The term insurance meaning is a life policy that offers a death benefit to the policyholder’s nominees in case of an unfortunate event leading to his or her absence during the policy tenure. The term policy provides a large sum assured at an affordable price.
When purchasing such a policy, consider getting it online, as that will save you money and time. If you are uncertain about how to buy the policy online, these instructions can help.
- Determine the sum assured
Before purchasing the policy, ascertain how much cover you require. It depends on many factors, such as:
- Income
- Liabilities like loans and mortgages
- Number of people financially dependant on you
- Inflation rate of India
- Monthly expenses for household, education fees, and other bills
- Amount your family will need to lead a comfortable life
- Calculate the premium
Before finalizing the sum assured, you need to find out the term insurance policy premium you have to pay. A term insurance premium calculator can help you compare different plans to enable you to make a suitable choice.
- Provide details
Visit the website of the insurer and fill the online application form. You need to furnish information regarding your age, income, gender, if you are a smoker, and your contact-related details.
- Enter the policy tenure and sum assured
The insurer will ask how much sum assured you need. You can input the amount on the online form. You must also clearly mention the policy tenure. For a young person, a term policy with a long tenure will be more reasonable.
- Select the payout mode
A term plan generally has four types of death benefit payout options. They are:
- Lump sum: The insurance company pays a lump sum at once to your nominees
- Regular fixed monthly income: The insurer pays the death benefit in installments as a regular monthly payout for a pre-decided period
- Regular increasing monthly income: It is the same as above, but the monthly payout increases with time to help tackle inflation
- Combination: The insurance provider pays a portion of the death benefit as a lump sum and the remaining amount as monthly payments
- Choose riders
Riders can be helpful if you want to increase the benefits of your existing term policy. You can purchase the rider by paying a higher premium, which will enhance the monetary security of your family members. You can opt from riders like critical illness, accidental death, the return of premium, and more.
- Upload documents
You need to upload specific documents like identity, income, and address proofs along with the form to complete the application process. The required documents include Aadhaar or PAN card, driving license, income tax returns, and passport. You also have to provide the latest passport-sized photographs.
- Read the policy document carefully
Before finalizing the purchase of a term insurance policy, it is vital that you read the insurer’s policy document thoroughly. Finalize your purchase if you agree with the policy’s inclusions and exclusions.
- Make the payment
The final step is the pay the first premium. Generally, insurance companies offer multiple payment modes, which include net banking, debit card, and credit card. Select as per your comfort and pay online. The insurer will email you a soft copy of the policy upon approval. You will also get a hard copy by post.
By following these suggestions, you can buy an online term plan in no time. However, it is also important to find a trustworthy insurance company before investing in the policy. You can do that by comparing the claim settlement ratios of various insurers and read online reviews by other policyholders.