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.

Online Insurance- Setting New Trends In The Insurance Sector

The fast growing Indian online insurance market is characterized by numerous opportunities for the aggregator websites as well as Insurance companies to capitalize and grow their business. Almost every other day, there’s an introduction of new insurance products for online buyers by the insurance companies aiming to explore the possibility of innovative technologies which are simple to use and cost-effective. With growing awareness towards insurance, the number of people demanding better insurance products with excellent features of premium, cover and claim returns, technological advancements and cost effectiveness is rapidly increasing. The new IRDA compliances which provide comparison between the insurance products with unbiased information and are cost effective due to rising competition have become a key concern for Web Aggregators in India. The high internet penetration in India has helped in improving the online insurance penetration with plans for Health, Travel, Motor and Term insurance being in a constant high demand.

However, things were not as smooth as they are currently for the insurance sector. A few years ago, there were hardly any players in the segment and online insurance was almost unheard of. It was bewildering that for a country boasting of over 300 million internet users and an e-commerce business volume of over US$ 16 billion, there were no companies in the online insurance segment till a few years back. Whatever was there was present across the other popular B2C segments like, gadgets, travel and tourism, music, books and fashion goods and accessories.

The growth story for online insurance has been on an upward trend. The online insurance market is already in excess of Rs. 700 crores with life insurance sales leading the way followed by motor, health and travel. The reason for this growth can be attributed to the fast growth of online players, complemented by increasing trust within the customer community buying insurance policies online. Savings, in terms of reduction of premiums and easy availability and access to policy related details have also acted as major growth boosters for the sector.

The online Insurance market witnesses a healthy mix of customers from lower income to higher income segments. Majority of customers are from the low-mid income segment which include mainly those earning under Rs 5 lakh per annum. People who earn between 5 to 10 lakh make up for 21% of online customers. Customers whose earnings are above 25 lakh account for 5 % of online customers.

Apart from this, the age profile of online insurance customers, not unexpectedly, is made up of persons between 26 to 35 years of age. They form 55% of the overall online buyers, followed by 36-45-years groups, which accounts for 19%. Moreover, it has been found that youngsters in the age group of 25 years and above prefer online services more as compared to senior citizens.

Of all the metro cities, Bangalore is at the top in the list of online insurance customers followed by Delhi, Mumbai, and Hyderabad. In the non-metros, Pune, Thane, Ahmedabad, Gurgaon, Ghaziabad, Lucknow and Jaipur collectively contribute to 27% of the online customers.

An online term plan is much more cost-effective as it works on the principle that the person making a decision to buy a plan is literate, have researched and made an informed choice and the personal information provided is completely accurate. Also, the final purchase cost is negligible as the product is available directly from the company website.

It has been observed that a term plan, when bought from an online insurance aggregator costs around 50-60% less than offline plans from the same companies having similar features.

However, a very important thing that should be kept in mind while purchasing a plan is that the cover and claim settlement depends on the authenticity and accuracy of the information given. Withholding information about any medical condition or other critical condition in an effort to lower the annual premium may result in complications or rejection of claims in future.

Hence, it is best to reveal things like pre-existing disease, habits, like consumption of alcohol and tobacco, etc, to ensure quick processing. An important point should be kept in mind that since the insurance plan has been developed keeping the online platform in mind, it may not be accessible for customers in all places except those residing in urban cities with good internet connections.

With the rapid proliferation of the online market, social media and various customer forums and sites, a buyer can get a lot of information and collective experience of other people and can check the company’s records including its financial information, customer satisfaction levels, etc.before taking a decision of going ahead and buying a policy.

To sum up, the online market is an enormous platform for you to get the best insurance deals even when buying a simple insurance cover. So start surfing, not just to plan your vacation but also for various insurance deals available through web aggregators.

Know More about Single Premium Term Insurance

Single premium term insurance policy is designed for those who want to buy a policy at one go. As compared to traditional insurance products, policyholders have to pay premium at periodic intervals for these policies.

It is a onetime payment solution for those who don’t want to go through the trouble of periodic payments. When the premium payment has been done, buyer becomes the policy owner with certain death benefits.

For single premium term insurance policy, policyholders don’t have to worry about paying any further premium payments or the lapse of your insurance if insured forget to make any payments.

