How To Compare The Best Online Term Insurance Plan?

7 min read

Choosing the the Best Term Insurance Plan Online in India is not as easy as it seems. Read on and know how you can find a Term Plan that suit your need by following simple tips and comparing Term Life Insurance plans from Top Insurers of India. 

Getting a good term insurance plan is not difficult at all. This is because there are some excellent life insurance companies in India and they all offer good online term insurance plans. However, the insurance requirements are person-specific. This is why every single plan that is available may not be suitable for you. So how do you find the best cover for yourself? The answer is simple – term insurance comparison and you will find the best policy. But before you compare policy, you need to narrow down the search so that you find the most effective results. Here are some handy tips for you:

5 Tips to Compare Term Insurance Plan Online in India

1. Calculate an Appropriate Sum Assured

First and foremost, you need to have a suitable coverage amount in your term plan. To arrive at this figure, you need to see what your financial duties and liabilities are. If you die, the proceeds from the term plan will work as your income replacement and help your family, so you need to calculate this amount carefully. Take into account costs such as your kid’s education expenses, housing expenses, loans, medical costs, etc. Once you calculate these factors, you will know how much coverage you need. Then, compare term insurance plans and find a good life cover.

2. Look for Riders

Riders allow you to understand the value of life insurance before customising your term plan. As a result, you need to add some riders to your base term plan. Compare between the riders to find the most appropriate add-on covers. Once that is done, get them attached to your policy and keep your family protected in a comprehensive manner.

3. Choose the Correct Type of Term Plan

Term plans with Return of Premium are available in various types. These include the decreasing term plan, increasing term plans, level term plans and the TROPs. Understand the scope of coverage offered by each of these term plan types. Then, evaluate them against your own needs after evaluating the features of term plan and see which cover is best suited for you. Compare between the specific type and get the best policy.

4. Make a Budget

It is absolutely vital for you to make a budget before you compare term insurance plans and make a purchase. This is because you need to search for the cover within your price range and ensure the premium rate is affordable.

5. Compare Insurance Policy

It is always an excellent idea to compare insurance policy and then make a purchase. Comparing allows you to spot the best plans. Also, when you see all the options, you can evaluate the covers and make an informed, as well as, unbiased choice. Then, when you compare and buy an online term insurance policy, you save money too. This is because the online term plans are a lot cheaper than their offline counterparts.

Once you follow the tips mentioned above, finding the most suitable online term insurance policy will become easy for you. Get the plan and keep the financial wellness of your loved ones protected at all times. Don’t forget to compare, as that is the key to success.

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

6 Best Term Insurance Plans in India from Top Insurers:

Given below is a list of one of the Best Term Insurance Companies in India and their term insurance claim settlement ratio in 2020-21

Name of Company and Plan Entry Age Claim Settlement Ratio Highlighting Features
SBI Life eSheild Plan 18 years to 65 years 89.74%
  • New-age protection plan that offers 3 plan options
  • Affordable coverage up to 100 years
LIC Tech Term Plan 18 years to 65 years 93.45%
  • Plan offers 2 benefit options
  • Minimum Basic Sum Assured: INR 50,00,000
  • Special rates for women
  • Policy Term 10 years to 40 years
Bharti AXA Life eProtect 18 years to 75 years  97.35%
  • Affordable way to protect your family
  • Minimum Sum Assured: INR 25,00,000
  • Policy Term 10 years to 30 years
ICICI Pru iProtect Smart Term Plan 25 years to 74 years  97.84%
  • Life cover of INR 1 crore
  • Pays on the diagnosis of 34 Critical Illnesses
  • 4 payout options to choose from
HDFC Life Click2Protect 3D Plus Plan 18 years to 65 years 99.07%
  • 9 plan variants available
  • Covers death, disability and disease
  • Waiver of Premium on diagnosis of critical illness
Aditya Birla Sun Life Insurance DigiShield Plan 18 years to 65 years 97.54%
  • 10 plan variants available to choose from
  • Flexible death benefit pay-out options
  • Cover for 100 years 

How to Buy Term Insurance Plan Online in India?

