Why should you Compare Term Insurance Policy before buying it?

1. Why should you Compare Term Insurance Policy before buying it? BimaKaro.in

2. online term insurance plan. Acceptance of insurance as a life coverage product is now more than ever before. Earlier, people contributed to life insurance because of fear, but now they do this to enjoy peace of mind. People are done with the fear of death, and they are motivated to explore life. In this changing environment, web aggregators and online insurance brokers have also played a significant role in increasing insurance awareness. Online players have also created ease for insurance buyers to compare different features of life insurance policies online. However, many people do not still know about comparison process and choosing a term plan. Let us start with a basic understanding of the term insurance plan. Term insurance is a pure life product that provides you with the death cover at a low cost. As the name suggests, it is for the specified term. If you buy a basic term plan, it offers a cover for a predefined period like 75 years, 85 years, 100 years, etc. Based on your requirement, you can choose to contribute to it.

3. Term Plans Level Term Plans The most basic form of term insurance is a level term plan. This is the most cost-effective term plan, as the premium decided at the inception remains fixed or levelled for the entire tenure. Ideally, your life insurance cover should address your two primary objectives after you; first, your family’s lifestyle and second, your debts repayments. Level term plan simply does that by providing you enough cover at a low price.   TROP (Term Plan with Return of Premiums) Term Insurance Plan offers the option of return of premiums. This simply means that an individual will get contributions back if he/she outlives the policy tenure. Many buyers are apprehensive about starting a term policy just because they think their contributions will not yield anything if they survived the tenure. But this is not a concern anymore with TROP option. 

4. Best Term Plan Increasing Term Plan Increasing term plan gives you an option of increasing cover with the increasing age. This plan provides you with the benefits of increased sum assured to fulfil your financial goals or to have your cover amount adjusted against inflation. Increasing term plan helps you to adjust cover as per your life stages. For example, an unmarried individual would be okay with less sum assured, but after getting married and with children, he /she would need high cover to ensure their dependents are safeguarded. Decreasing Term Decreasing term plans offer a reduction of the life cover with the increasing age. The contributions to this plan are mainly made to cover the liability of a home mortgage. For example, if an individual has a mortgage or debt with a tenure of 20 years or more. He/she can buy a decreasing term plan. With the reducing debt over the years, the sum assured of term insurance reduces coherently. Therefore, this plan helps you ensure that your family is protected against your mortgage or a long-term debt, even when you are not there. 

5. Online term Insurance Plan Convertible Term Plans Convertible plans offer you an option to convert a term plan into any other like an endowment at a future date. Terms and conditions are also dependent on the insurance product that you buy. The convertible plan is helpful if you need a life cover for some years and later want to switch to a plan with maturity benefits.     How to compare term insurance policy? When you plan to buy term life insurance, you need to do a bit of research to understand. You need to compare term insurance policy to know which product best suits you. You can log on to www.BimaKaro.in, enter details like name, gender, life stage, date of birth, mobile no, education, habits (smoking, alcohol, etc.) and income to see the list of plans available for you.  A comparison will clearly show the difference between the plans. This feature offers you the contrast between the terms, pricing, tenure, and coverage amount. Many different online platforms also provide details of different riders available with the plans.

6. Buy Term Insurance Claim Settlement Ratio One of the most critical points you should consider while buying a term insurance plan is the claim settlement ratio. The claim settlement ratio is a percentage of claims approved by an insurance company against the specified period’s total request. Below are the claim settlement ratios of some of the best term insurance plans: Source:www.Bimakaro.in

7. Term Plan Solvency Ratio Another critical aspect to consider while comparing a term life insurance plan is the solvency ratios of different life insurance companies. The solvency ratio measures a life insurance company’s ability to meet its debt obligation if it faces insolvency. In simple terms, if the solvency ratio of a company is lower, there is a high risk of default on obligations, if the company is under stress. The solvency ratio calculation is provided below: Solvency Ratio = (Net Income+ Depreciation) / Liabilities *Source: www.Bimakaro.in

8. compare term insurance policy online Premium Costs It is always all about money! This matters when you buy a term plan. When you compare term insurance policy online, you must see what premiums are offered by different insurance companies. You must choose a plan that suits your pocket. Also, consider the frequency of the premiums as per your paying capacity. Some people feel comfortable paying monthly premiums, and others feel comfortable paying quarterly, half-yearly, or annually. Premium frequency options may differ with insurance providers. Therefore, you should assess and choose an affordable plan.  Eligibility Criteria and Policy Issuance Process It is further imperative to understand if you are eligible to buy a term policy or not and what documents are required to buy a policy. Term insurance underwriting is done based on your income, education, your medical condition and age. When you compare term insurance policy online, you should ensure that your coverage is as per your requirement. Many term policies offer telephone medical check-up, but this is based on the declarations that you have made about your health. In some cases, insurers will demand your medical tests.   Necessary documentation and KYC requirements include PAN Card, aadhar card, address proof, three-month salary slips / ITR 6 months bank statements, etc. 

9. Term Insurance Plans in India Best Term Insurance Plans in India To compare the best term life insurances available in India, you can simply log on to the website www.BimaKaro.in and provide the necessary details to compare the plans available.  Below is the comparison of the top three insurance plans:

10. Bimakaro ** This comparison has been done assuming Geder: Male, Age: 39 years, Non Smoker, Income of 15 lakhs Comparing and buying a term insurance plan is easy. You just have to log on to the websites like www.BimaKaro.in, compare and complete the journey for purchase. It is easy and matter of a few minutes.