Compare & Buy Best Term Insurance Plan

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Term Insurance

Term Insurance plans are traditional insurance plans that provides financial stability and complete protection to the loved ones of the policyholder with the cover against any type of unforeseen events at an affordable price.

A Term Insurance Plan is the most comprehensive form of financial protection. It will help your family to meet their financial needs from household expenses to rentals in your absence. When you planning to buy a term plan, you have to make an informed choice about the life cover you select.

PolicyX is an online portal that provides a super easy platform to the customers where they can compare and buy an insurance policy along with the necessary information about the premium amount, due date and a list of policy cover for the policyholder.

An insurance plan is a lifetime investment and security. Generally, it cost heavy on the pocket of the customer as security promise of life cannot be cheap. But, what if one wants to buy a policy that is cheap and for which he or she does not need to pay a premium amount for whole life. Term insurance is the solution to the same dilemma of life.

Importance Of Term Insurance

Term Insurance provides a life insurance facility that is provided by most of the insurance company as a financial cover but for the specific time period only. The policyholder is covered from mishaps like death during the policy term.

Term insurance covers the policyholder for a fixed period of time. For the term insurance there is no cash value and as a result, the plan is less expensive than the other regular life insurance policies. The term insurance is useful only when the policyholder is dead within the time span during which the Term Insurance policy is valid.

The Term Insurance plan also offers a very high cover to the policyholder at a very minimal cost. Death is an uncertain event of life and all we can do is to be prepared for the same that is why one buys an insurance policy. But in case of the uncertain and untimely death of the policyholder, a term insurance plan is a savage and offers a financial protection to the family of the policyholder.

Term Insurance plans are available for the policyholder with a range of tenure from 5 years to 40 years. The best thing is that the premium amount does not change for the policyholder during the complete policy term. The policyholder can pay the premium amount as a single premium or as monthly, quarterly, semiannual, annual as per the convenience.

For the policy cover, one can understand the basic rule for the coverage amount and that is at least 15 - 20 times of the annual income of the policyholder. For the financial protection of the family, term insurance is a backup.

A term policy is a very cost-effective measure to save your family, even if the term insurance does not promise any significant returns and there is no other add-on and additional benefits for the policyholder as they get in the normal and regular life insurance covers. But, as term Insurance is a part of the various insurance products, all of the products have their different benefits and that can result in a higher premium value amount.

Any policyholder should choose the plan wisely and they should check properly whether they need a plan that hosts on various plans or if they want a term insurance plan that offers affordable premium amounts and fixed premium for the policy. So, in term insurance the policyholder enjoy the benefit much more than the sum invested in the same in an easy and hustle-free manner.

Types of Term Insurance Plans

Term insurance plan is a policy that only charges for the cost of insurance that you need to protect your family. However, still under the same there are many options available that you can explore as per your needs.

Pure term plan

It is the simplest and the cheapest form of term insurance plan. Under the same, the insurance company will pay a fixed sum assured amount to the beneficiary or nominee in case if demise of policyholder. However, in such cases where the insured survives, he/she would not get anything in return. Usually, the premium for term plans depends upon three factors that includes age, term of the policy and the sum assured you choose. There is no doubt in saying that the term plans are cheapest insurance product, still you can get a discount by buying them online.

Return of premium plan

It is true that not everyone would be fine with concept of paying for years and getting nothing at the end. Return of premium plan is especially designed for such people. Investing in this plan would be slightly expensive as compared and under the same you will surely get a return of premium. Under this plan, the insured will surely receive a return at the end of the policy, but if he dies during the policy term then the nominee would be liable to receive the sum assured amount.

Decreasing plan

Under the decreasing form of term insurance plan, the sum assured decreases every years just like the outstanding loan amount. You can buy this plan at very nominal charges as the sum assured decreases every year. Banks usually bundle the single premium type of this plan and pay the premium on your behalf. Under the same, the amount of premium gets added to your total debt liability, which you pay with the help of an increased EMI.

Increasing plan

Just opposite of a decreasing plan. Under the same, the amount of cover increases by about 5% every year until your sum assured increase by 50% or doubles up in value. The premiums of such plans are on the higher side as the insurance companies puts more money at risk every year.

Convertible plans

It is a combination of term plan and a saving plan. It is a plan, where you buy a term plan, which you can convert into an investment-cum-insurance plan later. However, your premium may change at the time of conversion.

Compare Term Insurance Online

Online term plans are up-to 60% cheaper than equivalent offline plans. This is due to the fact that in online plans, agent commissions are not involved and operational costs are also lower. These benefits are passed on to the customers in the form of reduced premiums.

One needs to find out the actual amount of the life insurance amount that he or she needs for the term insurance that can cover and secure the future mishaps and daily routine important expenses.

One need to well aware of the various term insurances and their benefits, PolicyX helps the customers compare and calculate the amounts for the insurance policy without any confusion easily.

This is very important for an insurance holder to compare the insurance plans on PolicyX as no policy should be bought without a comparison of the essential terms and features related to the plan, such as maximum cover for the security of policyholder and the tenure for which the premium amount is needed to be paid.

