Thursday, 23 June 2016

Best Online Term Plans In India

Are you planning to buy an online term life insurance policy? Do you want to know the best term insurance plan in India after the -term plan? Do you want to know the cheapest online term plans? Are you searching for the updated premium of online term insurance plans at one place? Do you want to objectively compare the entire available online term plan in the market?
This article will help you to select the best term life insurance plans in India. A premium comparison chart is also there to tell you about the best and the cheapest term insurance plan. After reading this article you get to know about the insurer with best claim settlement ratio. You will have the idea about the financial strength of the insurance companies.
In the next few minutes you will be able to judge the best online term insurance plan. But do you know the features of term plan? Do you know, the importance of the term plan? Do want to know why I recommend a term life insurance plan vigorously. Do you also want to avoid the greedy insurance agent ? If your answer is yes, then please go ahead to choose the best term life insurance. Else, You should first read the Term Insurance Plan Guide.
Parameters For Selection Of Best Online Term Insurance Plan
To compare the online term plan of insurance companies, I would go through these criteria.
·         Premium
·         Company Reputation
·         Claim Settlement Ratio
·         Solvency Ratio
·         Riders
1- Online Term Plans- Compare The Premiums
I know you care most for bargains. Hence, I will first talk about the premium of term plans. Indeed, the biggest benefit of online term insurance plan is the low-cost. The premium of online term insurance is 30-50% less than offline term insurance. This discount in premium is possible because of the many benefits of an online sale. Insurance companies save on agents commission and administration charge.
Also, The target group of the online term plan, the white-collar people, is considered more healthy hence less risky. Surprised? They are healthy not because, they do more exercise or physical labor. But they can afford better medical care of themselves. Like you, I am also not very much convinced, But insurance companies consider this. So, online term plans are most cost-effective. But like you and me everyone wants to save more. By taking some precaution you can keep insurance premium in control. You can also do this by comparing the online term insurance premium of different companies. A chart is given below.
2- Choose Reputed Insurance Company
You take Life Insurance for a long duration. Particularly, term insurance is taken for 20-35 years. The financial security of your family lies with the insurance company. In this scenario, the insurance company should be reliable and reputed. Definitely LIC scores on this front. LIC has backup of the government of India. It has been in the country for more than 50 years. Online Term Insurance Plans In India of these companies are professional. In my opinion, these two insurers are also in ‘A’ grade. Bajaj,SBI and also have better corporate governance record.  Rest life insurer falls in C grade. Please keep in mind, this grading is subjective.
3- Choose An Insurance Company Which Has Better Claim Settlement Ratio
The claim settlement ratio shows the professionalism of the company. This ratio is the number of claims honored by the company out of the hundred claims. Suppose in a year a company receives 100 insurance claims. But out of these 100 only 90 people get the claim amount. Remaining 10 claim is rejected for some reason. These reasons may be genuine, but it shows the probability of a claim being dishonored. I will never take insurance cover from a company which rejects the claims of the most people. Neither, you would select a company which can give a harrowing experience to your family. IRDA publishes claim ratio of every life and general insurance company in its annual report.
4- Know the Financial Strength of Insurer Through Solvency Ratio
The criteria of solvency ratio is a bit technical. Let us learn about the solvency ratio.
Insurance companies take premium from us and give the insurance cover.
Through actuarial calculation the companies know the number of claims can arise in a particular year.
The total assumed claim amount is considered a liability.
Besides this, companies has provision of the guaranteed maturity amount. It has to always maintain the maturity amount to be given.
5- Add value to online term insurance with The Riders

Term insurance gives you the basic cover. But you need more than basic cover. There may be some other risks linked to your life. You may also like to take insurance cover other than the death cover. Insurance riders are there to give you such cover.  Riders give value addition to the term cover. However, many insurance companies don’t give riders with an online term plan. Few of them give useful riders and you should consider them.

1 comment:

  1. Thank you for sharing such great information. It is informative, can you help me in finding out more detail on Term Insurance Plans ,i am very new to this field and wanted to understand the basics of investment insurance .