All leading insurance companies in India offer this insurance for the benefit of their clients and customers can access some policy aggregator portals online to know which one is suitable for your needs. If you have a lump sum fund with you, then it is advisable to opt for a single premium term insurance policy.

Under this plan, policyholders get financial security against taxes. When person invests in this insurance product, he or she is given exemption of up to Rs 1.5 lakh. In case something happens to policyholder, his or her beneficiary would get the insurance money which is absolutely tax free.

But, insured is eligible to avail the tax exemption benefit only once for this policy because policyholder is investing in this insurance for one time only. As you paid up in full upfront for this policy, so you don’t have to worry about the plan getting lapsed if you forget to pay the premium amount.

Your policy is completely valid till the entire policy term and reduces the sum assured when the policy period comes to an end. It generates cash value. Person is building a financial asset for himself or herself when he or she makes the premium payment for single premium term insurance. It comes in handy if you want to apply for loan and can be used as collateral against loan.

TERM INSURANCE

Click here https://www.bajajallianzlife.com/term-insurance/isecure-insurance-plan.jsp  For more details about Presenting the iSecure Insurance Plan; a level cover term assurance plan that secures your family's financial needs by giving you a high sum assured at a low cost.

Insurers want to have assistance model for buying insurance online

Insurance companies have requested the Insurance Regulatory and Development Authority (IRDA) to have an assistance model in buying insurance online. This model will not only increase web traffic but also improve quality of business.

At present, direct business done through the online channel contributes less than 5% of the total business of the insurance companies.

Now not just term insurance plans, but all types of products are available online. However, all customers are not comfortable buying it online since product structures are difficult to understand. To resolve this problem, insurers want to have an assistance structure.

This model will have assistance services to individuals who require help during purchase of an insurance policy online. Dedicated personnel will be appointed who will take care of all queries arising during an online purchase. This model would be distinct from the call-centre individuals who assist customers in grievance redressal and claims processing.

At present, Online Term Insurance Plans In India  purchased online has a much lesser premium due to the lower distribution costs and absence of any third party in the transaction. Hence, products are custom-made for this segment and are much simpler than offline products. Payments are done online and the policy documents are sent to the policyholder. With digital signature acceptance in insurance policies also being discussed, policy purchase will fully go online.

For small ticket policies with premiums in the range of Rs 5,000-15,000, customers are comfortable paying online. However, in large ticket size policies with a premium of Rs 25,000 and above, individuals are reluctant to pay online. Therefore, an assistance model would be helpful, wherein the customer could be assured of the security features and inscription or in some cases, these persons could be deployed to collect the premium.

Indians Consider Term Insurance As a Waste Of Money Survey

Term insurance, the most effective and cheapest instrument for meeting an individual’s financial goals, is considered a waste of money by most Indians.

According to a report from Espirito Santo Securities, term insurance policies have the highest lapsation rate.

The lapse rate in terms of premium was 19% for term insurance policies, 11% for Unit-Linked Insurance Plan (ULIPs), 6% for par-whole life, par-endowment, 4% for non-par endowment, and around 2% for pension plans.

Term insurance policies are low ticket policies that offer protection for a specific period of time. It pays a benefit to nominee only if the policyholder dies but in case the policyholder survives the tenure of the policy, nothing is paid to him or to the nominee.

Contrary to the conventional wisdom, people want returns from their insurance a policies and see term insurance as a waste of premium, said the report titled a Life Insurance Thematic: Lets not give up on life yet.

The study said that there is a direct correlation between lapsation of insurance policies and the age of the policyholder. Young people (18-27 years of age) uncertain of their cash flows were seen lapsing their policies more than people between 43-57 years of age. Also, lapsation decreased as the size of the policy increased.

Almost 50% of the term insurance policies bought lapses in the initial two years. This is largely because individuals see life insurance as savings tool rather than a protection tool.

Another reason is that the agents earn low commission in case of term insurance plans, compared with traditional plans and ULIPs. So the follow up from agents is low leading to high lapses.

Agents earn 15% of the premium as first year commission on term insurance plans (which are low ticket sized) compared with 35-40% first year commission in case of ULIPs and endowment plans, which have a higher ticket size.