One should also check the duration of insurance policy for which the policy will secure the policyholder. Policyholder needs to check and compare the claim settlement ratio of the company from which he or she is thinking to buy a policy and if the company is serving the customers with the facility of Term Insurance since long or the company is new to the concept of term insurance.

Buying term policy from PolicyX is not only convenient and safe, but policyholder will also get proper assistance and guidance, as it involves future and security of your loved ones, so it deserves your all wit and efforts in the world.

Best Term Insurance Plans in India

Insurance Company Term Plan Entry age(Min- Max) Sum Assured(Min-Max) Policy Term (Min- Max) Premium Paying Option
LIC LIC e-Term Plan 18-60 years Rs.50 lakhs- No limit 5-40 years Annually
HDFC Prudential Life Insurance Company HDFC Life Click 2 Protect 3D plus 18-65 years Rs.10 lakhs-No limit 5-40 years Single, Yearly, Half Yearly, Quarterly, Monthly
ICICI Life Insurance ICICI Pru-iProtect Smart 18-65 years Subject to minimum premium-No limit 5-40 years Single, Yearly, Half Yearly, Quarterly, Monthly
Max Life Insurance Max Life Online Term Plan Plus 18-60 years Rs 25 lakhs-1 crore 10-40 Years Annual, Semi Annual,Quarterly Monthly
Aegon Life Insurance Aegoni-Term Plan 18-65 years Rs 25 Lakhs- No Limit 5-62 years Annual, Semi Annual, Monthly

Some of Top Term Plans in 2018

  1. Aviva i life Total Term Plan
    It comes out with 4 plan options to select the cover that suits the requirement of you and your family. This plan carries great features like inbuilt terminal illness benefit, accidental death benefit, maturity benefit, monthly income and many more.
  2. Canara HSBC OBC iselect term plan
    It is a pure protection plan that offers life insurance and terminal illness cover along with cover against accidental death/ disability, and the option to secure an income for your family even in your absence. It has come out with 4 benefit payout options viz. Lump Sum, Lump Sum + Monthly Income, Monthly Income for a fixed term, Monthly Income till the end of your policy term.
  3. Edelweiss Tokio Life Totalsecure Plus Term Plan
    This term plan offers complete coverage with 35 critical illness cover and a long-term life cover till 80 years of age at a very low price. It comes out with the flexibility in designing your coverage as per needs and has optional additional riders for complete protection.
  4. Aegon life iterm plan
    It is an online term plan that offers comprehensive insurance benefit for you and your family. The key features of the plan include low-cost coverage, flexibility to increase life cover, pay-out on the diagnosis of terminal illness, additional covers for enhanced protection and many more.
  5. PNB Metlife Mera Term Plan
    You can customize this plan as per your needs as it comes out with the flexibility to choose from four pay-out options and also offers coverage for your spouse under the same plan. The plan has been designed to suit individual needs and offers enhanced protection for your family.

Reasons Why Term Insurance is Affordable

  • It is a pure insurance policy with no investment component

  • The insurer would be liable to pay to the nominee only in case where the life assured dies during the policy period

  • When it comes to the online purchase of term insurance you can save a lot of money on administration and other charges

  • If you go for a cover of 20 times of your annual income, then you have to pay annually a sum of 2-3% of your annual income

Various Features and Benefits of Term Insurance Policy

There are various benefits of the term insurance policy like-

Affordable Premium Option

Term Insurance policy premium offers the customer's lowest premium payment options. The policyholder can choose a premium amount based on the convenience. The premium can be paid in a single payment or either monthly, quarterly or annually.

Return more than the Investment

Some customer face the dilemma that with a promise of zero return on the survival of the term in the term insurance policy one should buy it or not? So the policyholder should choose the company that provides the return of the entire policy premium amount that is paid by the policyholder under the tenure of the term insurance plan. This is covered under the term return of premium plan of the company.

Multiple Options

Insurance companies facilitate the policyholders with the choice of various term plans. The policyholder can opt for the term insurance policy as per the requirement. One can choose from the single or joint life term insurance plans. In case of a change in the marital status, the policyholder can extend the policy for the dependent spouse.

Add - on benefits

There are many benefits that are not covered by the term insurance plans for the individual. Insurance companies understand the need for the policyholder and they provide various add-on plans as per the need of the customer. Premium amount hike with the add-on in the policy that provides cover for the cases like critical illness, permanent disability, and accidental death.

Death Benefits

All forms of death are covered (even terrorist attacks)* *Note: In the event of the death of the insured by suicide within the first year of the policy or with 1 year of the date of renewal the death benefits are not applicable.

Tax savings

The premium amounts paid for the term insurance plan in which payouts are made in the case of death are tax-free. In a legal way there are various acts of the Income Tax Act under which term insurance plan covered and thus one enjoy the tax-free benefit of the policy.

Exclusions in The Term Insurance Plans

Term insurance policies cover a lot of events and situations. The specific exclusions depend upon the type of plan and term that you choose. However, there is one exclusion:

Suicide: Suicide is an exclusion that you will find in almost all term insurance policies. Suicide will not be liable for any compensation even when it comes to group insurance. But if suicide is committed within one year by the policyholder then the company will be liable to refund 80% of the premium and all rights, benefits, and interests under this policy will nullify.

