Term Life Insurance Policy Online
Term life insurance or Term insurance has become the most famous life insurance policy in recent years due to the coverage offered under the term insurance and the premium associated with it. Originally there were only money-back policies and savings products offered by the life insurance companies in India, but in 2009 the first term insurance product was introduced by Aegon Religare Life Insurance Company. After a few years with the entry of other private players in the market the popularity of term insurance has increased many folds due to the innovative methods adopted by the life insurance companies.
Term insurance has been the best tool to spread insurance awareness in the Indian market. In the beginning, only the offline term insurance was available that too with the medical tests but later with the advent of technology and online sales, term insurance is now offered up to a certain limit with tele medicals where the insurance companies take a health-related declaration from the customer through the phone. Due to the increased awareness among the general public in India, term insurance has become the synonym for life insurance.
What is Term Life Insurance?
Term insurance is a contract or agreement between the Life insurance Company and the customer in which the life insurance company agrees to pay a definite agreed amount in the event of the death of the policyholder in return for a nominal premium from the customer. Pure term insurance is a policy where the claim amount is payable to the nominee in case the policyholder expires during the policy period. The term life insurance meaning is to provide financial security to the family in case the policyholder meets with any unfortunate event during the policy period in return for a nominal premium.
Since the pure life insurance term policy doesn’t provide any returns to the policyholder the premiums associated with it are quite low as the mortality rate is manageable. There is a mindset block among Indians that the money paid for a term life insurance policy will not be returned if the policyholder survives the policy term and therefore the money paid is simply paid to the insurance company. But the common man here needs to understand that the money is paid for life coverage and the same is provided by the insurance company.
This mentality among the people has led to the introduction of Money-back best term insurance policies in India by the top term life insurance companies in India. The money-back best term life policies utilize a component of the premium for life coverage and the remaining component is utilized for investing the amount so that if the policyholder survives at the end of the policy period, the entire premiums paid by the policyholder will be returned to the policyholder and in case if the policyholder expires during the policy period, the sum assured mentioned in the policy agreement will be paid to the nominee.
For instance, if the pure term insurance premium costs Rs.5000 per annum for a sum assured of Rs.30Lacs for a 26-year-old person, the money-back term insurance premium would be around Rs.10000 for the same terms and conditions. In the money-back term insurance plans, the customer is paying extra money only to get it back if he/she survives the policy period.
Most of the educated people have understood this logic and are opting for pure term insurance over the money-back term insurance policies since the premium involved in the best term policies is less and high coverage can be obtained from the best term life insurance policies. Most of the financial planners in our country suggest including a pure term plan policy while making financial decisions and investing the remaining amount elsewhere for greater returns.
Term Life Insurance Calculator:
Term life insurance premium calculator used to calculate the best term life insurance rates. Term insurance premiums can calculate from the online portal where we have a team of dedicated agents to help you with your life insurance requirements. The term insurance premium is calculated based on the age of the customer; Sum assured opted, Gender, and Food habits. Let us understand each of them clearly:
- Age: Term insurance premium is based mainly on the age of the customer. The lower the age of the proposer, the lower would be the term insurance premium. This is due to the increase in mortality rate with the increase in age of the people. The chance of death at 50 years is high compared to the chances of death at 25 years of age. This is due to the diseases at old age which increases the chances of death. It is advisable to get the best term policy in India at a very young age to reduce the premium amount payable during the policy period.
- Sum Assured: Sum assured is the maximum liability of the insurance company in case of the death of the policyholder. The sum assured selected by the proposer decides the premium under the life insurance policy. Higher the sum assured, higher would be the premium to be paid under the term insurance policy. As a thumb rule, one can take sum assured up to 25 times his/her annual salary and anything above this needs to be justified. Sum assured has to be selected carefully by the proposer at the time of policy purchase as the interim sum assured enhancement might not be available with the insurance company.
- Gender: Term insurance premium changes with the gender of the proposer as well. This is due to the loss ratio experienced by the insurance companies. The premium for Male proposer of the same age and same sum assured would be higher than that of the Female proposer due to the mortality rate being high in the Male population in comparison to the female population.
