Tag Archive | "Term Insurance"

How good is online comparison for buying a term plan?

  • Easypolicy
  • 11 Nov 2014

erm insurance has become increasingly popular in the insurance sector so much so that some plans are available exclusively online. Buying Term plan online is convenient, easy and costs less than buying from an agent or broker.

Insurance companies have their own websites where the insurance plans are available for purchase. Apart from that there are online companies that bring together insurance policies of different companies under one roof so that a person can purchase an insurance Policy after comparing it with other policies under the same category.

When comparing online plans, one must keep the following factors in mind before purchase:

1. Every insurance policy has its own limitations. Hence, buying the right policy would provide a win-win situation for the company and the customer. 

2. The customer must be clear about his requirements so that it is easy to compare the different insurance policies according to their needs. Only then the process of comparison becomes effective.

3. It is necessary to cross check the insurance policy of a company with what is put on an aggregator site for comparison. This can reduce any problems occurring because of wrong information given to the customer.

4. When comparing term plans, it obviously is wise to choose the one with the lowest premium, as long as other features of the policy do not vary so much from one company to another. For this, one has to thoroughly research all options available before making a decision.

5. One must keep in mind that online plans are not customized to the individual needs, and one cannot bargain over the Premium charges with the insurer. Hence, it is important to read and understand the term policy in detail before choosing to buy one.

6. Aggregator sites need not necessarily have all the available insurance products for comparison .So, it is necessary to have prior knowledge of the insurance companies before comparing them.

7. When comparing Term Insurance plans, one has to keep in mind that Riders like accidental benefit and others may not be available online as a bundle. So, when purchasing a policy, it is necessary to opt for an insurance cover that best suits the needs and not base decisions only the cost of the policy.

8. It is necessary to ensure that all details are available for comparison. If some essential details of the policy are missing, then it is better to avoid purchase and go for a policy where all clauses are clear to the buyer, or, engage in further research for better decision making.

Although comparing insurance plans before purchase is advisable, it takes an informed eye to review the policy before purchasing it online.

How to buy term insurance plans smoothly and safely!!

  • Easypolicy
  • 06 Nov 2014

Term plan is an insurance Policy with limited Coverage period in contrast to a life insurance plan that provides insurance cover till death. The premiums for these plans tend to be lower and hence more attractive to the buyer. With the advent and proliferation of the internet, the Term plan options are available online for purchase, so one does not have to go through an Insurance Agent or broker to choose a plan suited to them. One could also save money buying an online insurance as it is cheaper than buying from an insurance agent.

However, ease of purchase does not substitute the need for knowledge. One who wants to choose a term plan should know how to decide on term insurance, since there is not going to be any advisor around to explain the pros and cons of an insurance plan.

1. It is important to know accurately all health related details before filling in an online form, since many companies offer an insurance cover assuming that the applicant is healthy. So, it is necessary to provide accurate health information so that your insurance cover application does not get rejected.

2. It is wise to buy a higher insurance cover for a lower price than to buy a lower insurance cover based on the assumption that Premium will be low. The very purpose of bypassing an agent and purchasing an online policy gets defeated.

3. Checking the availability of the plan in the place where you reside is important as some plans are available only for selected cities. There is no use of buying an insurance that does not cover your geographical location.

4. When buying Term Insurance online, the payment is usually done with a debit or credit card, or through internet banking. Hence it is necessary to have these toosls ready before opting to buy an insurance policy online.

5. A good research involving various companies, the insurance policy benefits that they offer, the cost and its suitability to the purchaser’s needs is essential. There are many online portals which help the person to compare different insurance policies offered by different companies before purchasing it. The insurance companies also have their own websites from where online purchase can be done.

6. Reviewing the policy by reading the user comments online, scrutinizing the details of the policy before choosing one and working out an economical solution based on financial requirements, age of insurance applicant and Inflation rate are also some factors that help in smooth and safe policy purchase decisions.

Purchasing a plan can be easy if we know how to get the right information about the policy and the company before purchasing according to our needs.

All about Comparing a Term Plan

  • Easypolicy
  • 01 Oct 2014

A Term plan is plain vanilla insurance product. It is an ideal product for those who are seeking pure Risk cover against death at the lowest cost.

If you are contemplating buying a Term Insurance you should be aware that not all term plans are the same. Term plans vary from each other in several aspects. Before you choose one for yourself, make sure to have compared them. It is common to see people getting lured by the low premiums and buying any term plan. They only realize later that their chosen term plan does not really provide adequate cover for their needs.

The insurance sector in India is very competitive and companies have tailored term plans to suit to the varied requirement of people. So before you buy one, make sure you compare and buy the one that most closely fits to your requirement.

How to compare term plans

You need to compare term plans on the following three aspects.

1. Tenure of the Policy

If you are quite young when you buy your term plan, it is advised that you buy a plan that offers the longest tenure. The risk of death increases proportionally as you get older. Since the Premium of the term plan remains the same throughout the tenure of the plan, your life would be covered at the same premium when you get older and the risk is higher. Hence, when you buy a term plan even before you compare the premium, compare the tenure.

2. Claim Settlement Track Record

The claim settlement track record tells you the probability of your Dependants receiving the promised sum Assured in case you were to meet with an unfortunate early death during the tenure of the term plan. If you are buying a term plan do make it a point to compare the claim settlement ratio. It is best to avoid buying a term plan from a company which has a dismal claim settlement ratio. Rather than limiting your choice to the one with the best claim settlement track record, it is better to target a minimum claim settlement ratio. I think you should avoid buying from a company that has a track record of settling less than 90 percent claims.

3. Premium of the Policy

Finally, when you have short-listed policies that offer just the right tenure and has a decent claim settlement track record you should start hunting for a bargain. You can do an online comparison of the premium rates and choose the one that offers you life cover at lowest cost.