Why Choose PolicyX For Your Term Insurance Policy?

Online term plans are still at a nascent stage in India with some companies still in the process of launching online plans. However, offline term plans have been around for as long as Insurance and have been one of the key necessities for people looking for pure protection. Online term plans are up-to 60% cheaper than equivalent offline plans. This is due to the fact that in online plans, agent commissions are not involved and operational costs are also lower. These benefits are passed on to the customers in the form of reduced premiums.

1. PolicyX.com helps you choose the best term plans from leading brands in less than a minute.

2. PolicyX.com provides you with the detailed information of the product to give the clarity over the plan which suits your requirement.

3. You can compare term insurance plans on our portal & save money up to 60%.

4. The term policy comparison, we provide you are completely unbiased and specific.

5. We provide expert advice and publish articles, news, etc to keep you posted on latest term insurance plans from leading companies.

Eligibility For The Term Insurance

1. To avail the benefits of term insurance plan, the minimum and maximum age of the policyholder should be between 18 years and 75 years respectively.

2. To calculate the sum assured amount, there is also a form of eligibility. The company checks that the insured person is capable of paying the policy premium or not.

3. The policyholder should be a citizen of India.

What Is The Right Age To Buy Term Insurance Plan Online?

When it comes to investing in term insurance then there is no right age for it. Like other insurance policies, the earlier you opt for it, the better you will get. If you invest in a term plan at an early age:

The premiums will be comparatively lower.

Your liabilities will be less, hence you don't need to insurance a big sum that will also make it affordable for you.

As health risks largely depend on the age, getting covered is easier and hassle-free.

Tips To Buy Best and Cheapest Term Insurance Plan Online

When it comes to comparing term plans, you should keep a few things in your mind such as tenure of the policy, sum assured, etc. As per the thumb rule, a person should go for the tenure of your expected retirement age and deduct your current age from that. The sum assured usually depends on your income. It is advisable to go 10-20 times of your current annual income. Other things that can help you to save money while choosing a term plan are:

Compare

When it comes to comparing term plan, you must look at the features and flexibility of the policy, not just the price.

Buy Early

It is true that the earlier you buy the better you will get. In term plan, the age number greatly influences the premium amount.

Purchase Online

If you do the research then you will come to know that the online term plans are usually cheaper as compared to others in the offline section.

Things To Know While Investing In A Term Plan

You are investing in a term insurance plan with a purpose of ensuring that your loved ones and family member will get adequately financial support in case of your death. It is a sensitive case and you will surely want to make sure that you are choosing the right option

Coverage

Make sure that you are buying a sufficient cover for your family or the beneficiary. You should never compromise with the same just because of a lower premium.

Claim Settlement Ratio

It is very important for you to pay attention to the claim settlement ratio of the insurance company which you are considering for your purchase. So, don't forget to check this before taking any final decision

Inflation rate

Term insurance is all about the future needs of your family and in such case keeping inflation rate in mind is an important thing that you should do. You should always consider how sufficient the coverage amount will be in the future.

Add-on feature

Always enhance the term insurance plan cover with suitable riders for the most comprehensive coverage.

Riders in Term Insurance

Riders are basically the additional optional features that improve the base policy cover. There are many riders that you can explore under the same. There are some plans also that comes out with a few riders as an in-built feature of a term plan. Before investing in a term insurance plan, one must also look for the additional riders.

On small amount of additional premium, you can easily get effective riders. These riders are highly beneficial as they come with their own standalone coverage amount.

Rider How it can help?
Accidental Death benefit Rider In case of the death of the insured because of an accident, the nominee receives the death benefit, as per this rider. The percentage of the same depends upon the sum assured that you choose.
Critical Illness Benefit Rider This rider provides policyholder 100 percent of the rider sum assured, in case the insured is diagnosed with Cancer, Coronary artery bypass graft Heart attack, Stroke, Kidney failure, Paralysis, etc.
Waiver of premium rider This rider waives off any further premiums to be paid in case of a critical illness or disability.
Income Benefit Rider This rider is primarily for income generation after the policyholder's death. Under the same the insured's family gets additional income per annum for five to ten years with the regular sum assured.

Process of Making Claim

Policyholder needs to file a claim depending on the requirement and the amount that will be recovered depends on the amount that was decided at the time of the policy. The claim settlement process for term Insurance is simple and one can easily avail the benefit in the hour of need. The claim process needs the insured to inform the insurance company first. He or she can visit the nearest branch of the company with the required documents. Documents are very important for making the claim. Following are the necessary documents that are needed for the claim process -

Original insurance documents

Proof of claim

Death certificate of the policy holder

Medical record and treatment papers

Apart from the above - mentioned documents, one needs to confirm if any other document is needed from the insurance company as it depends on the nature of loss and the type of the term insurance policy of the policyholder. After the verification of all submitted documents, the claim will be honored against the Policy.

Normally, term insurance plan can be availed at a lower price when the person is at the early safe of life and young. So one should check the term insurance policy at the PolicyX and compare pros and cons of different insurance companies like HDFC, LIC, ICICI and Bajaj Allianz before settling down for any term insurance policy.

