Nowadays almost everything is available online, especially the information. All you need is an eye for reliable sources and awareness of what you are looking for. When it comes to finding the best term insurance plan, you can find all the information online and make a qualified decision.
So, the first challenge is to figure out what matters and choosing the best possible option about it. Here is a list of factors that you will need to consider:
Now, listing the parameters is not enough, you also need to know exactly what to look for within each and why they affect your decision.
Online availability means the whole process of securing a term insurance cover for you should be online and paperless. So, you can complete your application from the comfort of your home or office and don’t have to visit any offices.
The online life insurance buying process can save a lot of time and effort for you. You will only need to visit a designated clinic for medical checkup, which is completely free of charge.
When you are purchasing services online, customer support becomes a very important measure of the reliability of the service provider. In the case of term insurance, you want the customer service to be both empathetic and aware.
In case of any bottlenecks you or your family may face in the future, the customer service should have the solutions. And before anything else, they should be reachable.
Claim Pay-out Options
Claim payout is an important factor to consider while researching the best term insurance plan. This feature is especially useful for your family members, as they will bear the consequences or benefits of the way claim is paid. You should have the option to choose any of the following three payout methods:
While lump-sum payment is the base option with any term plan, regular income feature is the feature you are looking for. With monthly income payout, your dependents will not have to worry about investing a large sum of money to generate income.
Regular income from the term policy will help the family continue running the household without major investment decisions. You still need to have the lump-sum payout as well, so that the family can pay off any loans, and invest in long-term goals.
Since both lump-sum and monthly income payout are important, you can divide the total benefit amount between the two.
Claim Guarantee conditions
Claim guarantee allows your family to receive the claim settlement much faster. Usual conditions for this benefit may include:
Only those policies which meet both and any other conditions laid out by the insurer, will become eligible for claim guarantee.
Claim guarantee also states a maximum claim settlement period for the insurer. So, you may also look for the minimum settlement period.
Maximum Age of Cover
Maximum age of cover may not seem very important right now. But considering the changing life expectancy and employment scenario, a long-term life cover is better.
You can even look for whole life term insurance, which will cover your life till the age of 99 years. So, in a way, this plan not only helps you protect your family, but also allows you to leave a tax-free estate into the hands of your children or grandchildren.
Option of Limited Premium Payment
When you are looking for a long-term life cover, limited premium payment tenure option becomes important for you. This option allows you to buy term insurance for the entire tenure but pay the entire premium within initial few years.
For the most part, you should aim to pay all the premiums for term insurance plan before retirement. This way the term premium burden doesn’t fall on your limited pension in the golden period.
Claim Settlement Ratio
Despite all the other useful features claim settlement ratio still plays an important role. It helps you to judge the insurer’s claim settlement process and how easily families can secure a settlement. Fast settlement and claim guarantee schemes definitely add to the improvement of claim settlement ratio.
Apart from these parameters, you may also look at the additional covers available with the term insurance plan. Benefits like accidental death and disability, critical illness insurance add to the protection value of the term plan. These benefits can help your family wade through the tough times like long-term disability and life-threatening diseases.
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