How to Select the Most Suitable Online Life Insurance Plan?

It is imperative to select the right online insurance plan when you want to protect your family. Since a single plan does not suit every individual’s insurance needs, these are some important pointers that can help you understand how to choose the best term insurance plan in India:

• 01

  Research About Available Online Insurance Plans

  Every insurance provider will offer insurance plans with various features and benefits, of which you will have to see which features are most relevant for you. Be it a simple term insurance plan or a savings plan, be sure to research what each one has to offer. Understanding the exclusions of the policies can also help you make an informed choice and will save a lot of hassle later on.

• 02

  Compare the Policies to Find the Right One

  Purchasing a policy online comes with the added benefit of letting you compare different insurance policies. By comparing the plans, you can understand if the premiums you pay for your insurance policy justify the coverage, the features and the benefits of the plan. This helps you select a plan where you not only pay affordable premiums but can also enjoy the plan’s features as per your needs.

• 03

  Assess Your Needs Before Asking for Peer Recommendations

  Since your insurance needs may not be the same as that of another person, check how much life insurance cover your family needs as per their lifestyle and financial commitments instead of relying on recommendations. You may also have certain unpaid debts and loans, which can be a burden for your family later on. Keep all of these expenses in mind before choosing a suitable policy online.

• 04

  Check Claim Settlement Ratio (CSR) of the Insurers

  Your insurance provider’s claim settlement ratio matters because it indicates their ability to settle your claims effectively within the prescribed timelines. This ratio means that, in a given year, the insurer has settled the maximum number of claims out of all the claims they have received. Tata AIA Life Insurance has a Claim Settlement Ratio of 98.02% for FY 2020-21, which means 98 out of every 100 claims were settled for the year.

• 05

  Know the Right Time or Age to Buy Online Insurance Plans

  As such, there is no right age to buy online insurance plans. But in the case of term insurance plans that offer pure risk cover, it is advisable to opt for them at a younger age since you can avail of lower premiums in return for high coverage. You can consider buying a savings plan online or a ULIP plan once you have assessed your savings goals and future financial commitments.

• 06

  Cover Amount Should be Determined Based on Family’s Needs & Not Just Your Income

  Each of your family members covered under your life insurance policy may have some financial goals or needs to be met. When you research how to buy online term insurance, include all of their current and future financial requirements and not just your income to get a multi-dimensional outlook on choosing the right coverage for your loved ones so that these needs can be suitably met.