Online term insurance should be an important part of your financial strategy if you have family. However, selecting the best plan is important to make sure that the main purpose is completely fulfilled. Below are few guidelines on purchasing the insurance right way:
• Calculate the Insurance Amount
Some people find it difficult to calculate the exact amount needed even if they know the requirement of term insurance online. In case person mis-calculates, he or she could end up putting his or her loved ones in hassle. The amount is based on number of dependents, partner’s earning, children are young or not, person’s assets and liabilities, other income sources etc. Do not forget to consider your standard of living as well as future financial needs.
• Cost Factor
While buying an online insurance policy in India, remember to know about all the charges applicable, such as mortality fees, rider charges, fund management charge, administration fees and premium charges. Recently, IRDA declared various changes related to these charges to make plans more customer-friendly. Purchasing online policies are more affordable than offline way. Compare online products available in the Indian insurance market to know whether one company is being unreasonably expensive.
• Check Insurer’s History
People buy insurance to protect them and their families against any unexpected events. Check about the insurer with your family, friends, colleagues and relatives. Review the insurer’s claim settlement ratio against the number of submitted claims. Always do the essential research.
• Check the Riders
Many insurers offer riders like accidental death rider that would double the coverage of term insurance in case the death is caused because of an accident. Therefore, read the policy disclaimer carefully to make sure that it could help you in the future. Review the coverage amount, term period, deductible charges etc.
• Don’t Buy Too Many Policies
Do not buy a policy blindly just to avail tax benefits. Sometimes, handling too many policies become really difficult. Hence, insurance experts suggest to opt for the essential plans to avoid late pay charges and lapsation.
• Take Help of a Professional
Sometimes, you don’t have enough time to do the necessary ground work. So, take guidance of a certified financial planner through the whole procedure and then take a decision.
• Review Insurance Requirements
Situations change with time, so take a close look at the insured amount. It is important to be aware of what you have purchase and the policy tenure. Review your term insurance needs before it lapses.