Did you know that term insurance rates differ by more than 40% across several companies in India? This brings to a simple conclusion that getting term insurance at the lowest possible premium and maximum coverage is important. However, deciding from a cohort of diverse rates where each company claims of best of the offerings, it may become little difficult.
After reading this article, you will understand how to choose an appropriate policy from the clutter of policies available in the market. The purpose is to help you take informed decisions and get the most reliable term insurance plan in India.
Further you can browse through relevant points which will help you in selecting the best and the safest term insurance policy in India.
Make a prudent beginning-
It is a famous saying, “Prudent beginnings give fruitful results.” The same applies to when selecting your term insurance provider. You should get term indemnity only from an insurance company which is valid as per the IRDA-Insurance Regulatory and Development Authority.
An insurance agent may not always be the best option for the following reasons-
· The plan recommended can be way expensive
· He’s more likely to recommend you something where he can get a higher commission.
Term plansprovide low commissions to agents. Since, last few years, term insurance rates witnessed significant cut by 40-50% thanks to increased competition & lower mortality rates.
Buy term indemnity online in the quickest manner possible. The benefits include-
· One can easily compare features and prices of several term insurance plans
· The process is simple & fast
· Most companies enable all documentation & medical test reports to be delivered to the insured’s home
· Most insurance companies favor lower commissions for online sales. Hence, you can get term insurance plans at lowest rates which can save you 30% money than the offline way!
· One can easily pay his premium via credit card or net banking
The most important query regarding the validity of sum assured- answered: (after reading this you’ll know the conditions for the beneficiary to receive sum assured)
Consider that the policyholder survives throughout the policy duration. In this case, the risk cover will be terminated. Therefore, there won’t be any amount paid to the policyholder nor his dependents.
However, if the policyholder dies during the policy period then a sum assured amount will be paid to the policyholder’s dependents. The insurer will pay the sum insured amount to policyholder's dependants or the one who is listed as the nominee in the policy.
Tern insurance plan can be looked upon as savings plan or as a protection cover.
It’s a good investment option for retirement benefits.
One surprising fact is that products like ULIPs and insurance are looked upon as long term investment options. However, their very basic function which is to provide insurance or protection is ignored to large extent.
Note- The distributors tend to sell policies unfairly. They sell policies just to obtain higher commissions by charging higher annual premiums to the buyers. Hence, it is important to take the help of professional to avoid such problems.