One of the simplest insurance products available in the market today, term insurance gets the trust of consumers when it comes to securing the financial future of their loved ones. However, as a consumer, it is important to understand that purchasing term insurance is not only about paying the premium and expecting the family to be safe in the future. It helps to understand the product well and investigate a few aspects before buy term insurance online.
Here are 5 features you need to check before you purchase online.
1. Regular income payout
Before you buy term insurance online, you need to check whether the plan has a regular income payout option. It will ensure a consistent flow of income to your loved ones when you are no longer around. Regular income payout helps meet the monthly expenditure and fills the gap that is created due to absence of your salary.
Term plans by Canara HSBC OBC Life Insurance offers an option to choose from lump-sum payout, monthly income payout, and even a combination of both. This means your beneficiary can receive a regular monthly payout or a maximum period of 40 years. The amount will be paid in equal monthly installments to your loved ones.
Lump-sum and monthly income payout:
It is essential to check the income payout options before you buy term insurance online. Canara HSBC OBC Life Insurance offers three payout options for you to choose from-lump sum, monthly income payout, lump sum and monthly income payout and lump sum and growing income payout. This option will allow you to factor inflation. In this option, the insurance company will pay a lump sum amount at the time of the death of the policyholder and the balance will be paid in monthly installments. You can choose the proportion between lump sum and monthly income between 25%-75%, 50%-50%, 75%-25%. The monthly income can be increased by 5% or 10% per annum. One can opt for a monthly income for 120 months or until the end of the policy or a maximum of 40 years.
2. Non-working spouse cover
You invest in the best term plan for the financial security of your loved ones and it is important to have coverage for your spouse too. When you buy a term insurance plan online, look for a feature that allows you to add your spouse in your plan; then, you will not have to buy a separate cover for your spouse. The best term plan will give you an option to add a spouse in the policy with a discount on the rates for the spouse.
3. Premium waiver
In case of an accident or disability, your ability to generate income could be restricted and paying premiums could become difficult. If you have added an accidental total and permanent disability rider on the i-Select Star term plan, on the occurrence of a disability, all the future premiums payable will be waived off for the life and the policy will continue. The sum assured will be paid and the coverage will continue to apply.
4. Increasing/ decreasing life cover
Canara HSBC OBC Life Insurance’s term plan allows you to increase or decrease the life cover at different stages in life. If you buy the cover early and assume that the responsibilities will grow in the future, then it is an ideal choice for you. It will give you the flexibility to increase or reduce the cover as per your requirements. You can also factor inflation at the time of increasing the cover.
For example, you purchased a cover at the age of 28 when you had no responsibilities and enjoyed the best of your health. However, at 35, you have a family to look after and you might want to increase the cover to factor their requirements. In increasing life cover, it will increase 5% each year up to a total of 100% of the sum assured. In decreasing option, you can start to reduce 5% annually after the age of 60 until the sum assured is 50% of the original sum assured.
5. Claim Guarantee Conditions
Considered as one of the best insurance plans, the best term plan will provide a life cover and will ensure that your family is financially secure when you are not around. These five features make a term plan an ideal fit for your needs. You can align your long term goals with the plan and make the right investment decision. It is an affordable and simple plan that will give you peace of mind that your family will be looked after in your absence.
Apart from looking out for these features in your plan, you should consider the claim settlement ratio of the company you are buying from. The claim settlement ratio helps ensure your policy amount is dispersed with ease when your family needs it the most.