Online Term Insurance for Senior Citizen

Old age should not be a burden rather; it should be that stage in life where you reap the benefits of all the hard work and financial planning that you did in young age. With many insurance companies coming out with specific plans for the senior citizens, including term plans, old age no more has the uncertainties associated with it that it used to have earlier. All you need to check your eligibility and apply. Today, an old person can secure his/her future easily by getting financial coverage with the help of a term insurance plan. Basically, term insurance plans do not look for medical checkups from the applicant. Numerous plans are there in the markets which have a simple application process where you can easily apply. All you need to do is to fill a simple form related to health, in which you need to provide your medical conditions and take care of some minor documentation work.

With the help of a good term insurance plan, you can secure your family financially, irrespective of the fact if you are present for them or not. Life or term insurance plan permits old age people to keep something aside for their funeral arrangement as well, apart from helping their near and dear ones at the time of any necessity.

As Term Plans are available at low prices, it becomes vital to compare quotes and choose the best plan which suits your need suitably. By comparing, you ensure that what you get is what you wanted and it just takes a few minutes to make an informed choice. The online medium offers quick access to all kinds of term insurance plans from the comfort of your home.

It may be possible that in due course of time; the term insurance plan bought by you may require certain changes. Buy an insurance plan at an early age which can provide you the required protection at a low cost. With a term insurance plan, you need not worry about putting aside your savings for taking care of essential requirements.

There are many companies who are offering affordable term insurance plans to choose from. Some companies are selling plans to the people of age group 50 and above whereas there are few who have specific term insurance plans for senior citizens in the age group of up to 85 years. Apart from term insurance, there are two other forms of plans namely, Whole life insurance and guaranteed life insurance.

Under the former, there is no fixed policy period and benefits are provided to the insured till the time of his/her death. Upon death, the payments get transferred to the designated nominee.

Guaranteed life insurance allows the senior citizens to buy a policy regardless of their age and it does not require prior health related investigations. Generally, high risk individuals are covered under this plan who have had health issues and are not covered by any other plan.

Nowadays, it’s easy to find plans as per one’s requirement as a number of private players have emerged in the segment who want to make their presence felt. Seeking online quotes is the best way to move forward and enjoy peace of mind in your old age by saving on both time and money.

Source: http://blogterminsurance.tumblr.com/post/144901307771/online-term-insurance-for-senior-citizen

Online Term Insurance

https://www.bajajallianzlife.com/term-insurance/isecure-insurance-plan.jsp

Best Term Life Insurance Plans-Online Policy in India 2015-2016 -Comparative review

I often get asked “what is the one decision which affects or improves a person’s financial life”. My reply “Term Life Insurance” .This will be the best investment or financial decision one can make in your life.

Have you have just started earning or have a family? You should spend your first salary on the best term life insurance policy you can find. Agreed you can’t enjoy the benefits of your term plan. But it secures the financial requirements of your family when you’re gone.

I don’t want my daughter’s education or my mother’s medical treatment to be unavailable because of lack of money. I also don’t want to burden/thrust my wife with these responsibilities.

Considering how important family is to me (and I assume same for you), a term plan becomes inevitable. To have peace of mind that the claim will be paid, you need to choose the best. So which is the best term life insurance plan in India ?.Let us try to brainstorm that.None of us knows what might happen even the next minute. If your child, life partner or your parent(s) depend on your income then you need to have Life Insurance plan.

In this post, let us shortlist and understand some of the best Online Term Insurance Plans in India. These best Term Life Insurance plans can be purchased through online.

What is “Term Life Insurance Plan?”

Term insurance is the simplest and most fundamental insurance product. Best Term Insurance Plan are designed to ensure that in the event of the policyholder’s death, the family gets the sum assured (the cover amount). Term plan provides risk coverage for a certain period of time (policy term/duration). If the insured dies during the time period specified in the policy and the policy is active – or in force – then a death benefit will be paid. It is the cheapest form of Life insurance in terms of premium.

Online Term insurance Plans are,

Cheaper than conventional plans like money back life insurance or endowment plans (or) offline term plans. Online term insurance plans are roughly 30-40% cheaper than the offline plans.

The entire application submission process happens online through the company’s website. So, it is hassle free.

You may not be influenced by an agent/advisor during the buying process.

Source: http://blogterminsurance.tumblr.com/post/144852594836/best-term-life-insurance-plans-online-policy-in

Does Cheapest Online Term Insurance Policy Available For All

People are becoming financially literate and now understand the need of having a term insurance plan. Online term insurance plans have become more attractive as their prices have fallen by 40-50% due to demand from consumers and rise in competition among insurance companies.

