How will You Purchase the Best Term Insurance Plan Online?

Purchase of online insurance is a win-win situation for both the insurers as well as the policyholders. Insurers save a lot of money due to the omission of the intermediaries and policyholders benefit from the same as premium prices come down. If you are considering a term insurance, going online would be the easiest way out.

Let’s have a look at the factors you should consider while purchasing the best term insurance plan online:

Do you wish to buy directly from an insurer online?

You could visit the website of a specific insurer that you have in mind and opt for a term plan. They will provide you with all the details of the plan and ask you some basic information. Once you fill these up and make the payment, the insurer will ask you for additional supporting documents along with any other forms to be filled up. Most of the insurers allow you to upload the documents to their portal, making things easier. Should there be a need for a medical test, the insurer would arrange for the same and you do not have to pay for it.

Did you compare the quotes?

The other method, though ever so slightly lengthier but more affordable is visiting a comparison website.You can view and compare quotes from different insurers under one roof. When you land on the website of these insurance comparators, they ask you for some basic information such as age, the city of residence, annual income and smoking status.

Once you key in these values, the website does all the hard work for you and within few seconds provides a list of all the policies that suit your profile. You can then choose a policy that fits your requirements and proceed to pay for the same. On submission of the application form, the insurer will need additional documents that you can upload to their portal. If your application needs a medical test, the insurer would contact you and schedule one as per your convenience.

But even before you decide the mode to purchase a term insurance, there are a few other aspects that need your attention:

Do you have sufficient coverage?

One simply cannot stress the importance of getting a sufficient coverage for a term plan enough. Jotting down all your debts is one of the most effective ways of deciding on a sum assured. If you have a pending home loan or a car loan or a personal loan or all of them, your sum assured must be at least greater than all of them combined.

After that, you need to factor in monthly salary. If you are the sole earner of the family, consider the dependents and your liabilities. Also, you need to anticipate future expenses and allot some money towards those as well such as children’s education or marriage.

Did you opt for a higher term?

It is easy to get hold of a term plan when you are young because it is cheap as well. But neglecting the term of the plan can prove to be expensive. If you are in your 20s and opt for a term plan for 15 years, you will be out of coverage in your 40s, which is the age where you have most of your responsibilities. Thus, get a term plan that covers you up through the age where you have most of your responsibilities on your shoulders.

Did you disclose the correct information to the insurer?

Insurers usually have a questionnaire when you fill up the application form up front. Make sure you fill it up as accurately as possible. The insurers have the rights to use any wrong information provided by you against you.

Did you read the fine print of the policy?

Well, it is imperative to read the fine print on the policy document. Understanding the inclusions is as important as knowing the exclusions. This would also make the claim process hassle-free for your family, once you leave this world.

Online purchase of a term plan is beneficial in several ways from cutting down the insurance premiums to reducing the documentation involved. However, it is equally important to look into finer details such as sum assured as well as the term of the plan before you finalize your term plan.

Nidhi Mahajan is a guest blogger and passionate about content writing. She has been blogging about Technology for more than 7 years now with variety of topics covered under Tech related articles.