In an unfortunate event of your death, how can your nominee claim your Term plan?

If you have already owned a term insurance plan then it is advisable for you to keep your nominee aware of all the situations and procedure so that in case of need, he/she can easily claim for the policy that have been shelling premium yearly. To make the claim, the following steps need to be taken:

Each and every insurance company has its own set of procedure related to the claim process. Hence, in case of your death, your nominee/beneficiary has to intimate the insurer of the same.

All necessary documents such as Claim Form, Death Certificate, original policy documents, hospital and medical records and bank account details of the nominee, etc. are to be submitted to the insurance company for further processing.

Always prefer to connect with the insurance company through written medium like an email to keep a track of your conversation.

Why Should You Get A Term Plan?

There is no doubt in saying that a term insurance plan is the most comprehensive form of life insurance. It will provide the needful financial assistance to your family in your absence so that they can easily meet their financial needs. You can say that term insurance policies are great to offer the required peace of mind with affordable premiums and a life cover that you can choose according to your family's lifestyle and financial needs. Some of these term plans can also be bought online within a few clicks & without any lengthy paperwork.

Some of the key benefits of term insurance plans are

  1. Term Insurance Plan offers wide life insurance cover at affordable prices
  2. It also assists you to protect your loved ones from any unforeseen eventuality
  3. Term insurance is great for covering your financial liabilities
  4. They also offer tax benefits on premiums paid and the payout received
  5. Term Insurance Plans help during critical illness
  6. Offers supplementary income in case of loss of income due to accidental disabilities or illness.

How will a term plan secure your family's future?

The main goal of the term insurance plan is to assist your family to meet their financial needs that include daily expenses and future needs as well in case of your absence. Hence, it is important for you to understand the needs of having a term plan and choose the one with an adequate amount.

  1. Your family will get a lump sum amount is payable to your family in case of your death.
  2. You can also go well with the option to receive the benefits in the form of regular monthly income, along with lump sum payment
  3. Riders can be added to the base term plan for improved benefits in case of accidental death, disability, or critical illnesses plan for yourself

How can you choose the right term isnurance plan?

Life Stage Variants to be considered
Young and unmarried Term plan with a onetime lump sum payout
Married with no children Term plan with a regular monthly income
Married with young children Term plan with a lump sum payout and an increasing monthly income
Parents with children in high school Term plan with a lump sum payout and an increasing monthly income
Nearing retirement Nearing retirement Term plan with a life cover and an increasing monthly income

Steps To Find The Most Suitable Online Term Plan

One of the best things about the online term plan is basically the freedom to secure your future. Moreover, along with the same, it will also bring responsibility of buying the adequate one and stay informed about the features and benefits of the plan. A plan that is able to match your requirement id the only which you should go for.

Here are a few steps which will assist you in choosing the best

Step 1

It is very important for you to understand the need for term life insurance and the amount which should be enough for your family to deal with the financial requirements and future obligations. IN India there are many life insurance calculators which can help you in the same. It will help you in getting an estimate of the desired figure.

To start with, visit a life insurance company which you are considering for your purchase. Let's say your annual income is Rs 12 lakh. As per the thumb rule of term life insurance plan, 15 times of annual income, you need life insurance of Rs 1.8 crore. The second step in the same is to search out for a life insurance plan which is able to deal with all financial obligations that include clearance of outstanding loans, your kid's education. Assume, the sum total of your financial obligations is Rs 50 lakh, you would need total life insurance coverage of Rs 2.3 crore (sum of Rs 1.8 crore and Rs 50 lakh).

Step 2

Now, its time to compare term insurance plans. Don't forget to compare essential term insurance o the basis of features, coverage, duration and the premium that you have to pay. Also, search out for the term life insurance companies which have been in the business for long and look like being there for the entire tenure of the plan, which could be as long as 30 years. You also have to check out the insurance company's claims settlement ratio. That indicates the number of term insurance claims settled vis-a-vis the total number of claims.

Step 3

Look for the Term plans which allow you to attach riders that cover other risks to your families, such as those from accidents and critical illness. As riders come at affordable premiums, it's worth to add the same with your term plan. You will have a wider coverage of risks and provide better financial protection to your family.

Buying online term insurance plans offers immense convenience. Yet, you still have to make sure that you select the right term insurance plan and don't miss out on the essential details. Since it is about securing your family's future, you would surely put extra effort, would you?

How Should Long Be The Term Of Your Term Plan?

The tenure of your policy is as essential as the amount of premium you pay. The longer the duration of the term insurance policy, extra could be the coverage's annual premium. In case you hold the duration too brief, there are chances that you could be without a cover in a period when your loved ones will need the economic safety. Therefore, it is important to recall crucial elements like the tenure of your policy when you are buying a time period plan in India.

Goal

The objective of the term plan is to assist your family individuals to meet their daily expenses and future needs even in your absence. Consequently, the proper term of a term insurance plan ought to quit at a time when you have met all of your life's dreams and saved enough for retirement.

