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4 Lesser-Known Features of Online Term Insurance Plans
Term insurance plans act as a safety net for your family to fall back on if the day comes when you are not there to tend to their needs anymore.
Planning for the future in advance has become more essential than ever. To make sure that you and your family are financially stable throughout your life, staying prepared for unexpected situations with smart investments would help you avoid financial burden in case of any uncertainty.
By staying heathy, you can protect yourself and your loved ones. Investing in a term plan would ensure that you have a financial backup for unwarranted situations. Term insurance plans act as a safety net for your family to fall back on if the day comes when you are not there to tend to their needs anymore. You can compare different plans and their benefits, suiting them to your unique requirements and buy term plan online.
Before, everything was offline. Hence, it was a task to visit each insurer and understand the plan. You will find different plans offering attractive benefits online; however, you must carefully compare plans and research before you decide to buy a term plan online.
If you are unsure about the term insurance meaning and want to get an idea about its features and benefits before you buy term plans online. Read on.
Generally, most online term insurance plans in India offer the following benefits:
· Whole Life Cover: When you buy term plan online, you will know that all term insurance plans offer substantially longer coverage. Many whole life insurance plans offer coverage till the age of 99 years.
· Critical Illness Cover: If you opt to buy term plan online and include the optional critical illness cover, you will get a lumpsum amount upon diagnosis of any critical illness. However, the illness should be specified and covered in your plan.
· Accidental Death Benefit: Most online term plans in India allow you to add the accidental death benefit to the plan you buy. It offers financial protection to your beneficiaries against any mishaps in the future.
· Tax Benefits: If you research thoroughly before you buy the term plan online, you will know that you can avail of certain tax benefits. Section 80 C and 80 D of the Income Tax Act offer specific considerations in the form of deductions.
These were some of the general benefits that you get when you invest in a term plan. On the other hand, you also need to know some lesser-known features of term plans:
1. Affordable
If you browse options to buy term plan online, you will find that it is pocket-friendly compared to other life insurance plans. Term insurance plans in India do not come with an investment component, even the premium is much lower than other insurance plans. But as keeping your loved ones financially safe and independent in dire situations is a top priority, investing in a term plan assures that you keep your loved ones financially backed for when you are not around.
A tool that will help you understand your requirement better is the term insurance calculator provided online. When you buy term plan online, you will find that most insurance companies offer this on their website. It will help you do your financial planning carefully and enable you to make an informed decision.
2. Multiple Premium Payment Options
When you buy term plan online, you can choose between multiple premium payment options. The term insurance plans in India have different payment options to suit your convenience. Considering this factor before you buy term plan online is essential. The regular premium payment option involves the premium payment monthly, bi-monthly, half-yearly, or yearly.
Some insurance companies offer a limited payment option, as well. You pay the premiums for a shorter time but enjoy the benefits for a longer time. You can also opt for a single premium plan wherein you pay the entire premium at once. Make your calculations upfront before you decide to buy term plan online.
3. Flexibility to Choose Payout
Before you buy term plan online, you should check the different payout options available. The alternative that you choose will determine the financial security of your family in your absence. Typically, you will find two payout options to choose from – monthly income and lumpsum. Your family will be paid a pre-determined amount of money monthly for a particular period in the fixed monthly income plan option.
You enable the nominee to receive the total death benefit in a lumpsum amount in the lumpsum payout. Your family can tackle inflation with this plan.
4. Additional Riders to Strengthen the Policy
When you choose to buy term plan online, you can also opt for riders or add-ons to enhance the policy coverage. Generally, all term insurance plans in India offer this additional feature. You can strengthen your policy with the waiver of premium rider. It waives your obligation to pay any further premiums if you become critically ill or disabled.
If you are diagnosed with an ailment, having a term plan with this coverage will prove to be extremely beneficial. And since you cannot predict the future, having an accidental death benefit rider will be wise. It will ensure that your family is well looked after when you are not around.
When you buy a term plan online, make sure you opt for a trusted brand with a strong financial background. Check the consistent track record of claim settlement ratios to know the number of claims settled by different insurers. It will help you choose a reliable insurer to keep your family secured!