The fast-paced life has led us to walk on the threshold of life and death. It is difficult to predict what will happen and when. To overcome the uncertainty of meeting any unfortunate event and to avoiding financial crisis likely to happen, one needs a contingency plan. This is where buying a life insurance policy has become a necessity nowadays.
Traditionally, purchasing any insurance policy was trouble. You all the way had to meet an agent and decide upon the right policy. Furthermore, filling the application form to buying the plan was another concern. Again, it may lead to misselling the policy if the agent doesn’t understand your needs properly. The agent may recommend something else which is inappropriate for your needs.
Choosing the policy on your own and buying it is always the better option. Online term plans can be purchased by reading the terms by yourself. Hence, due to the increasing demand for online insurance plans, many insurance companies have introduced their term insurance plans online.
Understand What a Term Insurance Policy Is
Term life insurance is one of the most popular plans, which comes at a lower cost and offers greater benefits. Term insurance plans can be availed for a particular duration and offer only death benefit to the life insured. If the policyholder survives the tenure, the survival or maturity benefits are not paid. This is the reason why term plans are less expensive than cash value policies.
Term life insurance is the best way to secure your family’s future financially as it comes with comparatively lower premiums and excellent life cover. Though it is not a cash value plan, term plans have a huge demand in the market. If you are in the early stages of your life and possess several financial responsibilities, term plan helps you a lot. A cash value plan offers maturity benefits but comes with larger premiums. Such higher premiums are not affordable for those people who are standing on the threshold of their life and career.
How Does Online Term Plan Differ from Offline Buying?
The world has become tech-savvy; the internet has boosted the e-commerce, and insurance is not an exception to this. Almost every insurer offers term insurance plans online. However, most of the people prefer the offline way of purchasing the policy because somehow they don’t find the online way secure. Here are some facts about online and offline
Dealing Directly with the Brand
When you buy term life insurance through an agent, you just follow the instructions and information given by a third person. It is not the case of dealing directly with the insurance company. Whereas, in the online method, you buy term plan from insurer’s website; hence, the communication takes place between you and the company. Nowadays, several aggregators offer insurances, but again the insurance company controls the aggregators, and ultimately you deal with the insurer himself.
It can be observed that buying a term plan through an agent is quite costly. The agent explains you several plans as well as he does all the paperwork when you choose a term plan to buy. Therefore, the commission of the agent and other costs are incurred in the premiums. This is not the case when you buy term insurance online. All the commissions, distribution, and paperwork costs are saved; hence, the premium rates are considerably low.
Claim Settlement Ratio
Claim settlement ratio is a parameter to determine the number of claims paid by the insurance company against the claims made by the nominees of the life insured. It may happen that the agent would not disclose all the information regarding the term plans, subject to his interests or by any other reason such as inadequate information. On the other hand, you can check the claim settlement ratio on the insurer’s or aggregator websites, and decide which insurance company you should go with.
The payment can instantly be made when you buy term insurance online. In case of an offline process, the agent would take either a cheque or cash from you, which will lead to a more protracted process further.
Finding Appropriate Plan
An agent may misinterpret your requirements and sell the wrong insurance plan. But while purchasing the term plan online, you can compare several plans, and according to your requirements, you can choose the right plan.
There are numerous advantages of buying term insurance plans online such as you get to know the exact product, life cover, claim settlement ratio, secure and fast payments, and most important at lesser premiums. But to get the right plan, you need to analyse which plan suits you the best. Here is the solution for it-
Term Insurance Premium Calculator
The term insurance market is cluttered, and you need to be very careful while choosing the term plan. To help you get a suitable term insurance policy, many insurance companies and aggregator websites have introduced term insurance premium calculators. It is nothing but a toolkit that gives relevant results that suit your needs best. Following are the advantages of Term Insurance Premium Calculator.
Term insurance premium calculators are easy to use. You get all the necessary information regarding the desired term policy by just filling the required fields. The data may be premiums, policy tenure or the duration, or payout options.
Compare and Analyse
Term insurance premium calculator provides several term plan options from which you can decide which plan is best suited for you. You can compare different plans based on the parameters like premium amount, the sum assured, payout policy and all.
Opting for the plan with less coverage may lead to compromising on the lifestyle of your loved ones. Similarly, abundant cover may lead to extra and unnecessary costs regarding premiums. With the help of term insurance premium calculator, you can determine the appropriate sum assured for you.
You get different values by changing specific details such as, by changing the desired life cover and tenure, you get different premium amounts.
Understanding the Product
Different suggestions made by term insurance premium calculator help you know the product in a better way. This helps you in making the right decision.
Now that we have seen how term insurance premium calculator is a perfect tool that helps you opt for the best term plan let’s see what the steps to use it are.
Steps to Use the Term Plan Premium Calculator
The entire process of using the term plan premium calculator, and finding some ideal quotes will take a maximum of 15 minutes.
- Firstly, you need to feed the required personal information such as your gender, date of birth, annual income, marital status, number of dependents, expected life cover, and so on. Sometimes, the insurer may ask you about your smoking/drinking habits. After submitting the first form, you will be redirected towards the new page.
- Secondly, you will be asked about your desired sum assured. Similarly, you have to disclose how long the life cover is needed. The type of payout is requested, such as how the benefits would be paid to the beneficiaries, e.g. as monthly income or lump-sum one-time amount. After filling all the required fields, you need to hit the CTA and wait for results.
- Finally, the term plan premium calculator gives you some suitable options for your requirements, by analysing all the information you have provided earlier. Here, you have to compare systematically between several term plans available. Once you choose the desired plan, you can continue to buy the plan.
It is always advised to figure out the things precisely. The results provided by the term plan premium calculator are dependent on the inputs you provide. Thus, to avoid any ambiguities after purchasing the inappropriate plan, use the term plan premium calculator and compare multiple plans and choose the right one. Opt for the plan that meets all your expectations, by just following the three steps given above.
To conclude, term insurance is the best suitable way to secure the financial future of your family behind you. Term plan calculators help you get the best suitable online term plan, and ultimately safeguarding your loved ones financially, with an adequate amount. Most importantly, all this can be done online, within a few minutes! So, why to wait for? If you haven’t purchased any term insurance plan, get it today!