1.
Why should I buy a term plan?
In today’s uncertain times, it is important to make sure that your dependents are financially protected even if you are not around. Buying a term plan is a simple and cost-effective way to protect your dependents. With term insurance, you can get a large amount of life coverage at a relatively low premium rate. You can get a ₹1 crore term insurance cover starting at just ₹490 per month, which is less than half the cost you would typically pay for an outing with your family. The benefit amount will be paid to the nominee in case of death of the policyholder during the term of the policy.
2.
What is the different between term insurance
plans and life insurance plans?
Traditional life insurance plans have both a protection and an investment component, but term insurance plans are pure protection plans that don’t give any pay out on surviving the policy term. However, as compared to traditional life insurance plans, term plans have the advantage of providing large sum assured coverage at much more affordable rates at the time of emergency or mishap accord suddenly.
3.
Do I need to purchase term insurance even if I
am covered by my company’s group policy?
Yes it is advisable to purchase an individual term insurance policy for
yourself in spite of your company providing group insurance coverage for their employees
for the following reasons:
1. Not
enough cover – The cover provided by
company’s life insurance policy (generally ₹10-15 lakh) may not always be
sufficient to sustain your family in case something happens to you.
2. Will
lose coverage if you change your job – This
coverage is dependent on your job. If you leave the job, the insurance cover
ends then and there, till you join a new job. The period between the end of the
old job and the start of the new one would be without cover.
3. Standard
policy for all employees, not customized to your needs – The
life insurance policies provided by your employer are standardized policies
which are not customized according to your specific needs and don’t generally
contain any provisions for critical illness, terminal illness and disabilities.
Hence, even if you are covered
under your company’s group policy, you must still buy a separate term plan with
a life cover that is at least 10-15
times your annual income to make sure your family is able to sustain their
current standard of living and is adequately provided for in your absence.
4. Are there any
age limits for buying a term insurance plan?
Yes,
the minimum and maximum age for buying a term insurance plan are 18 and
60 years respectively.
5. How much term
insurance cover do I need?
The term insurance cover you need
depends on your current annual income.
I recommend that a term insurance cover
equivalent to 10-15 times your
annual income is sufficient to provide for a safe future for your family. If
budget is a problem, you can go for a monthly premium payment option over a
yearly commitment. However, it is important to have a sufficient term insurance
cover so that your family’s financial security is not compromised. A term insurance premium calculator will help you in
choosing the term insurance cover well suited to your budget.
6.
What policy term should I select for my term insurance plan?
You
should insurance yourself with a
term insurance policy till your retirement age. But financial liabilities can
continue beyond retirement too. So you should select a term plan which would
cover you after your retirement age till 99
years like ICICI Prudential Life
term plan which also gives you the option to get a whole life plan till the
age of 99 years.
7.
What kind of deaths are covered in this term insurance plan?
All
kinds of deaths are covered under the term insurance plan including natural, accidental, murder, illnesses
and natural calamities. You are
covered under this plan as soon as your policy
is issued and there is no waiting
period. Coverage of death due to suicide is not available only
in the first year of policy. Also, once you buy the policy, you stay covered
whether you are in India or abroad.
8. What is the
maximum cover I can get without going for physical medicals?
For term
insurance plan there are different limits for different insurance companies,
like ICICI Prudential life term plan
offers a term insurance cover up to ₹2
crore and an additional critical illness benefit (optional) of up to ₹25 lakh with only telemedicals process.
The same can be completed from the safety of your home.
9. How to select
the best term plan for myself?
There are various factors you need to consider while
selecting the best term plan. Here are the following points:-
1. Brand: Choose
a well-known brand that is financially strong and trusted for years. Please check
the insurance’s Assets Under Management value.
2. Claim
settlement: Select an
insurance company with a consistently high claim settlement ratio and an easy
and hassle free claim settlement process. And check with the insurance company
whether you can get your claim settled within 1 day*. Check with the company’s claim settlement
ratio for last 5 years.
3. Additional
benefits: Look for additional benefits
such as critical illness coverage and accidental death coverage.
10. Is it safe to buy a
term plan online?
Yes, you can purchase a term plan online with verified payment methods like UPI, debit or credit card, or net banking. As long as you select a reputable insurance company, you have nothing to worry about.
11. How do I get a term plan online?
You can get a term plan online by visiting official websites of the respective insurance companies and clicking on Term Insurance. You can download the brochure to go through the details of the policy or fill your basic
details like age, gender, tobacco usage, income etc. in our term insurance
premium calculator and generate a customised
quote. You can then make the payment, submit the documents, and complete
the medical check-up. Your policy
will be issued once all these formalities have been completed.
12. What are the benefits of buying a term
insurance policy online?
There are various benefits of buying a term plan
online:
1.
Ease and
convenience – You can complete your
purchase in just a few minutes anytime from anywhere. The plans can be accessed
via mobile internet too.
2.
Better control – Buying
a term plan online lets you customize it according to your exact needs instead
of relying on someone else to do so.
3.
Complete
transparency – As there are no
intermediaries involved and you buy directly from the insurance company, the
entire process is transparent and you are not set up for any unpleasant
surprises later on.
4.
Full security – Your
personal and health information is private and secure.
- Online discount – Many insurance companies are providing discount when you purchase their term plan online. like (If you are an ICICI group employee, you get 10% discount throughout the policy term, even if you leave the organization after purchase of the policy).
