There is a good chance that you are buying a term insurance plan on the internet and find yourself worried if it would be safe or not. After all, you do not have any agent who can guide you in this case. That could mean you make such a mistake that it costs your family members when they need the policy the most. However, you need not worry. Just keep a few things in mind and you should have no issues with such a plan.
Be completely honest when you are filling up the online proposal form
When you are filling up the proposal form at the time of buying a term plan online you have to be fully honest. If you do some research in this regard you would see that there is little cause for concern provided you do your work properly. In fact, some experts feel that filling up the proposal form by yourself can be a blessing in disguise since there is no one else to misguide you.
Make sure you can pay the premium
If you use tools such as a term insurance premium calculator you would get all the information you need in this regard. Just do the needful and make sure that the policy premium is within your limits of affordability.
Get a complete health check-up done before you buy such a policy
The main reason for such a suggestion is the fact that the insurers would check your medical records before they approve or reject you as a policyholder. This is especially true for the policies where they are offering sums assured in the region of 50 to 70 lakhs. This is a lot of money and so insurers like to make sure that they are not wasting it on people who are likely to make a successful claim on such an enormous sum.
Find out about the claims settlement ratio of the insurer
The term claims settlement ratio implies the total amount of death claims that the insurer in question has settled. The ratio is basically the percentage of the claims it has settled in relation to the number of claims it has received from the nominees of its policyholders. Ensure that this ratio is as high as possible. It should ideally be at least 90%.
Documents Required for Term Insurance
There is a worldwide crisis due to Coronavirus pandemic. In India, the government is taking all necessary steps to prevent the spread. The lockdown implemented across the country is an example of how intense the outbreak is. In such extraordinary times, we all need better protection cover. We all have to stay at home and during this time we can ensure that our family is safe in the event of any financial emergency that may happen in the future.
Depending on your age and a few other factors, you can ensure the financial security of your family by purchasing term insurance online for yourself at a very low price. A term insurance plan is the right product for life insurance. It gives financial security to your family in case of any untoward incident. However, in this, the policyholder does not get any amount on maturity of the plan. Investment advisors also recommend keeping insurance and investment separate. If you keep insurance and investment separate then you will get a better insurance cover and you will also be able to earn a good return on investment.
In the term plan, the person buying the insurance keeps paying the premium for a pre-determined period. If the insured dies during this time, his family or nominee gets the sum assured. Term plan actually gets you covered at a very low premium. Usually, a term plan can be taken for 10, 15, 20, 25 or 30 years.
Documents required for term insurance
- PAN card proof of age (Passport / Birth certificate / PAN card / etc.)
- Proof of address (Passport / Ration card / Voter ID / etc.)
- Identity proof (Passport / Voter ID card / Aadhar card / etc.)
- Proof of income (Income tax return / Employer’s Certificate / Income tax assessment order)
- Recent passport-size photographs
How to choose the best term insurance online?
There are some guidelines to be followed when selecting the best term insurance online.
- Compare life insurance companies and check the track record.
- Calculate the cover you need.
- What is the claim settlement ratio of the insurance company?
- Read carefully the different terms and conditions of different life insurance companies.
- You can opt for two different term life policies from two different companies. This will save you in case of rejection from a company.
- Look for riders/add-on covers.
