Majority of insurers have hoped onto the online life insurance bandwagon. A direct comparison of premium is the best way to find the least expensive term insurance policy. Insurance plan with a pre-set death benefit is comparatively more affordable as compared to the regular term plans bought through insurance brokers in India.
The advantage of online life insurance is that customers can save on the commission paid to the insurance agent out of their premiums paid. Generally, online plans help policyholders save up to half the premium paid for offline products.
When buyer only considers premium as the main factor, then the beneficiary of the policyholder would receive the sum assured in case of insured’s death.
Here, policyholders should know that declaration of existing health conditions is mainly responsible for successful claim approvals. Customers must consider few other factors which are mentioned below:
1. Maturity Age given – Life insurance companies in India provide a maximum maturity age between 65-80 years of age. People need to understand that if the maturity age is higher, then the probability of demise and better utilization of term plans is also more.
2. Higher Policy Period – Earlier, life insurance policy period used to be nearly 25 years. Now, the scenario is changing. Insurance companies in India give a term of around 35-52 years. If you opt for the higher term, you don’t need to buy another policy at old age in case you exhaust the period of the first plan bought early in life.
3. Life Insurance Premium Amount – Usually, the premium amount quoted online is an indicative premium and your actual premium may escalate when your health checkup disclose all your health status. Therefore, know your actual term insurance premium before choosing a product.
4. Claim Selection Ratio – If you select an insurer with high claim settlement ratio, then the chances of claim approval is more. Search for the insurance company with strong financial support and trustworthy in terms of claim settlement ratio.
5. Caution – Give right information related to health condition because hiding important details could result to claim rejection. Never depend on your agent for filling details for you. Do it by yourself. Inform the beneficiary or nominee you have mentioned in the term plan you have bought. Don’t get lured by attractive deals.