5 Steps To Follow When Buying Term Insurance Plan Online

3 min read

Comparing term insurance is one of the best ways in which you can get a good term insurance policy. However, a comparison isn’t the only thing that you should do when you buy term insurance policy online. What are the other important steps to follow when you compare insurance plans and purchase a term cover online? Let us find out:

1. Know your needs

The first step in the right direction is to get a list of requirements made. Every family has different financial requirements. Your family’s needs won’t be identical to those of your friend’s family, so you cannot blindly opt for the term insurance policy he did. List down the number of dependents you have, their expenses such as school fees, medical bills, etc. Also factor in the rent, EMI, loan liability, lifestyle costs, etc. Once you calculate these figures properly, you will know what kind of term cover you need. Then, you can get a suitable policy with ease.

2. Fix a budget

The next step you need to follow is to make a budget for yourself. As mentioned above, the insurance needs of different people vary. As a result, the insurance providers also offer different types of term plans at different rates. You need to understand what your spending capacities are. Obviously, you would like to have the biggest and the most cm term life plan for yourself, but if that isn’t affordable, you should look for a cover within your budget.

3. Look for riders

Term insurance riders make your cover more suited for your exact requirements. This is why you need to explore the available riders and then buy the riders that are of most value to you, along with the term insurance policy. For this, you need to understand the scope of coverage of each rider.  The common term insurance riders include the accidental death benefit rider and the critical illness rider, among others. Riders are add-on covers that are available at an added cost, so you need to keep your budget in mind when choosing a rider.

4. Choose the correct cover and tenure

Just as you need to choose the correct type of term plan, you also need to be very careful when choosing the coverage amount. If you need a sum of INR 5 crores to cover the financial needs of your family, make sure you get a term cover of that volume. Both, underinsurance and over insurance, are harmful. Similarly, you also need to get the perfect tenure. Your term cover should be active till your dependents need it.

5. Compare insurance plans and buy

And last but not the least, never buy term insurance policy online without comparing the available term insurance plans. When you compare insurance plans, you get to see all the options. Also, you get to make the purchase online which further proves to be profitable. The term insurance plans online and cheaper than the offline plans.

Now that you know more about the exact steps to follow when you buy term insurance policy online, go ahead and make a purchase right away.

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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