You can either buy an online term insurance policy from insurer’s website or from online comparison sites (web aggregators).

But biggest question is that on which factors your decision should be based on, whether you should go for the cheapest term insurance plan or with the insurance company having highest claim settlement ratio.

The term insurance policies are similar despite the attempts to create features such as deferment of policy proceeds (periodic payments instead of lump sum payment) or some riders that provides for additional covers on payments of additional premiums.

In recent times, almost every large insurer has a comparable claim rejection ratio. Besides, new amendment to Insurance Act, life insurance companies cannot reject any claim after three years on any grounds. And if you are making full and complete disclosures in your proposal form, insurer can’t reject even early claim. So, low claim rejection ratio as a parameter is for choosing an insurance company is no longer very relevant.

Some insurers have dropped their premiums very low but now have very tough norm for those who will be eligible for these premiums. So, the cheapest Online Term Insurance Plans In India policy is not necessarily available for you.

In most cases, customers would actually end up paying higher than the standard premiums so the lowest published premiums are just illusory. After medical test, customers are asked to pay higher premiums for issuing policy or their proposals are rejected.

If you refuse to pay additional premiums then you have to go through the whole proposal and medical examination again and have to disclose the fact that his proposal was rejected in the past.

Rejection of proposals will further increase as insurers have become extra careful in issuing life insurance policies because of recent amendments that disallow rejection of claims on any ground after three years of policy issuance.

This problem is more acute in the critical illness policies where outright rejections are wide spread and where it is even more of a challenge to motivate the consumer to persist with the process of getting this policy.

No data is available on the proposal rejection percentages or the percentage of proposals in which a particular insurance company has proposed an increase in premium over and above the normal premium. Hence, there is a need that Insurance Regulatory and Development Authority of India (IrdaI) should collect and disseminate this kind of data so that consumers can make an objective decision on their insurance provider.

Till then, consumers can look forward for online web aggregators as they make money on actual issuance of the policy and they will work harder for a company that is actually interested in issuing policies.

Mistakes to Avoid While Buying an Online Life Insurance Policy

Due to the amplified penetration of internet in India, buying an online insurance plan is faster, convenient and much cheaper than buying through the traditional sales channels. All you need a steady internet connection to fulfil your insurance needs. The technological superiority provided by the online platforms makes the application process of insurance smoother. Generally, the online insurance providers offer live chat facilities and toll free numbers to ensure that the customers don’t face any problems while purchasing an online policy. However, in order to have a smooth post purchase experience, make sure you avoid these common mistakes while buying online insurance policies:-

1.       Providing wrong information or omitting facts: –

When you fill up the physical insurance policy forms, an insurance agent will always double check the details that you write down. However, while filling an online insurance application, there might not be any agent around to oversee the information. Nevertheless, the function of this information remains the same during the claiming process. If the information that you provided is found to be misleading or faulty, you claim might be rejected entirely. Most of the insurance providers deny insurance to policyholders who provided the wrong information. Sometimes, providing wrong information or omission of facts may also lead to lawsuits if the policy holder has distorted important facts. Therefore it is very important to be upfront about every little detail and get all the facts right as even a minor lie can lead to rejection of claims.

2.       Not doing enough research before buying: –

 As there are several types of life insurance policies available in the market, it is very important to undertake adequate research before buying. There are many aggregator websites that let you make quick comparisons of the costs and features of different policies. If you buy an insurance plan without proper research, you may most likely end up with a policy that is average and does not suit you needs. With proper research, you will be able to understand the features of the policy entirely and purchase the one that is most suitable.

3.       Overlooking policy renewal: –

When you take up a life insurance policy through an insurance agent, he will remind you regularly about the premium renewal dates. However, in an online insurance policy you need to remember the dates in order to save your life insurance policy from lapsing. Another way is to have your bank renew the policy at a scheduled date and month. On the other hand, make sure you have enough money in your bank account.

4.       Overbuying Insurance: –

 Most of the people tend to overbuy Online Term Insurance Plans In India because of the low premium rates. If you are paying for coverage that is not needed, it becomes a wastage. For instance, iMaximize plan from Life offers extensive returns with life cover. Opting for an additional insurance plan along with it will only put pressure on your monthly budget. Therefore, while buying online policies, don’t let the low premiums be the conclusive factor while buying an insurance policy.

How to buy term life insurance online?

