COMPARE & BUY TERM INSURANCE PLANS

1. It is a type of pure risk cover plan
2. High sum assured at lower costs
3. Cheapest type of Life Insurance
4. Tax rebates under section 80 C
5. Can be used to cover a home loan
6. Replaces income after the demise of the breadwinner
7. Additional riders are available
8. Critical illnesses are covered

1. Level Term Plan

   A Level Term Life insurance policy offers fixed death benefits for the entire policy tenure. Regardless of whether the insured dies on the 5th or the 25th year of his 30-year policy tenure, his beneficiaries will get the same amount.

2. Increasing Term Plan

   The coverage amount chosen by the insured at the commencement of the policy increases every year by a predetermined amount to cope with the inflation.

3. Decreasing Term Plan

   Decreasing term insurance is a type of term life insurance with the cover decreasing over the life of the policy at a predetermined rate. If you want your life insurance to cover a temporary financial liability, you can purchase a decreasing term plan.

4. TROP - Term with Return of Premium

   TROP pays back the total annualized premium excluding taxes at the end of the policy tenure if the insured survives.

1. Critical Illness Rider

   Under critical illness rider a lump sum amount is provided to the family of the life assured in case the life assured is diagnosed with a listed critical illness during the policy tenure.

2. Waiver of Premium Rider

   This rider ensures that benefits of the policy continue even if the policyholder is unable to pay policy premiums due to a critical illness or death. All the future premiums are waived off.

3. Accidental death and dismemberment Rider

   This rider pays the accidental death benefit in case the insured dies an accidental death or faces a dismemberment.

4. Partial and Permanent Disability Rider

   This rider provides an additional benefit equal to the rider sum assured on total & permanent disability due to an accident.

1. Check the claim settlement ratio of that particular company.
2. Check for rider facilities if required.
3. Cost of premium.
4. Solvency ratio of your insurer.

1. Assess your current life stage & dependants.
2. Analyze your current lifestyle and standard of living.
3. Evaluate your assets and liabilities.
4. Analyze your current income.
5. Choosing adequate risk cover.

Below mentioned are the most Frequently Asked Questions on Term Insurance -

1. What policy term should I select?

   You should choose a policy term till your retirement age or maybe till a few years after retirement. Term policy is taken to cover the risk of loss of income. So ideally take a term policy for a period in which you will be earning money. Beyond that period, the premiums paid by you will become a burden for you.

2. Why is there so much difference in premiums in online & offline term plans?

   Though the benefits are exactly the same, online term insurance plans are much cheaper than the ones sold by agents or branches. This is because of several reasons listed below –

3. Will I have a problem at the time of claim if I buy an online term insurance plan?

   No, you will not face any problem just because you purchased an online term insurance plan. Every insurance company has a centralized customer service team that attends to all the customer queries/complaints. They do not differentiate between customers who have purchased online or offline.

4. Is it secure to buy online term insurance plans?

   Online transactions are completely secure and are done directly on the insurance company’s website. Today almost all financial transactions including banking, stocks, etc have moved completely online. Even Indian Railways and Airline ticketing are completely online and lacs of people are making online payments every day.

5. What is the difference between term and endowment insurance plans?

   Both are very different offerings - they are like chalk & cheese. Term insurance is a pure risk cover and a product that is an absolute must for every individual who has any dependence relying on their income. You typically should take a term insurance

6. Why is there a vast difference in premiums of various term insurance plans?

   Insurance premium is an amount paid by the policyholder to the insurance company in return for the risk cover. Every insurance company assesses the risk differently and accordingly, decides the premium. So if Company A assesses your risk to be low, they will offer you lower premiums.

7. How much insurance coverage is required?

   As a rule of thumb, your minimum risk cover should be 10 times your annual income. While the optimum risk cover should be around 15 to 20 times your annual income.

8. Why choose MyInsuranceClub?

   At MyInsuranceClub, we strive to cut through the clutter and the jargon to help you select the best insurance solution.

   - By comparing, you can get the best term insurance plan for your needs

   - We are India’s 1st IRDAI-approved insurance web aggregator providing the best Term insurance comparison.

   - Save money by buying feature-rich insurance plans at lower premiums

   - We are unbiased and don't have favorites

   - Oh yes, ours is a free service!

9. What is the term insurance claim process?

   At MyInsuranceClub, we strive to cut through the clutter and the jargon to help you select the best insurance solution.

   - By comparing, you can get the best term insurance plan for your needs

   - We are India’s 1st IRDAI-approved insurance web aggregator providing the best Term insurance comparison.

   - Save money by buying feature-rich insurance plans at lower premiums

   - We are unbiased and don't have favorites

   - Oh yes, ours is a free service!

10. What are the payout options in term life insurance?

    There are 4 types of payouts:-

    a) 100% lump sum payout

    In this option, the nominee will receive the entire cover amount in a single payout at the time of the insured’s death.

    b) 100% monthly payouts

    In this option, the nominee will receive the cover amount on a monthly basis. The entire sum assured is divided into equal parts which is then given out as a monthly payout for a fixed number of years.

    c) Part lump sum payout and balance in fixed monthly payouts

    In this option, the sum assured is broken into two parts. One is given out at the time of the insured’s death as a lumpsum payout and the other part is equally divided in the form of a fixed monthly payout.

    d) Part lump sum payout and balance in increasing monthly payouts

    Just like the previous option, the sum assured is paid in two parts. One is paid as a lump sum at the time of the insured’s death and the other is paid in the form of monthly payouts which increases over time at a fixed rate.

11. How to buy term insurance?

    - Assess your current life stage & dependants

    - Evaluate the amount of risk cover you basis your life stage, income, dependents and future needs

    - Select a policy term (preferably till your retirement age)

    - Visit our term insurance comparison page to get various comparisons

    - Punch in your details carefully and fill the personal detail form

    - You will get an exhaustive Term insurance comparison of various plans which match your eligibility

    - Select a suitable plan which doesn’t burden your current income

    - After selecting, our trained relationship managers will contact you and guide you through the process of application and first premium payment.

To buy a Term Life insurance plan, one has to submit the following documents:

1. Plan Proposal Form duly filled in and signed
2. A passport-sized photograph
3. A valid Identity Proof
4. A valid Address Proof
5. Date of Birth Proof
6. Income Proof
7. Medical test reports if needed

You have a large number of variants among the term plans on offer. While the base variant offers a life cover, the variants add more benefits in terms of cover and payments. Some of the popular term plan variants are as follows -

1. Life Cover with one rider, say a Critical Illness Rider
2. Life Cover with multiple riders taken together, say a Critical Illness Rider and an Accidental Death Benefit Rider
3. Nominee gets payment in a lump sum or at regular intervals