Tenure until retirement

It is generally hard for you early in life to determine until when you'll have accumulated enough savings to attend to all of your needs for the rest of your life. This is the time while you may not want life insurance. Given that lots of your massive expenses along with your child's higher schooling and marriage are likely to occur during your 40s and 50s, it makes sense to have a term policy all of the ways up to your retirement on the age of 58 or 60.

Of path, there are those who aspire to, and there are some who truly do, retire with a good deal earlier, say, of their 40s. The guiding principle remains the same. You preserve the life cover as long as you don't have enough financial savings for you and your own family for the rest of your life.

Why Taking The Longest Term, Early In Life Is Good?

A smart approach is to buy the term policy early on in life, opting for the longest viable insurance. This ensures you enjoy the low premium at some stage in the lengthy tenure of the time period plan. For example, at the age of 25, you can take a time period of forty years as it would ultimate until age sixty-five. In this situation, you will revel in the less premium until the end of the term. As your income will increase and way of life receives more suitable, besides you taking on loans, to cover all of them, you may need to periodically enhance your term life cover.

To sum it up, it isn't always simplest vital so that it will have ok life insurance but also to make certain that it stays that way until the time your family desires it. It's your obligation to make sure that your family is financially prepared to face any eventuality.

How To Evaluate Your Term Plan Quotes

Term insurance is an amazing form of life insurance and a financial too. It is very easy to understand that the term insurance is cost effective. When you are looking for an adequate term insurance plan, you will surely receive a quote which will carry various components such as a type of coverage and options you have chosen, while some other are statutory additions.

The premium varies with Age

You should keep in mind that the premium of term insurance plan will vary according to age. We all know that age increases, the risk associated with health also increases which increases the risk rate for the insurance companies. To get over with this risk, insurance companies usually hire a large premium. Hence it is advisable for all to invest in a term insurance as soon as possible.

The Life calculator shows the difference in premium that Mr. Rana (25 years old) and Mr. Bansal (35 years old) will have to pay on a ? 25 lakhs cover for a 40-year term policy. Assuming, both are non-smokers, for a life cover of Rs 25 lakhs, over a policy duration of 40 years, Mr. Rana will pay an annual premium of Rs 2,500 while Mr. Bansal will pay a premium of Rs. 3,950 for the same cover.

As you can see, Mr. Bansal will pay a 58% higher premium because he has started 10 years after Mr. Rana. Hence, by planning early, one can easily save the extra premium.

Check the Base Premium

Base premium is the minimum amount payable for getting the life cover, without the riders and taxes. This is based on the age, gender, and smoking habit of the person to be insured. The base premium for online term insurance plans is generally lower than that for offline plans due to fewer distribution costs.

Check the Riders cost

Riders always act like a blessing to your basic term plan. There are several riders that you can go for that includes accidental coverage, critical illness, disability etc, based on your specific needs.

Ascertain The Tax Component

Like other insurance plans, life insurance also attracts Service Tax. This is a standard addition across policy types and insurance companies. So whenever you get an insurance quote, you must always look what it includes like if it is inclusive of the Service Tax component or not.

Right now, the rate of service tax in India is 14% and the insured can claim tax benefits (under section 80C of the IT Act) for the life insurance premium.

Consider The Lapse Charged Payable For Policy Revival

Insurance companies carry some clauses related to Policy Lapse condition. As per those clauses, if you fail to pay the premium within a certain no. of days from the due date, the policy lapses and no benefits are payable. But you will also get the option of revving your policy, by paying simple stipulated charges. Make note of these charges when you opt for a life insurance policy. The lapse charges include overdue premium, taxes, late fees (penalty) and interest. These charges can be easily avoided by opting for a Standing Instruction for the premium payments.

Getting A Medical Test And Its Implication

If your age is 50 or more than that and you have applied for a high sum assured, then there are chances that you have to undergo a medical test. If there are no serious health risks, your policy is issued at standard terms. However, if your health is not good, and if the medical examination highlights a risk, you might have to reduce the life cover or pay a higher premium (called Rate Up).

Term Insurance v/s Traditional Life Insurance Plan

Term Insurance

Term insurance which is also popular by the name of pure life insurance offers a considerable death benefit in return of very less premium over a special time period. In case of the death of the policyholder for the duration of the term policy, the coverage amount goes to the beneficiary. However, if the insured person remains alive till the whole term of the coverage, then he has to forego the insurance and might should buy further coverage, albeit with unique rates and situations.

When you consider that a term policy does no longer have any survival or maturity returns and in the most of the instances, it lapses earlier than the demise of the insured, many human beings view it as an empty funding. However, it without a doubt makes a smart investment for any of the subsequent reasons:

  • You need a wider coverage at lower costs.
  • You're a bachelor, but have dependents, particularly disabled ones.
  • You are a married man or woman with kids.
  • You have a home loan legal responsibility.

The term policy tenure is usually between 5 - 30 years. So, a person prefers to shop for this coverage across the age of 25-45 years. as soon as he's in mid - 50s, he might also want to stop with the policy as though that point other conventional funding tools begin yielding returns and maximum of the EMIs are over. Hence, his ordinary monetary liability reduces, which make it less difficult to meet financial expenses in case of his death.