Buying insurance is seen as time-consuming even cumbersome. So while individuals appreciate the importance of taking insurance, the formalities can be a put-off, making them postpone the decision.

Online saves the day

Thankfully, we are in an age where practically nothing need be time-consuming and cumbersome. The internet has taken care of that. You can now browse insurance company websites and buy online term insurance plans, which is a popular and affordable form of insurance.

Why term plans

To revisit the attraction of term plan for individuals –online term plans offer the cheapest medium of availing life insurance where one can get a high life cover at a relatively low premium.

How the internet is spreading insurance

The internet has graduated from being a mere provider of information to a key distribution channel for service providers like insurance. It offers a fast, efficient, cost-effective and transparent mode of delivery. While traditionally, insurance companies have relied on consultants, agents and brokers, in addition to their own in-house sales support, this has proved to be both expensive and inefficient. The turnaround time in getting an individual insured is high and there is a burden to service the agent through regular commissions over the life of the policy.

The internet has helped insurance companies iron out both time and cost inefficiencies. They now engage insurance-seekers directly through company websites. Insurance is ‘delivered’ seamlessly and since there is no agent involved, there is no commission to be paid. This makes selling insurance cheaper and the individual benefits by paying a lower premium vis-à-vis a similar policy sold offline.

How to buy online term insurance plans

Buying the best term insurance plan in India online is a simple, streamlined experience that will make you wonder why it was not discovered earlier.

While the process of buying online term insurance varies across insurance companies, it broadly involves the following steps:

1.       Log on to the company website for e.g. log on to www….com  and click on the banner advertising online insurance

2.       Enter the sum assured

3.       Choose the policy term

4.       Choose the premium paying term

5.       You will see the premium amount based on your inputs

6.       Select your bank to make the premium payment

7.       You will see an acknowledgement on a successful transaction

8.       Within a period of usually three weeks the insurance company will come back to you on whether or not your insurance policy has been approved by its underwriting team

9.       Subject to approval you will receive a soft copy of the policy which will be followed by a hard copy

The mark of a good online experience is fewer clicks and website speed. The lesser number of clicks necessary to buy insurance, the simpler it becomes for users. And slow website speed with higher response time while navigating to the bank website for premium payment, can be a turn off.

Top reasons to buy insurance online

With the ongoing reforms in the insurance sector in India, there are dozens of life insurance service providers operating in the country. Every company has a bouquet of products and each one of them try to put forth their offerings. Today most companies are promoting online channels to promote their products.

In this scenario when the companies advertise their products through this widely used media, it becomes confusing for a person who wishes to buy term insurance. Here are the top reasons which you must gauge in order to arrive at a prudent decision.

Right information: Buying insurance through agents is fraught with wrong information. Agents have their own vested interests in promoting certain set of products. There may be different reasons why they promote them. It may be higher commission, target-related benefits, so on and so forth.

But when you buy insurance through online media, you get the information directly from the insurance company. This information is openly available in the public domain. If you have any queries, you can simply drop an email to the customer care cell of the company and they reply to you. You can also feed in your phone number for a call back from the company.

Comparability: The proliferation of online media has paved way for web aggregators which provide genuine information on the various insurance products without any prejudice. They also provide efficient web applications that help compare the various insurance products. Before you go for online comparison, you may rather shortlist a few insurance policies so that you compare them rationally in one go.

This is unlike working with agents where you are supplied with a very limited amount of information. They are mostly having one or two insurance companies and thus they avoid talking about other products.

Cost efficient: Needless to say that online buying is cost efficient. But you may say that it is cost efficient for the company. How does it matter to you? It does – because ultimately the benefit is passed on to you in some way or the other way.

Also, it is very effective in terms of keeping track of your investment in insurance. You get an Online Term Insurance Plans In  India through which you can check the updates related with your insurance policy.

Higher sum assured: There are chances that you may not get lower premium amount on insurance policy. You may feel that there is no benefit in buying insurance through online mode. But there may be indirect benefits associated with online transaction. You may be receiving higher amount of coverage in the same amount of premium. 

Source: http://www.policyx.com/blogs/part-i-top-reasons-to-buy-insurance-online/  

Which Company To Choose To Buy Term Insurance Plan

Term Insurance Plans are the best plans to cover risk of life. Term plans not only provide high risk cover but with less premium in return. With increase in the Insurance companies premium for term plans differ very much. Difference in the premium can be double between lowest to highest, this puts the person taking insurance in dilemma of which company is best to take Term Insurance Plans.

