Learn All About Term Insurance
A term insurance plan is nothing but an affordable life insurance plan. A term plan assures a lump sum death benefit to the beneficiaries of the insured person in times of his/her demise during the tenure of the cover. In case of unfortunate situations like this, the financial security of the beneficiaries is maintained. If the beneficiary is alive at the end of the term period mentioned in the policy, then no benefits or lump sum amount will be given. If a person opts for premium return policies, only then he/she shall receive all amount of the premiums paid.
Steps Involved In Purchasing A Term Insurance Plan Online
Once you have locked down on the term insurance policy and the insurer, it’s now time to buy the term insurance plan.
We have mentioned all the steps involved in purchasing a term insurance plan online.
Enter your credentials
You will have to go to the insurance company’s website and select the plan you want to buy. After that, enter the details that are asked, like name, gender, birth date, and your habits like drinking and smoking. They will also ask for your contact details. Nowadays, insurers also ask for your monthly income.
Select Policy Tenure & Assured Sum
The overall term insurance policy is based on your current age. If you are very young, then you can opt for a long insurance policy term. If you are middle-aged, then you can opt for a shorter insurance policy term. When you opt to buy a term insurance plan during your youth, the premium you pay will be considerably lower. Thus, it is recommended to buy a plan as soon as you can.
Select The Insurance Payout Mode
Several term life insurance policies give you an option to select among various payout modes.
In lump sum payout mode, the entire amount will be paid to your beneficiaries in case of your demise during the policy tenure. If you have existing personal and home loans, other debts, etc., then you can select this mode. By selecting this mode, your loved ones will have enough money to pay off your debts and live worry-free.
There’s one more mode in which you can avail your family of a certain amount of money as a lump sum, and then they will receive monthly income for a specific time. If you have kids who need to go for higher education, weddings, etc., then you can opt for this mode so they will always have a constant flow of money in your absence.
Select Appropriate Riders
A term plan is already very beneficial for all. You can now get the absolute best out of it by adding additional riders to your main plan. You can avail additional benefits with these add-ons at a very affordable price. In case you have a family history of critical illness, it is recommended for you to have a critical illness add-on.
It has become easier to buy a term plan online. You can choose to pay directly with your debit and credit cards. You will receive a copy of your term insurance policy on your email ID. Once the term insurance plan is approved, you will get the hard copy through mail at your doorsteps.