We list the steps involved in buying an online term insurance plan.
Buying term insurance is the need of the hour for those who wish to provide for their families even in their absence. Fortunately, buying the best term plans online is quite simple as well. You can follow these steps to buy online term insurance plans from leading providers:
- Find out everything you need to know.
Term plans are quite simple to grasp in terms of fundamentals, viz. there is no maturity benefit but a large death benefit. The premium towards the policy is quite low. You can find out the details about different term plans online, checking out the premium amounts, looking up benefits and claims procedures, and using online term plan calculators to crunch the numbers involved. Do note that while premiums for the best term plans are quite low, they rise if you are older or have pre-existing medical issues, or are a smoker.
- Weigh your options.
By now, you should have shortlisted at least 3 suitable online term insurance policy. Study each in detail once again, weighing their pros and cons against each other. Also look at recommendations from existing users to get more information about the insurance provider’s responsiveness, the claims settlement ratio, etc. Once you have studied all policy documents (available for download from the insurer’s website) you can decide which one works for you.
- Calculate the sum assured based on future needs.
The sum assured of the policy is a multiple of the premiums you pay. However, it takes much more than simple math to arrive at a suitable sum assured, so do use an online term insurance plan calculator. The sum assured should be a number at least 10 times your current annual income, factoring in future inflation and family needs in your absence. Once again, do note that the premium is higher if you are older than 30 years, or if you are a smoker or have a pre-existing medical condition. The term plan calculator can help you decide on a suitable premium amount that you wish to pay.
- Fill out the online application form.
The next step entails filling out the term plan application form. Make a note of the documents you need to upload with the application. Ensure that you fill in the latest and most correct information, without withholding or falsifying any data. Insurance providers conduct rigorous checks of the information provided, and any attempt at misrepresentation will be flagged down.
- Pay the premium and undergo a medical test.
You can finish buying the best term plan online by undergoing a medical test (which is mostly conducted at your residence) and paying the first premium towards the online plan. Once the test results are checked and the premium payment is realised, the policy is deemed active.
Byron Simpson is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance cent.