Key to choose the company to take Term Insurance Plan is not the premium is be paid, but the performance of the company toward claim settlement. Term plans do not provide any returns to policy holder if survives till the end of the term, it is only taken to provide the financial security to you loved ones. What if the claim is denied to you nominee?

Following things to be kept in mind before choosing right insurance company to buy term plan

Claim paid percentage must be greater than 90% for both numbers and amount.

Don’t see the number of claim settled, but also the amount of claim settled too. It shows whether higher sum assured plans are settled or not.

See if higher amount is pending at the end of the year, Means Company is taking too much time to settle the higher sum assured plans.

Above data do not show reason for rejection of claim, rejection can be due to genuine reasons, therefore data should be used wisely to arrive any final conclusion.

Do not go for low premium only.

Older a bigger companies have good claim settlement ratio and faster settlement process too.

Choose a company with a better network.

If you are planning to buy the plan online, then make sure the office of the insurer is in your town or very near to you to avoid any inconvenience later on.

Read the terms and condition as soon as you get the policy bond.

Your decision to take the Term Insurance Plan is to secure the future of your loved ones when you will be not with them, so take right decision while taking the term plan so that they don’t have to suffer or denied to take the claim amount.

Source: http://blogterminsurance.tumblr.com/post/143572757586/which-company-to-choose-to-buy-term-insurance-plan

What is Term Insurance?

Term insurance can be defined as a type of insurance that is availed for a certain period of time or a fixed term (number of years). The basic differentiating feature of term insurance is that unlike other types of life insurance policies, a term insurance policy is less expensive since it does not have any cash value. The policy comes useful only if the policyholder dies within the timeframe during which the term insurance policy is in force.

Term insurance policies are offered by almost all major insurance providers and these come for various terms like 10 years, 20 years, 30 years etc. The most significant point about term insurance policies is that most of these policies have a built-in feature to get converted to permanent life insurance policies irrespective of the state of health of the term insurance policyholder.

How does Term Insurance Works?

 What is Term Insurance?

A term insurance policy can be considered one of the most traditional forms of insurance. To understand how it works, you can look at it in these three situations:

Buying the policy: To be able to buy a term insurance policy you don’t need to put aside tens of thousands of rupees every year. Many of the insurance policies can offer you a sum assured of up to Rs. 1 crore for a premium that could be as little as about Rs. 10,000 per annum (These are indicative figures. The actual premiums may differ depending on the sum assured and the insurance providers).

Keeping the policy: Just like any other insurance policy, you pay the premium towards these policies at a frequency chosen by you. These premiums can be paid every month, every quarter, every 6 months or once a year. They can also be paid as a lump sum instead of being paid at regular intervals.

Redeeming the benefits: Term insurance plans don’t typically come with any maturity benefits, except for term insurance with. Their main objective is to provide life insurance cover and that is exactly what they do. In case the policy holder passes away, the person who is named as the beneficiary of the policy will receive the sum assured.

The way it works is also one reason why you will notice that a lot of the time insurers refer to these plans as pure protection plans. There are no frills attached to the plan. You pay the premium and you get a fixed sum if case something happens to you.

How to choose the best term insurance plans?

When it comes to choosing the ideal term insurance these are the steps that you should follow.

Step 1: Calculate how much you want the sum assured to be.

Step 2: Decide if you wish to take a policy with return of premium or not.

Step 3: Choose an insurer that will offer you the sum assured you want.

Step 4: See the premium that each insurer will offer for the chosen amount.

Step 5: Check the claims settlement ratio of the insurer. This is a step that many people tend to ignore but is absolutely critical to getting the right insurance policy. This is information that tell you the percentage of the claims that the insurer has honoured vs the number of claims they received in a given year.

Step 6: Compare the information you have gathered and choose the plan that suits

Features & Benefits of Term Insurance:

The features and benefits that are offered by term insurance plans can differ from one insurer to another. They can also differ from one type of plan to another but there are some features of benefits that remain the same no matter who offers the policy. These are:

·         Regular term plans and TROPs offer very high sum assured for a very reasonable premium.

·         There is no limit on the maximum sum assured as it is something that will depend on the insurer’s willingness to underwrite really large sums.

·         The policies offer premium payment options of single pay, regular pay and limited payment.

