Since emergencies in life do not come looking at a person’s age, term insurance plans provide life cover with no age bar. Therefore, any working individual looking to secure their family’s future can invest in the best-term insurance plan. There are various insurance providers in the market that you can choose from. Today we present the complete guide to the best term insurance plan. Keep reading to find out more.
A term insurance plan is an agreement wherein the policyholder receives a death benefit from the insurance provider. Upon the insured passing away, the insurer must pay the assured sum to the nominee. Although, if the insured lives till the maturity of the term insurance plan, they are given the aggregate of the premiums paid over the years for the term insurance corpus.
How to Purchase the Best Term Insurance Plan Online?
You can buy the best term insurance plan online in just a few simple steps-
Step 1: Fill in all the required details – name, gender, whether or not you consume tobacco, date of birth, phone number, and your annual income in lakhs.
Step 2: Select the desired tenure and assured sum. It is advised that you enter into a term insurance plan early in life because the premium offered to younger people is much lower.
However, if you are a middle-aged person, then your premium rate would be comparatively higher, and the term plan would be comparatively shorter in tenure compared to that of a young person. You can make use of a term plan calculator to figure out the premiums for the best term insurance plan online.
Step 3: Select a mode of insurance pay-out. You can choose from various pay-out options in the best term insurance plan.
● The lump sum amount can be transferred to the nominee in case the insured passes away. This option would be the best fit for people with debts or loans.
● You can transfer a part of your assured sum to the nominee while providing them with a steady flow of income for a predetermined period. This would be best suited if you have children who require financial backing for higher education or their wedding.
● You can provide your family with a steady flow of income every month for a predetermined period.
● You can provide your family with a steady flow of income that increases monthly for a predetermined period.
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Step 4: Select add-ons or riders. You can add additional benefits to your term insurance plan and make it more beneficial. Certain options for riders are-
- Death due to an accident: This sum will be paid to the nominee, with the basic sum assured if you pass away due to an accident while the policy is in effect.
- Critical illness cover: When a condition listed as a critical illness in the policy is discovered to exist in the policyholder, a lump sum payment is made to the policyholder.
- Waiver of premium on disability: Potential premiums for the policy would not be due if the insured incurred a permanent disability while it was in effect.
- Waiver of premium on critical illness: Further premiums for the policy would not be due if the policyholder received a diagnosis of one of the critical illnesses listed in the contract during the policy’s term.
You can calculate the additional costs for availing benefits of your riders by using a term plan calculator. It will ensure that you know the right figures for premiums before investing in one.
Step 5: Complete the KYC form. A KYC application requires you to fill in information such as your full name, phone number, and home address. You are also required to upload proof of income like tax returns, proof of name like a passport, and proof of home address such as a driver’s license. In addition, you will have to upload ID proof such as your PAN card or Aadhar card.
Step 6: You will also be asked to give your medical history. It will include information regarding your height, weight, whether you consume tobacco or alcohol, your history of hospitalization, reports of medical conditions, if any, such as diabetes or blood pressure, etc.
Step 7: Older adults might be required by insurance companies to go through comprehensive health check-ups. It is due to the high coverage rate required by older people. The premiums are also higher for aged people as they are more prone to diseases and need higher coverage for potential health risks. You can make use of a term plan calculator to measure the premiums.
Step 8: You should read the terms and conditions of your term insurance policy thoroughly. There is a certain exclusion of policies from term insurance plans.
Step 9: After completing and accepting the terms and conditions, you will be redirected to the payment gateway page. You can make the payment using debit/credit cards or net banking. You will receive a soft copy in your email and a hard copy of your insurance through mail post upon its approval.
As daunting as insurance may sound, it is highly beneficial and necessary. Therefore, you should choose the best term insurance plan following this complete guide to living a stress-free life.