Steps to Buy Term Insurance Plans Online
Updated On Jul 14, 2021
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The financial security offered by a term insurance policy in the event of the policyholder's untimely death allows dependents and beneficiaries to continue living their lives without making significant changes to their lifestyles or future aspirations. Although conducting a complete and in-depth analysis of various policies offered by multiple insurance companies can be tiresome and time-consuming, purchasing term insurance can be done swiftly using internet platforms and websites. Here are some pointers to keep in mind while buying term insurance online.
Steps to Buy Term Insurance Plans Online
Here are the steps to purchase a term insurance policy through online platforms.
1. Requirement Evaluation
You can calculate how much of your term insurance policy's sum assured would be enough to satisfy your family's future financial goals and requirements. Moreover, include the number of financial dependents and existing liabilities such as loans and mortgages, as well as your current income, the rate of inflation, and an estimate of a suitable amount that satisfies the family's living practices and future aspirations.
2. Insurance Provider Selection
Selection of the insurance provider is an important step that should be done right to protect your loved ones from a nightmarish situation of claim rejection after your demise. You can compare different companies based on claim settlement ratio, persistency ratio and solvency ratio. The higher percentages of these metrics tell about the company's credibility, authenticity and reliability.
3. Premium Calculation
Using an online term insurance calculator, you can calculate the premium amount for your preferred term insurance plan. It's best to choose a term insurance policy with a premium that you can fit into your monthly budget.
4. Providing Required Information
You can enter your personal information, such as date of birth, gender, weight, height, contact information, monthly income, medical conditions(if any), hospitalisation history and smoking or drinking habits, as well as the sum assured and policy tenure, on the website of your chosen insurance provider.
5. Payout Mode Selection
You can decide a suitable mode of getting death benefit payouts from several options provided by the insurer. These include payouts in a lump sum, regular monthly income, increasing monthly income and a combination of a lump sum and monthly income. The lump sum mode can be selected if you have debt repayment obligations, while the regular monthly payment can be opted to serve as income replacement. The increasing monthly income will help beat inflation, whereas the last option can help plan your children’s higher education or marriage.
6. Rider Selection
Suppose you have a family history of illnesses like kidney damage, cancer, or heart attacks. In that case, you can go for additional benefits like a critical illness cover. Moreover, a death cover rider with additional accident cover can help cover unexpected costs if the life assured passes away in an accident.
7. Complete the KYC
To complete KYC formalities, you must upload a recent passport-sized photograph, ID proof such as an Aadhaar Card or a PAN Card, address proof such as utility bills or a driver's licence, age proof such as a passport, and proof of income such as income tax returns, as well as beneficiary information.
8. Read Policy Terms And Conditions
It is recommended to carefully examine the policy's terms and conditions and be aware of policy exclusions such as death due to war, suicide, or childbirth. Moreover, know about the payment mode and whether you can pay with your credit or debit cards or online banking. After your proposal has been approved, a soft copy of the policy will be emailed to you. A paper copy will be mailed to your address as well.
A term insurance policy can help you protect your loved ones' financial future. As a result, you should take advantage of the offer by carefully assessing all of the policies and purchasing the most appropriate one through the internet website.
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.