·         The payment of premiums, in case of limited and regular pay plans, can be monthly, quarterly, semi-annual and annual. However, in the case of monthly payments, the insurers may require you to pay the premium for the first 3 months as a lump sum.

·         They come with a tenure than can be as high as 20 years or more, depending on the insurer.

·         With a return of premium policy, some insurers will offer 105% of the premiums paid as the maturity benefit.

·         A lot of these plans can be bought online too, which negates the tedious task of meeting an agent and fixing meetings.

·         All Online Term Insurance Plans In India are cover by Section 80C of the IT ACT which means that the premiums paid for them are eligible for income tax benefits.

·         The benefits received from term insurance plans can be covered under Section 10(10D) of the IT Act will also be eligible for tax benefits.

·         Some insurers also offer rebates if policyholders opt to go in for high sum assured.

·         Many of the insurance providers offer lower premium rates for those who maintain a healthy lifestyle.  

Source: https://www.bankbazaar.com/insurance/term-insurance.html  

Five Reasons To Choose Online Term Insurance India

Life is awash with things and events that bring us joys and sorrows in equal measures. No one is inoculated from the vagaries of life. To secure the financial future of your loved ones when you are not around, having a life insurance plan is critical.

Different families have different kinds of needs, and to safeguard their future in the absence of the breadwinner, insurance companies have launched numerous life insurance plans. The simplest among them is a term plan.

A term plan is designed to protect the financial health of your family when you are not around. It will pay your loved ones adequate amount of sum assured in order to meet the basic financial needs and assuage the lasting impact of the financial loss in the event of the death of the insured.

A simple term plan offers extensive life cover options for a reasonable amount of premium. It provides adequate income replacement to the loved ones. That’s why buying a term plan is largely considered an integral part of individual financial planning exercise.

With the rapid evolution of the internet, buying a Online Term Insurance India has become easy. You can simply visit the insurer’s website, generate a quote, and buy an insurance plan online. Following are the five reasons why you should opt for this medium:

1.       Low Cost

When it comes to purchasing anything, the first thing that crosses your mind is its cost. Insurance products, be it a life or general insurance policy, tend to be up to 50% cheaper online than their offline counterparts. This is because you can purchase from the insurer directly; there is no involvement of any intermediary. Thus, the channel sales cost are not passed down to you. This makes the policy cheaper.

2.       Efficient Process

In the online process, you are required to fill details before generating the quote. There is no physical form filling as such, where there are chances of errors. Moreover, the sophisticated user interface and process implemented by the insurers avoid the chances of errors. For instance, if any of the crucial details such as email, mobile, or date of birth goes wrong, then the website will highlight the respective field.

3.       Easy Comparison

In order to get the best deal on any product, it is recommended to research and compare. Same is the case with term insurance plan. With websites, you are easily able to browse through different products, compare their benefits, the exclusions, premium options, riders, and discounts. This helps in taking a better informed decision.

4.       Higher Transparency

Whether you are choosing a simple term plan or a term plan with guarantee of monthly income, insurers have the details of each and every plan on their website. You can browse through the products to know all about the plan—its key offerings, benefits, the extent of cover, eligibility criteria, procedure of application, claim filing process, and much more on the website. On the other hand, rarely will an insurance agent offer the complete brochure of products. This broaden your perspectives, thereby helping you choose the best term plan that suits your requirements.

5.       Quick Customer Support

Unlike the offline mode, the online mode is fast, efficient, and easy to use. There is a dedicated customer support team to assist you with a variety of queries. Moreover, the insurers maintain a knowledgebase of articles that help you choose the best life insurance plan. For example, things to look for while buying insurance plans, and other such helpful reference material to help you pick the right product. Such kind of support is not readily provided through the offline medium.

These are the five key benefits of buying a term plan online. So why approach an agent when you can easily buy a policy online and secure your family’s future?

Does Cheapest Online Term Insurance Policy Available For All

People are becoming financially literate and now understand the need of having a term insurance plan. Online term insurance plans have become more attractive as their prices have fallen by 40-50% due to demand from consumers and rise in competition among insurance companies.

You can either buy an online term insurance policy from insurer’s website or from online comparison sites (web aggregators).

But biggest question is that on which factors your decision should be based on, whether you should go for the cheapest term insurance plan or with the insurance company having highest claim settlement ratio.

