There's a wide variety of term insurance plans available online. It can be challenging for you to make the choice of the best term plan based on your needs. Especially in the absence of an agent, it is advisable to do your own cursory research before taking that next step. Here, we give you a few pointers on how to go about it.
First, comes the brand of the life insurance company you wish to deal with. It is advisable to consider established brands where you can be assured of service and assistance in case of need.
Second comes the cost of the plan. Once you have arrived at the life cover or sum assured you want to purchase, it is recommended to check the premium rates of 3 to 4 insurance companies you would be willing to consider. Do not get tempted into buying a policy just because of its low cost though as it may not offer comprehensive benefits that you are looking for. Also, while comparing the premium rates you must ensure that the comparison is done on the same coverage term and similar benefit amount.
One of the biggest doubts in the consumers mind is regarding claim settlement. It is better to opt for a company with high claim settlement ratio. Even if this means shelling out a few extra bucks, this would ensure that your hard-earned money does not go down the drain. This could also be seen in terms of claim pending ratio. Lower the company's claim pending ratio, higher are they likely to settle claims on time. Claim settlement ratios are usually available on the insurer's website or can be taken from IRDAI website. According to the IRDAI, all claims need to be settled in less than six months of time.
Next comes additional features and benefits like income payouts along with lump sum benefit in case of death or option to add riders which offer additional protection at nominal cost. It needs to be noted that with increase in life expectancy, you should choose a plan with a higher coverage term. Higher coverage term saves you from buying a new plan incase if the current policy expires. As people are more susceptible to ailments at an old age, the higher the maturity age of the plan, the better it is.
It is best to opt for an insurance company that offers a balanced mix of all the features mentioned above. Maxlife Insurance is a time tested brand that offers a cost competitive online term plan. With best in class claim settlement ratios and differentiated features like increasing income option, it is an option worth considering. Although, buying term insurance plan is certainly no child's play, but with a little thought applied into it, it is going to reap good benefits in the longer run.