Traditional insurance

Traditional insurance, additionally referred to as complete life coverage, money returned or endowment coverage provides a couple of benefits like risk cover, constant income returns, safety and a tax gain. those are the oldest and the maximum basic model of insurance and are beneficial for human beings with low hazard patterns. They offer a sum assured and a guaranteed or a vested bonus at maturity.

  • You ought to bear in mind taking a conventional insurance plan underneath any of the subsequent condition:
  • You're searching out a long time financial stability.
  • You need threat insurance in addition to assured returns on your charges.
  • You already have a high income, however, you are not financial savings savvy.
  • You want cash glide for predictable future emergencies together with a kid's education & marriage and retirement.
  • You're a conservative investor.
  • You are solely looking for better tax saving instruments.

A traditional insurance works at the 90/10 rule, which means that the coverage organization can preserve the most effective 1/10 of the earnings and the rest of it would be shared with the clients. This indicates better returns on the funding for a patron. The funding threat is totally borne through the business enterprise, making it a risk alternative for the risk-averse clients.

Despite the fact that the returns from a life cover fail to overcome the developing inflation prices, the sum assured and bonus acquired could be sufficient to satisfy sure predicted costs. In case you are a passive investor or searching out extra tax saving gadgets, traditional insurance could be a terrific asset for you.

So, that is a smarter choice?

Now, having weighed the pros and cons of both plans, the huge query nonetheless stays: which one to buy? certainly, the selection relies upon your monetary dreams and needs.

Taking a term plan is always, in case you are seeking out pure protection. Experts also endorse a mixture of term insurance, equities and mutual price range for your investment portfolio to fetch higher returns, balance your wealth and diversify the chance. After purchasing the term plan, you may make investments the stability amount in the mutual price range, that may provide you with approximately 10-15% returns. So, you get the best cover - natural life cover in addition to good returns.

Term Insurance: Factors that Affect Your Premium

When it comes to the term insurance plan there are several things associated with the same. There are several things that can increase the premium of your term policy or can low down the same as well. If you are not aware of the right amount that you might have to pay for your term insurance policy. Normally you go for a term plan depending on their premiums or quotes that you get to compare. But have you ever thought that you can use the term insurance calculator to know your premium in advance?

The below-mentioned factors are used to calculate your term insurance premium:

Age of the Policyholder: Age refers to be the most important factor when it comes to deciding the term plan premium. You may not be aware of but this is the first thing that the insurer will look for. It is a fact that at a younger age the chances of falling ill or any get diagnosed with deadly diseases or death is very low. The insurance company would thereby save money in the near future since the possibilities of making a claim are less.

Personal habits: If the policyholder is addicted to alcohol, smoking, or drugs then for sure the insurance company will charge extra for this. And, in some cases, there is a high chance of policy denial too. Whereas people without such addiction in life will ay 30 tp 70 percent less as compared to the addicted ones.

Health report: You may experience to pay a lower premium if you have not had a family history of cancer, Alzheimer's and so on.

Tenure of the insurance coverage: The term insurance premium calculator may be affected adversely if you purchase a plan that also provides coverage against your retirement age as well as till you pay off all your liabilities.

Insurance/sum assured: Its really helpful to choose a coverage as in keeping with your requirement. The better the sum assured, better would be the insurance premium.

Term Plan Calculator

Insurance groups offering term plan will be flooded with several questions associated with the premium to be paid for a particular coverage. Because the premium amount is indispensable to choosing a policy, a number of agencies have a premium calculator on their websites which permits policyholders to calculate the same. The premium calculator facility is available to all individuals who desire to calculate an estimate of the premium to be paid.

The premium calculator for most insurance businesses calls for you to input info inclusive of your gender, date of birth and point out in case you are a smoker or non-smoker. The insurance amount required (relying on your wishes) is to be entered as well.

In doing so, the premium amount to be paid may be displayed. The premium amount could be calculated primarily based on the maximum coverage term offered by the insurer.

Any extra advantages protected as a part of the policy would be displayed underneath the premium amount payable. A few insurers provide an estimate based totally at the coverage plan decided on and will offer the premium amount based totally on the form of plan and insurance it offers. The premium calculator is a tremendous manner for individuals to check their premium contribution in the event that they wish to opt for a selected term insurance.

Advantages Of A Term Insurance Calculator

  1. The way you do a right R&D before buying something online, it does make absolute sense to run via a identical research earlier than shopping for a term insurance online. Right here are the advantages of the usage of a term insurance calculator:
  2. The term insurance calculator will assist you to recognize the exact premium for your chosen insurance to safeguard your family in case of your premature demise
  3. Your term insurance online shopping will become a simple and handy method
  4. You become a nicely-knowledgeable consumer about the marketplace know-how
  5. You get to peer plans of various insurers below one roof
  6. You get to compare capabilities and charges of various term insurance plans for the best offers ever!
  7. Online term insurance is cheaper and easy to apprehend

Way To Use A Term Insurance Calculator

The term insurance calculator will ask you to enter basic details such as your name, gender, date of birth, cellular number, marital status, annual income, smoking and chewing tobacco behavior, your selected cover amount and the age/period until which your policy have to cover you etc.

