Online Term Insurance Plans are best for securing future of your family after your death with low cost premiums. Yes, Term Insurance Plans are made to cover your after death situation. Most of people are now turning to buy online term plans than going with Endowment Policy. Endowment policies are also good, but term insurance plans provides better cover and death benefits.
How to choose Best Online Term Insurance Plan? - Top 5 Best Term Plans 2016
Below is guide on how to choose the best online term insurance plan, things to check before you buy term plan and which are top 5 best term plans available in Indian insurance market.
Things to Take care before you Buy Online Term Insurance Plan
Sum Assured: - Firstly, decide how much money your family will be needed after your death. Suppose, your age is 30 and you choose 20 year term plan. So, in case of uncertain death of yours, your family will get money (in 20 years of term). We need to choose 10 times amount of term plan than our annual income. For example, if you are earning 7 lakh per annual, you need Rs.70 lakh of term plan to fight with future inflation.
Years of Cover: - Most of the people (salaried) retire at 60 years. But our experts who suggest that one should atlest take cover till 65 years of age. Don’t buy 15-20 years of cover, as the premium of term plan is quite low. Approx Rs.5000 of yearly premium you need to pay For Rs.25 lakh of sum assured term plan. (While in other endowment plans, you end up paying high premiums).
Accident Cover: - Is your term plan cover accidental death too? If yes, it will be plus point. India has high road accidents, and term plan which provides you accident cover will give much benefit to your family after your death.
Critical Illness: - If you or your family has history of having critical illness like cancer or any other major diseases, you better buy a term plan which covers major diseases. There are many online term plans available in market which provides you good cover on critical diseases.
Income After Death :- instead of paying all sum assured in one shot, there are options available upon which, your family will get sum assured money in installments (say monthly pay outs). This will help your family members for better financial planning of money.
Adjusted Coverage Plans: - There are many plans available which provides you to increase or decrease your term plan cover. You can increase your cover when you get child or you can decrease cover plan after some age. Such options will get benefit you to avoiding high premium rates at the retirement age. You can choose multiple options; just don’t blindly follow any single plan.
Low Premium Rates: - Many people go for low premium term plan which does not provide many facilities like illness cover or accidental cover. It is advisable to go for the term plan which gives you better cover instead of low premiums.
Claim Settlement Ratio: - While choosing the term plan, go with the insurance company which has better claim settlement ration. Claim settlement ratio is published by IRDA (Insurance Regulatory and Development Authority). Every year IRDA publish claim settlement ratio of all insurance companies which provides you easy data to analyze which company pays better after death of the insurance buyer. In short, Claim settlement ratio gives you glimpse of how is after sales service of insurance company.
Buy Online: - You don’t need to go to the insurance company to buy term plans, you can buy online term plans from website of insurance company and you can start the cover right now. Just take care of the above mentioned points before you buy term plans.
Always buy good cover term plan instead of low premium term plan. Though, Term plans are quite cheap. You can get Rs.1 cr of cover for just Rs. 18/- per day.
Top 5 Best Online Term Plans In India
As you have seen the list of things you need to take care while buying term plan, now check out list of top 5 best term plans;
#1 :- LIC eTerm Policy (Table 825) :- LIC (life insurance company of india) has top most claim settlement ratio in india. LIC tops with 95.51% of benefit amount given and 98.19% no of policies have claimed death benefit in last one year. LIC no doubt best insurance company also has good credit in Indian insurance market. Apart from LIC eTerm 825 plan, LIC Anmol Jeevan II and LIC Amulya Jeevan II are also good term insurance plans from LIC.
#2 Max Life Insurance: - Max Life Insurance has 93.59% of claim settlement ratio in last year with 96.03% policy claimed benefits in Max Life Insurance. Max Life insurance provides monthly income after death and raising monthly income options in term plan. You can check the max life insurance term plans.
#3 TATA AIA :- TATA AIA’s iRaksha TROP is good term plan. If you are looking for limited sum assured plan with low premium rates, you can go for TATA AIA iRaksha term plan. This term plan also provides facility of single, limited, regular pay of sum assured. You can get death benefit, maturity benefit, surrender benefit and tax benefit too.
#4 Aegon Religare :- Aegon Religare’s term plan provides cover up to 75 years of age and with critical illness included. Apart from that, accidental deaths, women’s critical illness are also covered. Aegon Religare has 85.93% of claim settlement ratio too. Overall, Aegon Religare is the only term plan which provides you better features and low cost premium rates.
#5 Kotal Life Insurance Preferred e-Term Plan: - Kotak Insurance is big name of Indian insurance sector. Kotak eTerm Plan provides you facility to pay premium rates in monthly or yearly. Also, same facility in sum assured to when your family receives death benefit. Kotak Life insurance has 90.69 % of good claim settlement ratio.
These are the tips to choose better online term insurance plan and top 5 best term plans in india. Hope our guide will help you to choose better term plan.
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