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.
This entry was posted on Sunday, June 29th, 2014 at 3:00 pm and is filed under Insurance, Term life insurance. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.