You are faced with a unique dilemma: you have some extra cash that you want to spend on something useful. While you want a new smartphone for yourself, a friend suggests investing in a good term life policy. Your friend also mentions that the online term plan will cost much less than a new phone. So what do you choose?
What is a term plan?
A term life policy insures you for a specific ‘term’ or time period. During this time, if an unfortunate event happens to you, your loved ones get the sum assured of the term insurance policy, which is substantial. At the same time, the premium payment is quite affordable. The term life insurance coverage is adequate to protect your family’s future needs. Do note that term plans do not have a maturity benefit, i.e. you do not receive any of the premiums paid if you outlive the plan term.
The best term insurance plans in India also offer critical illness coverage and accidental injury protection, among other benefits.
What’s more valuable – a material thing or term insurance?
It’s now time to look at the bigger picture. In the larger scheme of things, what will matter most – a new phone or an online term plan that safeguards your loved ones’ interests? Look at it this way: a new phone will give you joy for about a week or two. But the peace and security that a term insurance policy will give your family is forever.
If you’re convinced about spending your extra cash to buy online term insurance, read the next section. Else, scroll the Internet for the best deals on new mobile phones.
How to buy term insurance online
Follow these steps to buy the best term insurance plan:
Look up plans from leading insurance providers in India. Study their plan options in detail.
Buy the most suitable term life insurance policy, accounting for benefits like spousal support, critical illness insurance and accident coverage.
Compute the sum assured of the plan. As a rule of thumb, it should be at least 10 times your current annual income. If you have current outstanding debt, you must factor that amount into the sum assured. Basically, the insured sum must beat future inflation and be more than sufficient to meet your family’s needs.
Calculate the premium payable on the policy. You can do this using the online term plan premium calculator – it helps you crunch the numbers with the closest approximation to the premiums you will eventually pay.
Pay the first premium and get the policy activated. Choose your mode of payment (monthly, six-monthly, annually) and payment option (net banking, credit/debit card, online wallet).
Fill the application form and submit the list of documents online as directed.
Once your application is approved and payment accepted, the policy is deemed active. Congratulations! You have just made the right decision for your family’s future wellbeing by buying term insurance online