- Lifestyle: The lifestyle of a person decides the life insurance premium to be paid. Lifestyle includes Smoking and drinking habits, indulging in hazardous works, etc. For instance, the life insurance premium of an avid smoker and drinker would be high compared to that of a teetotaler or occasional smoker and drinker. This is due to the increase in the risk of death due to the diseases and illnesses that can be caused by drinking and smoking. Life insurance companies reward those who don’t smoke and drink with less premium and penalize those who drink and smoke heavily. People engaged in hazardous activities may be charged heavily due to the increased risk of death associated with those jobs.
How to Choose Term Life Insurance Policy
The best term life insurance quotes should be well balanced in all aspects such as the Premium, Coverage, Add-ons, or Riders and Claim settlement ratio. The best term plan policy quote can be obtained from the online portal which provides the term insurance quotes from the best term life insurance companies in India. Let us understand each and every aspect which should be considered while taking the best term life insurance in India:
- Premium: The premium for a best term insurance quote should be at par when compared to that of the other life insurance companies. The premium for term insurance is quite less when compared to the other forms of life insurance policies as in term insurance there is no savings component involved.
- Coverage and Riders: The coverage offered under the term insurance policy would be the death benefit in case the policyholder expires during the policy period. But few of the insurance companies offer extra coverage in the form of add-ons or riders without charging any extra premium from the customer such as Waiver of premium rider which means that in case of disability of the policyholder or diagnosis with critical illness, the future premiums under the term insurance policy are waived off by the insurance company. The best term plus life insurance quote is the one that offers extra coverage without charging any extra premium.
- Claim Settlement Ratio: One more important thing to check before purchasing the term insurance plan is the claim settlement ratio of the insurance company. The higher the claim settlement ratio, the higher would be the chances of your claim getting settled. Claim settlement ratio between 95-99% would be the safe bet while taking the other factors into consideration. The best term life insurance company in India provides an excellent claim settlement ratio and you can compare through online term life insurance comparison.
- Tax Benefits:
Section 80 C of the Income-tax allows tax exemption up to Rs.1.5Lacs per annum on your term insurance premium paid. The exemption can be availed for the premium paid on you, your spouse, and your children. Tax exemption can also be claimed for the Critical illness add-on premium paid under your life insurance policy. Under Section 10(10D) of the Income-tax Act, the premium paid for the critical illness rider can be claimed for tax exemption.
The Government of India has been encouraging people to purchase a life insurance policy to provide financial stability to their families in the event of the sudden demise of the policyholder. To encourage more and more people into buying life insurance policies, the tax exemption for the life insurance premium is also provided under the Income-tax act.
How to Buy Term Life Insurance Policy?
The process of buying a term life insurance policy online has become simple with PolicyBachat. For buying a life insurance plan online please visit Life Insurance and follow the below steps.
- Step1: Enter the details such as Gender, Annual income from all the sources, Alcohol consumption and tobacco consumption, Salaries or Self-employed, and Date of Birth. After this, you need to enter your contact details to facilitate a call from our agent.
- Step2: Now the premium from different insurance companies will be displayed on the screen. You can edit the details such as Coverage, Term, Premium payment method, Mode of claim settlement, etc., and submit the details to get the desired premium. The premium can be changed by changing other factors such as Coverage required, mode of payment, etc.
- Step3: The next step is to select the best life insurance plan and pay the premium to the insurance company before proceeding to fill the proposal form details.
How to Renew Term Life Insurance
Term Life insurance renewal has never been simple as it is now. With the advent of technology, the term life insurance renewal process is simple. You can renew your life insurance policy online without worrying about the need to go to the insurance company to pay the premium. To renew your life insurance policy online please contact our agent who can assist you in the renewal process. Insurance companies send a payment link to the customer to renew the life insurance policy; once the payment is made renewal intimation will be sent to the customer. Renew term life insurance policy through multiple options using Net banking, Credit card, Debit card, UPI wallets, and bill pay online.
For the best term life insurance policy in India please visit our portal Life Insurance where we have a dedicated team of agents to assist you with your life insurance requirements.