The term insurance policies are similar despite the attempts to create features such as deferment of policy proceeds (periodic payments instead of lump sum payment) or some riders that provides for additional covers on payments of additional premiums.

In recent times, almost every large insurer has a comparable claim rejection ratio. Besides, new amendment to Insurance Act, life insurance companies cannot reject any claim after three years on any grounds. And if you are making full and complete disclosures in your proposal form, insurer can’t reject even early claim. So, low claim rejection ratio as a parameter is for choosing an insurance company is no longer very relevant.

Some insurers have dropped their premiums very low but now have very tough norm for those who will be eligible for these premiums. So, the cheapest Online Term Insurance is not necessarily available for you.

In most cases, customers would actually end up paying higher than the standard premiums so the lowest published premiums are just illusory. After medical test, customers are asked to pay higher premiums for issuing policy or their proposals are rejected.

If you refuse to pay additional premiums then you have to go through the whole proposal and medical examination again and have to disclose the fact that his proposal was rejected in the past.

Rejection of proposals will further increase as insurers have become extra careful in issuing life insurance policies because of recent amendments that disallow rejection of claims on any ground after three years of policy issuance.

This problem is more acute in the critical illness policies where outright rejections are wide spread and where it is even more of a challenge to motivate the consumer to persist with the process of getting this policy.

No data is available on the proposal rejection percentages or the percentage of proposals in which a particular insurance company has proposed an increase in premium over and above the normal premium. Hence, there is a need that Insurance Regulatory and Development Authority of India (IrdaI) should collect and disseminate this kind of data so that consumers can make an objective decision on their insurance provider.

Till then, consumers can look forward for online web aggregators as they make money on actual issuance of the policy and they will work harder for a company that is actually interested in issuing policies.

Term Insurance

Click here https://www.bajajallianzlife.com/term-insurance/isecure-insurance-plan.jsp     For more details Buy term insurance plan online with Bajaj Allianz iSecure. iSecure term insurance plan will help you secure your family's financial future at an affordable cost.

Term Insurance Things To Consider Part 2

To pick the right product, you need to pick the right insurer for you. Here are a few points to guide you with this.

1.       Premium: While this is what you’re directly concerned with, premium is only the start of the story. The product offering should match your special needs and going by the premium alone to make your decision will mean you might not make the most accurate choice as regards your insurance policy.

2.       Insurer‘s Track Record: It’s extremely important to look into the insurer’s track record of service. For example, how easy and hassle-free is the claim process. What the average duration is to settle claims (We are collecting relevant data for this and will make it available to assist our readers). Keep in mind the insurer’s general reputation in the market but pick what is best for you rather than go on brand name alone. Claims ratio might seem a tempting way to pick a provider, but given the fairly recent nature of private insurance in India, it isn’t the best way to judge how likely you are to receive your money.

3.       Benefits: Check what benefits are available in comparable policies. See if you can get relevant additional riders which add to the extent and nature of protection that you get. Pick an insurer that covers most of your needs at minimal additional cost.

4.       Exclusions: Review this part of your potential policies to make sure that you won’t miss out on anything that you were looking for after paying for a product.

You don’t need to worry about the insurance company going bust or the company taking your premium and never providing any service because insurance is a tightly regulated industry which makes sure that companies operate in a way that is consistent with the insured individual’s best interests.

As is the insurer’s duty to be fair with you, you should not keep any disclosures to yourself as it is important that the insurance company knows exactly who they will serve . Trying to bend the rules will give the insurer the right to dismiss your claim on the grounds of suppression of material facts.

Lastly, buying an online insurance product means products are priced lower than their offline variants given that the cost to the company to provide term assurance is much lower than for a similar offline product.

Lastly, on our site, we provide you with all the information that you need to make the best decision about term insurance.

And if you want, we will be happy to help you need in deciding on a product based on the easily available information at PolicyMantra.com, in case you need assistance.

We hope this article helps you in picking out a great term insurance product to meet your needs!

Term Insurance: Things To Consider, Part 1 

Source: https://www.policymantra.com/blog/term-insurance-things-to-consider-part-2/

Term insuance or whole life

Click here https://www.bajajallianz.com/Corp/term-insurance/isecure-insurance-plan.jsp For more details Buy term insurance plan online with Bajaj Allianz iSecure. iSecure term insurance plan will help you secure your family's financial future at an affordable cost.