15 Things to consider before buying Online Term Plan

It is always advisable to buy appropriate term plan for covering risk. Today you find many insurance company including LIC is offering online term plan. Online Term plan is easy to purchase and less costly.

Due to competitive price and easiness you might get attracted towards online term plan. Before you move ahead and finalize online term plan take a look at following points.

15 Things to consider before buying online term plan –

1. Calculate your exact life insurance need before finalizing sum assured. Always go for need based approach. As a thumb rule you should purchase life cover equal to minimum 12 times of your annual income.
2. Remember only earning members of family needs life insurance cover.  Dependent like house wives and children’s do not require big life coverage.
3. Select term plan period up to retirement once you stop earning, there is no need of life insurance cover
4. Always carry out comparison before purchasing term plan. For traditional term plan as a ready reference you can use our most viewed article – Comparison of 27 Term plan.
5. Online term plans are offered in some selected cities only. Before applying for term plan you must check available at your city.
6. Insurance is agreement on the principle faith. It is important to disclose all relevant details correctly while filling application form online including existing insurance plans and health history if any.
7. Cost is often considered as major factor while finalizing online term plan. Remember term plan purchase to have peace of mind. Consider most appropriate and trusted brand. Its ok if it plan is slightly expensive compare to other.
8. Check for claim settlement ratio. No point in purchasing term plan from company who can offer you term plan at lower cost but have history of poor claim settlement.
9. Please read offer document carefully including exclusions mentioned in it. Normally suicide within one year period is not covered.
10. Always disclose correct information like smoking, chewing tobacco etc.
11. Many online plan does not give facility for accident rider, Premium waiver or Critical illness cover. Ideally it is good to have these features in term plan.
12. On receipt of policy document check it once again for the accuracy of information provided. It is advisable to check spelling mistake on your name or on name of beneficiary.
13. Make use of Free Look period if you don’t find policy suitable to your need return the policy and claim refund.
14. You make sure that your spouse and adult children’s also know about your insurance plans and where the documents are kept.
15. Remember Term plan is for pure risk coverage and not for investment.