Term life insurance is one of the most practical forms of life insurance. You get a very high life insurance cover at a relatively lower price. Term insurance is a pure form of life insurance. It offers a sum assured in return forthe premium you pay. It is straightforward and easy to understand. If you are planning to buy a life insurance plan, you could consider getting a term plan. Read on to know how to buy the best term insurance at lowest rates.
Understanding term insurance
Let us begin by understanding how term insurance works. Like mentioned above, a term plan is a pure form of life insurance that offers a death benefit to the nominees of a deceased policyholder. If the policyholder outlives the policy period, there usually is nothing in return. Since there is no return component, most term insurance plans are inexpensive and affordable for a larger section of society. There are however some term plans that offer to return the premium back if you outlive the policy. These are known as the TROP or term insurance with return of premium. The premiums are slightly higher, but you don’t end up losing all the money if a claim is not made during the policy term
Benefits of Term Insurance Plans
The term insurance plans have many benefits. Some of them are:
- High cover at low cost: The biggest and most significant advantage of a term plan is that it offers a substantial cover at a low cost. You can get a cover of as high as Rs 1 crore for a monthly premium of Rs550. This is very affordable and allows you to secure the financial futures of your loved ones and keep them protected if anything happens to you.
- Long duration of cover: Term plans are available for long durations of time. You can buy a term cover for as long 30 years. So buy the plan when you are young and fit as it will be cheaper than when you are older and less healthy..
- Riders available: Riders are available with the term insurance plans. You can attach these add-on covers to your base term plan to customise it and enhance your life insurance coverage.
- Easy to buy: Term insurance is very accessible these days. You can buy a term plan online in a matter of a few minutes. In most cases, you won’t be asked to undergo a medical test either. Very few documents are needed and this further makes the plans easy to acquire.
These advantages indeed make the term plans a very practical form of life insurance that you can benefit from.
Comparison of Term Insurance Plans
Before you buy a term insurance plan, it is absolutely vital for you to compare the available options. Comparing the various term life policies can show you the features of each plan and also their costs. This will help you find the best plan at the best rate.
You can also find out more about the insurance provider’s credibility. It is important to buy a plan from a good insurer who has a high claim settlement ratio and convenient claim settlement process. Unless you do so, you won’t be assured of the claim being paid out efficiently later on. You get to find out the ratio and the overall popularity of the different insurance companies when you compare the term life insurance policies.
The process can be completed quickly online. It is free of cost as well. There are many reliable online aggregator websites like Coverfox.com where you just have to enter the basic details. Once that is done, the results, catering to your preferences, are displayed on the screen. You can then choose a suitable plan and make a purchase right away.
The bottom line
So as you can clearly see from the points mentioned above, there are many advantages of buying term insurance. And since the plans are easily available online, you can buy them quickly and at your own convenience. So if you are looking for a worthwhile life cover, opt for a good term life insurance policy and stay protected in a wholesome manner.