After you input those details the term insurance calculator will provide you with a plethora of time period insurance plans provided with the aid of specific insurers. Select the purchase now button on the one you experience could come up with the right coverage on the right charge.

The term insurance calculator will ask you to feed in the information of your nominee and sooner or later take you to the payment gateway.

You may now make the term plan payment online with the help of the debit card, credit score card or your internet-banking facility.

Single life or Joint Life Term Plan

Points of Difference JOINT TERM PLAN TWO SEPARATE TERM PLAN
Who will get the required cover? Under this,both partners will be liable to get the needful coverage under a singel plan. Require two different policies to cover both the partners.
Life Coverage Sum assured can be same for both the partners or maximum 50% for the spouse and that too depend upon the insurer.. Both partners will get the coverage on the same terms. Sum assured varires from person to person. Each spouse can select as per their own requirements and annual income.
In case any of the partners dies during the policy term? Full payout of the sum assured, and the plan continues for the surviving spouse, depending on the planning scheme or the surviving partner who is no more insured, may need to buy another term plan. Full payout of sum assured and policy of that life assured terminates. The surviving partner stays covered under his term plan.
In case where both the partners die? Single payout of sum assured or respective sum assured to the legal heir(s) depending on plan. The double payout from both the term insurance policies to the legal heir(s).
Suitability 1. It is a best plan for the middle age couples, as buying two different policies in middle age may have higher premiums which are not advisable.
2. It is also good for couples not having much age differences.
3. Preferably, for couples living the same lifestyle, as smoker or non-smoker, else the premium would be higher for both even when one of the partners doesn't smoke.
1. This plan go well for young age, as the premium will be lower.
2. Even couples having a big age gap between them can go for this plan. Because then the overall premium paid will be far lower and will be as per the age and sum assured.
3. It is suitable if any of the partners is not a non-smoker, in which the premium and sum assured could differ.
Who to invest? If any of the partners is a homemaker or have a low income, one should opt a joint term plan. If both the partners are working and are contributing to the family's income should opt for two single term plans covering each individually.

Term Coverage Renewal Process

When your term insurance policy is set to expire, make sure you get it renewed on time. Term plan can now be effortlessly renewed online with only some clicks. Here are the fundamental steps involved in the renewal procedure. This manner may be distinctive for one of a kind insurers.

Step 1 - Evaluation of your coverage

Step one of the renewal procedure is to study the present coverage that you have. This will come up with a risk to review the cover and discounts that your coverage provides and make any changes as are important. When you consider that many of us might not use our insurance coverage for a long-term, it's important to make adjustments for your cover with time as your priorities exchange.

Step 2 - Provide policy information

Insurer's website and click on the coverage renewal tab. After you click on the tab, you may be asked to offer your policy info inclusive of the policy types, date of birth, phone number, and so forth. After this step, you will be asked to confirm the information you've simply submitted.

Step 3 - Make the payment

The closing step of the renewal process is to make the payment for the coverage. In recent times, one could make the payment for coverage renewal online through a number of channels together with with the aid of cheque, with the aid of credit score card/debit card, via an ATM, via SMS, through online banking, via cellular wallets, bank vehicle-debit facility, financial institution collection centres, or at the branch office itself.

Why is term insurance better than any other life insurance policy?

Term insurance is a "no frill" form of life insurance that provides coverage for a particular 'term' or for a defined number of years. You can invest in the same for 10, 20 or 30 years. It is a pure protection plan that will surely help your family during the hard time when they need it most. Term insurance is actually designed to safeguard you and your families from uncertainties.

  1. Term insurance comes out with the benefits that you will not be able to get from other traditional life insurance plans in India. Let's have a look at these benefits:
  2. It is a pure protection plan whereas other insurance plans offer insurance plus investment
  3. It is very easy to understand not like other policies which are highly complicated.
  4. The premiums of this plan will remain unchanged during the whole term, whereas, in other life insurance plans, it will keep on changing with the growing age.
  5. Allows you to choose the policy term up to 35 years
  6. It offers death benefit only, in case of the death of the policyholder during the policy period. Therefore, the sum assured as per the policy agreement is paid to the nominee/beneficiary
  7. It allows you add riders at the nominal price to enhance the coverage term plan for wider security such as waiver of premium, accidental death etc.
  8. Term insurance is the best solution in case of a tight budget since cash value insurance are higher in cost
  9. Comes with higher coverage at a lower cost
  10. A great plan for businessmen also, since they can save on certain costs by opting for term insurance. By doing this, they can certainly utilize their balance capital to grow their business further
  11. It is one of the best plans when it comes to offering complete financial security to your family members, because of its affordability.
  12. It is the cheapest option to protect your family and provide the needful financial assistance in case of your demise.

Term Insurance FAQs

1
What is Term Insurance?

Term Insurance is the cheapest and simplest form of insurance. It is a risk cover and is determined by the sum assured. Upon the loss of life of the policyholder, the predetermined amount is paid to the nominee.

2
Why should I buy Term Insurance?

Term insurance would be suitable for a person with low income but requiring a large cover to protect his family's financial future in case of his demise. For similar reasons, this type of insurance would also suit a person who is the sole breadwinner in the family and has a moderate income.

