Category Archives: Term life insurance
Many people often realized that when they were buying a certain term plan, they often got confused with certain terms and conditions, hence they ended up buying another plan that often did not suit to the best of their requirements. Some people delay buying it, thinking that will get enough time later, compare and study various features offered by other plans.
Keep in mind that uncertainties and unexpected situations come all of a sudden. So instead of delaying it, being proactive is always helpful. If you know what you exactly need, buying the right online term plan is not at all difficult.
Whenever you are looking to buy an online term plan, understand your needs and do a thorough comparison and make the right decision. Here we will compare the different products of four major insurance companies, i-Life secure of Aviva, Online Term Option III of Max Life, Reliance Life’s Online Term and Bharti AXA’s eProtect.
For example, a non-smoker of 30 years of age needs a term plan of Rs. 1 crore. When you are 30 years old, you often have many responsibilities to take care of. Till the time you are 55 years old, you might have taken care of many of these responsibilities. So, coverage of 25 years is ideal for a 30 year old person.
Maximum entry age: It is important for those people who have not bought any life insurance products till the age of even 40 or 60. Your age is a very important factor for any insurance company to calculate the premium. I-Life term plan can be bought till the age of 50 years. Max life offers this plan till 60 years. Reliance Life’s online term plan is available till 55 years and Bharti AXA offers this plan from 45 to 65 years.
Maturity age: A plan with the maximum maturity age is ideal for any individual. i-Life and Online Term Option III have maturity age of 70 years and Reliance Life and Bharti AXA have maximum maturity age of 75. If the insured dies with the maturity period, his nominee to entitled to get the sum insured and other benefits.
Premium payment: Online term plans are usually available at a cheaper price, but there can be difference in rates due to an applicant’s medical condition. For a 30 year old non-smoker with no disease in his family history, premium will be lesser than someone having some kind of disease in him. Premium payment for Aviva i-Life Secure can be done half yearly or annually. For the other three plans, premium can be paid only once in a year.
Policy term: Generally term plans are bought for period ranging from 10 to 30 years, but each company has its different feature structure. Premium for eProtect and Online Term Plan is on the higher side, and if you compare the policy term, these plans offer longer period for coverage. One will easily get tempted to buy Aviva’s i-Life Secure but if your preference is highest maturity age or longer period of coverage, you can buy any of the other three policies with the lowest premium.
Death benefit: At the event of death of the insured, every company will pay the sum insured. But every company has its own way of paying the sum insured. i-Life Secure pays a lump sum of 10% of the sum insured at the time of death and the rest of the amount is given by paying 6% of the sum insured at the end of every year for 15 years. Online Term Option III provides the chosen sum insured as benefit and the rest of the sum insured is received by the nominee at the end of every month for 10 years. Reliance and Bharti AXA provide a lump sum benefit at once.
If you want to receive the benefits in monthly installments, the second plan is most suitable. If someone has alternate source of earning, then he can receive the sum insured annually.
Free Look period: All the four policies come with a 30 day grace period, but there is a difference in the free look period. It is the time period when you can study the details of the policy after acquiring it, and if you are not happy with this product, then you can return it within this specified period. I-Life Secure and Online Term Option III offers this free look period for 30 days. Reliance Life and Bharti AXA offers 15 days free lock period whereas Max Life offers 30 days free lock period.
Availability of riders: This is an additional option one can choose to have or not. Some companies will give you the choice while others will add the riders to make the plan more useful. Keep in mind, when the riders are added, premium amount will increase. Max Life’s Online Term Plan III comes with Accidental benefit rider. It is a good option as the premium amount is not that high as it would be after having another separate accidental plan.
Conclusion: When you buy a plan with any company, make sure that you have a fair idea about the company, its brand, market share of the company. Read the reviews and ratings on websites like ICRA. Choosing the right plan is a tedious task, but if you really care about your family and their future, take out some time from your busy schedule and take this sensible decision.
There are different types of insurance policies for all kinds of people. Some of them are expensive while there are a few others that can be quite economical. Term life insurance policy premiums are much cheaper than cash value policies. These kinds of insurance policies will take care of your beneficiaries after your death. If you are looking for a low cost term life insurance policy, here are a few basic things you should keep in mind.
If you purchase a term life insurance policy with a specified time period, you will be paying the premiums for that certain period of time. During this time, if you die, your beneficiaries will receive a death benefit.
Term life insurance policies, like all other types of insurance policies, come with certain benefits as well as loopholes. Take for instance you want a basic 10 year low cost term life insurance policy with the death benefit to stay the same throughout the term life insurance policy, and at the end of the term you would like to “convert” to a different term life insurance policy such as a cash-value policy, without taking another medical exam. In that case you would choose a level term convertible life insurance policy.
Term life insurance policies do not come with any tax benefits like universal or whole life insurance policies. This is good for someone who needs a life insurance but cannot afford the higher premiums. The points given below will help you in deciding whether a term life insurance policy is good for you.
1) If you are on a fixed budget and cannot afford higher premiums, then a term life insurance policy is the best choice
2) You are young and in a good healthy condition.
3) If you need a simple, low cost life insurance plan in order to protect your beneficiaries, then this kind of insurance will be the best fit for you.
Consult your insurance agent for a term life insurance policy and get all your doubts clarified before purchasing one.