Protect Against The "What Ifs" At Every Stage with Term Insurance

By CIOReviewindia Team

Protect Against The “What Ifs” At Every Stage with Term Insurance

Life is full of uncertainties, which is why life insurance becomes a crucial part of your financial planning.An online life insurance policy acts as a safety net for your family the in case of your untimely demise.

Furthermore, online life insurance policies such as online term plans help ensure a safe financial future for your loved ones against life’s contingencies such as disability, ailments, and death. With the term insurance policy in place; therefore, you can make sure that your family continues to receive much-needed financial support to maintain their lifestyle, in your absence.

When it comes to online term insurance plans, and their sheer number, it is easy for most buyers to get confused about which plan to choose. While purchasing a term plan online, it is essential that you select an appropriate policy tenure and coverage amount that can help you secure your family’s financial future, as comprehensively as possible. the

Here are some tips to help you select the best insurance plan, based on your needs:

Determine Your Life Stage and Number of Family Members

The financial needs and aspirations of your dependent family members, as well as yourself, may vary at different life stages. For example, the financial responsibility of a single person is different from the married ones or one with kids. The cover amount should be selected accordingly. Remember to you’re your future aspirations in mind and plan for enhancing financial responsibility.

Calculate Your Family’s Lifestyle Expenses

While thinking about your dependent family members, the extent of a term insurance cover mainly depends on their current lifestyle. Therefore, you need to determine the amount of money necessary to sustain their current lifestyle. Remember to factor in inflation and select the cover accordingly.

Include Financial Liabilities You May Have to Your Cover Amount

Earning individuals are mostly under the burden of debts such as home loan, personal loan, car loan, or short-term personal loan. To prevent the weight of EMI repayment falling on your family, after your untimely demise, it is essential that you include the amount repayable of outstanding loans in the life insurance cover.

Check the Claim Settlement Ratio of the Insurance Company

The choice of an insurance company is crucial to your life insurance coverage, especially in times of crisis. Before investing in an insurance plan, you need to be sure of the insurer’s capabilities in keeping their promise of providing the coverage benefit to your family. To make sure that the insurance company has an effective claim settlement process, you need to carefully review their year-on-year online term claim settlement ratio. The claim paid percentage represents the numerical value of claims settled against those filed within a particular financial year. Higher the claim settlement ratio, higher are the chances of your family receiving the insurance benefit.

The benefits of buying a life insurance policy are not only limited to provide protecting one’s family. Reputable insurers such as Max Life Insurance offer online life insurance plans with an array of benefits; you may be unaware. For example, online term plans provide tax benefits in the form of deductions on the premium paid towards the insurance policy under Section 80C. Furthermore, the maturity benefits from these plans are completely tax-exempt under Section 10(10D) of the Income Tax Act 1961.

Also, if you choose a term plan with TROP (term with return of premium) benefit, you would receive the total amount of premium invested under the plan, upon surviving the policy tenure. Traditional term insurance plans do not offer any maturity benefit.

Furthermore, with the advent of smart term plans, you can now avail a critical illness cover along with your term insurance plan. The critical illness cover provides financial assistance in case you are diagnosed with a life-threatening ailment such as cancer or kidney failure, during the policy tenure. The additional insurance payout helps you opt for the best possible treatment without worrying about digging deep into your pockets.

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