How to Purchase Term Insurance Plan Online?
Updated On Jul 18, 2021
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With the boom in the e-commerce industry, all the financial instruments along with insurance plans are now easily available online. Purchasing a term insurance plan from the official website of your respective insurance company or through an insurance web aggregator helps one in saving both their time as well as money. There is no need for the expertise of an intermediary or agent during online purchase, and the entire transaction happens directly with the insurance company.
Steps on How to Purchase Term Insurance Plan Online
You should follow the below given steps on purchasing term insurance plan online:
Step 1: Assess Your Needs
You are required to have an adequate sum assured of your term insurance plan in order to meet all the needs of your family members financially in your absence. While keeping all these things in mind, evaluate your income sources, current debts and liabilities, number of dependents, and all the other incurred expenses to maintain their existing lifestyle. Moreover, in case you are planning for the education of your child, marriage or for your spouse’s pension, then the sum invested into all these instruments also needs to be taken into consideration.
Step 2: Do Comparison of Various Quotes
There are generally three kinds of term insurance plans available in the market i.e standard term plans, term plans with increasing monthly income and term plans with monthly income.
The amount of premium paid for buying a term insurance plan would differ according to the cover, type of plan, gender, age, duration, and any addictions or habit like smoking etc. Hence, to secure a good deal on your insurance plan, it is necessary to do a thorough comparison of various insurance quotes.
Step 3: Claim Settlement Ratio of the Insurance Company
After the comparison when you decide to opt for the best suited plan for yourself, make sure to check the possibility of the insurance company sanctioning the sum assured promised to your loved ones after your sudden demise. This is the reason why you must definitely check the claim settlement ratio in order to know which insurance company settles the claim best and to what extent.
Step 4: Factor in Inflation
While buying a term insurance plan, age and the term of the plan are the primary factors that need to be considered, make sure to account towards the impact of inflation on the lifestyle needs. To prevent inflation from biting a good amount of share into the amount of your sum assured, it is advised to go for a term plan that offers protection against inflation.
Step 5: Look for Riders
Riders can help the policyholders in enhancing the coverage extended by the term insurance plan. Various insurance companies provide the provisions of including riders to their term plans, hence raising the scope of protection.
The steps afore-mentioned are the five simple steps to select the best term insurance plans. You can follow them, get a quick quote and protect your family’s future financially.
Also read - What Type Of Life Insurance Should I Purchase?
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.