5 Steps To Follow When Buying Term Insurance Plan Online


3 min read

Updated on Nov 15, 2022

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.

Also read: Term Insurance Premium – A Key Factor To Finding The Best Coverage

Jul 14, 2021
Author Bio
Author Image

PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

Related Blogs

Would love to hear from you

Share your candid feedback. Your email address won’t be published, we promise!

All fields are required

Corporate Office : Mahindra Insurance Brokers Ltd ( A Mahindra Group Company ) Sadhana House, Ground Floor, 570 P. B. Marg, Behind Mahindra Towers, Worli, Mumbai 400018.

Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).

Insurance is the subject matter of solicitation.

For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.

Copyright © 2022 Mahindra Insurance Brokers. All Right Reserved.

Get A Call Back
Get A Call Back