for additional documents too, if need be.

  • Final decision: On successful submission of the documents and verification by the insurance company, the claim will either be selected or rejected.

FAQs on Term Insurance

What is the right age to buy a Term plan?

  • There really is no right age for making an investment when it comes to Term Insurance. Like any other insurance plan, the earlier you opt for it, the better. If you do manage to buy the plan at an early age:
  • The premiums will be relatively lower. Now that's a win-win situation!
  • Your liabilities are at a low, hence you might not require to insure a big sum, which will eventually result in lesser premiums.
  • As health risks largely depend on the age, getting covered is easier and hassle-free. Who doesn't like that?

What are the things you need to know when you are investing in a Term Insurance plan?

  • You take a term insurance plan with the sole purpose of ensuring that your family members are adequately supported in case of your death. In such a sensitive case, you must always weigh your options on all possible parameters:
  • Coverage: Be sure that the coverage being offered will be sufficient for your family or the nominated person. Never ever compromise on it for the sake of a lower premium.
  • Claim Settlement Ratio: The insurer's claim settlement ratio and market reputation will ensure that your claims are honored when needed, so always keep that in mind.
  • Inflation: Keeping inflation in mind, always consider how sufficient the coverage amount will be in the future.
  • Add-on feature: Always supplement your term insurance plan with suitable riders for the most comprehensive coverage.

In an unfortunate event of your death, how can your nominee claim your Term plan?

  • If you have invested in a Term Plan, it is advisable to keep your nominee aware of the situation so that if and when the time comes, he/she can claim the policy for which you have been shelling premium every year. To make the claim, the following steps need to be taken:
  • Every insurance company has a pre-set procedure defined for making a claim. Hence, following your death (and yeah, even though it sounds scary!), your nominee has to intimate the insurance company of the same.
  • All necessary documents including Claim Form, Death Certificate, original policy documents, hospital and medical records and bank account details of the nominee, etc. are to be submitted to the insurance company for further processing.
  • Always prefer to communicate with the insurance company through written medium like an email to maintain a track of your conversation. You never know when it might come in handy (though we hope it doesn't).
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