3
Does Term Insurance cover death due to natural disaster?

Yes, Term Insurance covers death due to a natural disaster like flood, earthquake etc.

4
Does insurance company cover death due to terrorist attack/war?

Yes, the insurance company covers death due to terrorist attack/war/natural calamity (unless specifically excluded by the insurance company) and the claim is settled if documentation is proper and in order.

5
How much life cover should I buy in a Term plan?

There is a common formula to understanding how much life cover you should buy in a term plan.

Minimum sum assured = Annual Income x 10 times + Loans/Liabilities

Based on this formula, you can calculate your required life cover.

6
Are terrorist attacks get cover under Term Plan?

Yes, death due to terrorist attack is also covered under the plan. This may depend upon your insurer. If you are the policy holder, death benefit can be claimed by your nominees/legal heir.

7
What mandatory documents are required to buy Online Term Plan?

A list of documents are required to purchase term insurance online. They are listed below.

  • Proof of income/ employment

  • Proof of age

  • Proof of education

  • Proof of address - residence and correspondence

  • Proof of identity

  • Photograph

  • PAN Card copy

8
What is the best insurer to opt for?

There are two factors that you must consider while choosing the insurance company for your purchase- Affordable pricing and reputation in the market. Although pricing is apparent, reputation relies on brand image, claim settlement ratios and quality of service a company provides.

9
Can a person change the duration of life cover after the issuance of policy?

The duration of life cover cannot be changed once the policy is issued.

10
Will the premium amount change during the tenure of the policy?

Once the policy is issued to you, the premium amount stays the same throughout the entire tenure of the policy. This also depends on the tax regulation declared by the Government of India.

11
Can A person insure my spouse/ children instead of me?

If you want to invest in a term plan for yourself, you can do that on your own name. If you wish to cover your family members, you will have to buy individual term policies for them.

Insurance Calculator

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Monday May 14, 2018

Term Insurance - Customer Reviews

"Mukesh, Ahmedabad"
- "Great"

Good Read More.. Good

Mukesh, Ahmedabad
Reviewed On 22-04-2018
"ease of purchase"
- "Great"

Purchasing life insurance has been made easy by policyx.com Read More.. Purchasing life insurance has been made easy by policyx.com

mahendra, Rudrapur
Reviewed On 08-02-2018
"good site"
- "Great"

Good site Read More.. Good site

Amar Gupta, Mumbai
Reviewed On 04-02-2018
"Canara HSBC OBC i-select"
- "Great"

Canara HSBC OBC i-select plan is a plan which fits my requirement and has discounted premium also Read More.. Canara HSBC OBC i-select plan is a plan which fits my requirement and has discounted premium also

Rakesh Kumar, Ambala
Reviewed On 02-02-2018
"Good Plan layout"
- "Great"

This site has detailed information about every plan and insurance company there is. It is a good effort Read More.. This site has detailed information about every plan and insurance company there is. It is a good effort

Lovely Sing, Gurgaon
Reviewed On 29-01-2018
"Claim setllement"
- "Great"

Policyx is good site, they helped me in claim setllement also for the life insurance policy I brought from them Read More.. Policyx is good site, they helped me in claim setllement also for the life insurance policy I brought from them

Sanyam, Gurgaon
Reviewed On 01-02-2018
"HDFC click 2 protect 3D plan"
- "Great"

I have HDFC Click 2 protect plan which covers uncertainities like- Death, Disease and Disability. It's a good comprehensive plan and fits your budget Read More.. I have HDFC Click 2 protect plan which covers uncertainities like- Death, Disease and Disability. It's a good comprehensive plan and fits your budget

Situ Tiberwal, Jaipur
Reviewed On 31-01-2018
"good"
- "Great"

This site helps you in making a decision as to which plan to buy and offers many options as well Read More.. This site helps you in making a decision as to which plan to buy and offers many options as well

Surabhi Sharma, Meerut
Reviewed On 29-01-2018
"Supportive"
- "Great"

I was in a need of good term plan from the purpose of investment. I called policyx represntative and was offered all the information I required and th Read More.. I was in a need of good term plan from the purpose of investment. I called policyx represntative and was offered all the information I required and they also hepled in buying the plan

Bhawna Prasad, Pune
Reviewed On 28-01-2018
"Informative"
- "Great"

One can know all the information about any life insurance plan from this site. They have all the company information Read More.. One can know all the information about any life insurance plan from this site. They have all the company information

Nayan Sindhwal, Agra
Reviewed On 26-01-2018
"Max Life Online Term Plan"
- "Great"

I purchased Max online Term Plan from policyX.com. The plan is really good and serves the purpose Read More.. I purchased Max online Term Plan from policyX.com. The plan is really good and serves the purpose

Omakr Rana, Delhi
Reviewed On 23-01-2018
"Good"
- "Great"

Life insurance is must for everyone today. I got a good deal from policyx.com Read More.. Life insurance is must for everyone today. I got a good deal from policyx.com

Yunis Khan, Other
Reviewed On 03-12-2017
1 2 3 4 5 6

Aggregate Rating for Term Insurance    [ 66  ]