Buying Term Insurance on PayBim is super easy and quick. Follow the steps given below;

Step 1: Visit the Company Website and go to Term Insurance or click here

Step 2: Enter your details here and click Next


How to Buy Term Insurance Online? - Step 2

Step 3: Fill in the Annual Income, Education and Occupation. Then Click on Next


How to Buy Term Insurance Online? - Step 3

Step 4: You will now be asked to enter some personal and contact details. After you enter the fields, you can click on Get Quotes


How to Buy Term Insurance Online? - Step 4

Step 5: Once you click Get Quotes, you will be shown the best-suited plans, which you can explore and compare

How to Buy Term Insurance Online? - Step 5

 

Step 6: You can then choose a plan with the best suited features

How to Buy Term Insurance Online? - Step 6

Step 7: You will then be redirected to the company page, where once you fill in the formalities and pay for the plan, you will receive the policy in your email

Also Read: Top 5 Reasons You Must Buy A Term Life Insurance Policy

What are the benefits of having a Term Plan?

The benefits of term insurance policy are many, let us take a look:

  1. Affordable Protection
    One of the most affordable ways to keep the financial future of your family secure is through term insurance plans. By paying a modest premium, you can make sure that even in your absence, your family would be financially self-sufficient.
  2. Long Term Coverage
    There are whole life plans that can cover you up to the age of 100 years, this offering you a really long tenure of coverage.
  3. Flexibility of Death Benefit Payout
    Depending on your choice and your family’s needs, you can plan the payout of the death benefit on a monthly, quarterly or annual basis.
  4. Tax Benefits
    When you have a life insurance plan, you can save taxes on the premium, the death benefit and the maturity benefit (if applicable) as per the current tax laws under the Income Tax Act.
    Premiums paid for term plans are tax-free upto Rs 1.5 lakhs a year under section 80C. In TROP Plans, there are maturity benefits, which are also tax-free under section 10(10D) since the premium is usually less than 10% of the sum assured. Death Benefit is always tax-free in the hands of the nominee, irrespective of the amount.
  5. Option to Enhance Coverage
    Many insurance plans come with the option of Increasing Term cover. You can explore and compare the different options through PayBima and make the best decision. You can also opt for Term Insurance Riders to further enhance the coverage. 

There are many benefits of term insurance plans but these are the most important ones.

Why should you compare before buying an online term plan?

When you want a term insurance policy, you would primarily want the one that covers your family in the best way possible. In the market today, there is a plethora of such plans and products available, however, it can quite overwhelming to make a decision. This is where PayBima can come to your rescue. 

You can set the parameters and get a variety of plans that suit your insurance needs. Out of the selected plans, you can further analyse the features and courage each one offers and the premium that you would have to pay. This makes it easy for you to have a clearer picture and make a well-informed decision.

Also Read: 8 Mistakes to Avoid While Purchasing a Term Plan

Disadvantages of term insurance plans

You need to understand the ​​disadvantages of term insurance plans before opting for one. 

  1. Term insurance plans have a definite tenure. So, you need to understand how long you need coverage and then choose the tenure accordingly.
  2. Term Insurance premium increases with age, i.e. premium for a 40 year old is higher than that of a 30-year old. However, once the policy is issued, premiums are fixed and doesn’t increase. So, you need to opt for a plan at your earliest.
  3. Most term plans do not have any maturity benefit. So it doesn’t directly contribute to your “wealth creation”. However, term plans are your protection against any financial distress in case the primary breadwinner of the family meets with an early and unfortunate death.

Given the above disadvantages of term insurance plans, you need to first understand your requirement and then opt for one only if you have financial dependence.

Term insurance claim settlement ratio

One of the key factors that we keep in mind when choosing a term insurance plan is the Claim Settlement Ratio. The CSR is a representation of the life insurance claims that are settled by an insurance company, in comparison to the total number of claims raised in a particular year. A percentage over 98% is considered to be a good score. In the year 2019-20, TATA AIA Life Insurance recorded a term insurance claim settlement ratio of 99.06%.

FAQs on Compare The Best Online Term Insurance Plan

At what age can you purchase a term insurance plan?

Most term insurance plans have a minimum entry age of 18 years and a maximum of 65 years.

Is a medical test mandatory for term insurance?

Routine Medical Tests are generally done by insurance companies. Though in many cases, if you are young and enjoy good general health, the company may not ask you to get the check-up done, it is best suggested that you find out about the test from your insurance company.

Is it safe to buy an online term plan?

Though it is convenient to buy a term plan online, you need to ensure that you buy the plan only from a reliable and trusted website. PayBima ensures that your transactions are 100% safe and secure.

What is the minimum income for term insurance?

The income that one should have in order to purchase term insurance is a flexible eligibility criterion. It depends on the plan that you are opting for and the terms and conditions of the company that you are buying the plan from.

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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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