6 Things to Consider before Buying an Online Term Insurance Plan

Buying a term life insurance online is as easy as ABC these days. Most insurance providers now have a comprehensive and completely online process for buying a term insurance policy.

First, let’s understand what a term insurance is.

What is term insurance?

A term insurance is a life insurance policy that provides financial security for your family for a specific period of time.

Your beneficiary can claim the insured sum in case of your unfortunate demise and thus, your family will be financially protected even when you are not around.

If you are planning to buy a term plan online, there are certain things that you should keep in mind so that you can make sure you choose the right plan. Let’s look at some to them –

Things to consider before buying online term insurance plan

  • Make sure you choose a legitimate insurer – With the advent of online opportunities, the number of scams are on a rise too. This makes it extremely important to make sure you choose an insurer that is legitimate. Insurance Regulatory and Development Authority of India (IRDAI) is the insurance watchdog in India. You can visit their website to confirm your online term plan is genuine. You can also contact IRDAI if you notice a scam or counterfeit website.
  • Plan you term insurance carefully –

Buying a term insurance is a decision that directly affects the financial security. Thus, your term insurance should be well planned and beneficial for your family.

There are three main points to consider while planning

  • Coverage amount – Your insured sum should be enough to provide for your family in your absence. The amount should cover all your debts, including loans, and should be also adequate for your family to financially survive for a long while.
  • Tenure – Your insurance plan’s duration should be long enough to cover for your family to survive till a time where they are financially independent. This is extremely important if you have children. You should make sure that your plan has coverage till they become financially independent.
  • Payment – How you choose to pay for the plan should also be a factor. Not paying on time might result in a lapse. If you tend to be forgetful, consider options like single payment term insurance.
  • Make sure your premium is affordable – Like mentioned above, non-payment of premiums could lead to lapse of your online term plan. This makes it extremely important to make sure your term insurance premium is something you can afford, no matter what. You can calculate your premium using any term insurance calculator available online.
  • Make sure your family understands term plans – It is extremely important to make sure your family is well aware of your insurance policy and its details to make claiming the insurance seamless for them if there is ever a need. Make sure your beneficiary can answer the following questions
  • What is a term plan?
  • Who is your insurance provider and how much is the sum-insured?
  • What are the riders added and what are its benefits?
  • How to claim your insurance?

You should also make sure your beneficiary has all the documents related to your plan.

  • Make sure you do your research – Research is extremely important when it comes to buying term insurance. You should make use of the resources available in insurance company websites and understand all the nuances of a term life insurance before buying one.

You can also use resources like a term insurance calculator to figure out what plan and premium would work for you.

  • Make sure you buy one – This might sound obvious, but you should not procrastinate when it comes to life insurance. Since the resources and websites are available readily online, many tend to procrastinate for a long time. This could put your family’s financial security in jeopardy. It’s wise to take your time for research and comparison but as soon you have enough information, it’s best to buy a plan as soon as possible.

Buying a term life insurance was never this easy. Everything, including support and advisory, is available online and you can get yourself insured in just a matter of seconds!