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How to Compare Term Insurance Online

Buy Term Plan Now
  • 9th Mar 2021
  • 1,737
How to Compare Term Insurance Online

A term insurance plan is a life insurance instrument that protects your loved ones in your absence. It is specifically designed for the chief earning member of a household and aims to protect their income in the unfortunate event of their demise. If you are no longer around to take care of your family financially, the sum assured from a term plan will ensure that they have the right financial support (as chosen by you) in their hour of need. Term insurance plans are also one of the most affordable forms of life insurance. This makes them highly popular and sometimes difficult to choose from a variety of products available in the market.

This is why it is often suggested to thoroughly compare term insurance plans before making the decision to buy one.

Why is it important to compare term insurance plans?

Here are some reasons why you must compare term insurance from different insurers to find a policy that is best suited to your needs:

  • You understand what you need: Buying a term plan is a crucial task, one that will secure your family for years. However, not many people know the numerous features that a term plan can offer. Incorrect or incomplete knowledge of plans may lead you to buy a product that is not comprehensive enough for your needs. A term life insurance comparison can help you understand different policies and know what they have to offer so that you pick the ideal one out of the lot.
  • You get a good price: The age-old practice of evaluating every option before buying is vital even when looking for a term plan. When you compare policies, you can gauge which plan is the most cost-effective in regard to the features and benefits it offers. Comparing plans online lets you see how each plan fairs against the other. This way, you select a policy that not only fits into your budget but also requirements.

How to compare term insurance plans?

An online term life insurance comparison is an easy and straightforward affair. It can be done anytime and anywhere. Here are some things you should keep in mind before you buy a plan for yourself.

1. Compare prices and buy a plan that suits your budgetary limitations.

When you compare term insurance plans, you can get to know the price at which an insurance company is offering you a plan that is tailor-made for your necessities. Most insurance providers allow you to customize the plan by choosing a policy term, the sum assured, riders, etc. However, the things you choose may later reflect on the premium that you pay for your term insurance. By comparing all offerings online, you can get an estimate of each plan. You can then choose a product that seems the most inexpensive in price and rich in its advantages.

2. Compare the sum assured so you can understand your future needs better.

The most commonly selected figure for the sum assured in India is ₹1 crore. It is largely believed that such a sum is enough to secure the future of your spouse, children, and other dependents. While this figure is significant to meet most costs, it may or may not be ideal for everyone. When you pick a sum assured, it is essential to know your family’s overall requirements. Moreover, since the sum assured directly impacts your premiums, picking a higher or lower sum assured, could also depend on your income and other expenses. When you compare plans online, check the sum assured offered by each insurer and compare it to the premiums. Many term plans offer a sum higher than this too. See, if that is what you need. If you are worried about the premiums, consider buying insurance at an early age. Insurance companies charge you the least when you are young.

3. Compare the features of different plans to pick a wholesome policy.

While comparing plans, make sure to browse through all their features. Some common ones include flexibility in payouts (one-time, monthly, etc.), flexibility in premium payments (monthly, quarterly, semi-annually, annually), the option to change the cover amount later, etc. It helps to pick a plan that is flexible because your needs are bound to change with time. Hence, having the option to make alterations to your policy as per your changing lifestyle can be of great advantage.

4. Check the claim settlement ratio (CSR) to select a dependable insurance provider.

The claim settlement ratio depicts the number of times an insurer settles claims in a year. So, if the CSR is 90%, the insurer settled 90 out of 100 claims in a year. The higher the number, the better it is, as this reduces the chances of your claim being rejected at a crucial time. A high CSR also shows the reliability and brand value of the insurance company in the market. Since a term insurance plan is a long term commitment, it may be advised to choose a plan from an insurance company that enjoys a good reputation in the insurance industry.

5. Look for deals, discounts, and other benefits to minimize costs.

Some insurance providers may offer a discount to couples or existing customers who have another policy with the same company. You may also get an additional seasonal reduction in the price at a given time. An online term life insurance comparison can help you find a good discount that considerably reduces your overall expenditure.

6. Compare riders and add the most appropriate ones to extend the plan’s coverage.

Another advantage of comparing plans is that you get to choose multiple riders that can enhance the coverage of your policy. When you compare term insurance policies, make sure to go through the riders, each one offers. Pick the ones that you think can benefit you, such as a critical illness rider, permanent disability rider, or an accidental death rider. Now compare the price of adding these riders. Riders usually come at a nominal cost, but can still affect the overall premium for a policy. Make sure you pick a plan that remains cost-effective irrespective of the riders you select.

7. Compare the tenure each insurer offers to ensure uninterrupted protection.

The right tenure for your policy will largely depend on your age. A long tenure can result in more premiums being paid. Hence, it may not be advisable for some people. At the same time, a shorter tenure may not be enough to keep your loved ones secure. When you compare plans, make sure to check the policy term that all insurers offer. This can be an important consideration in picking out your term plan.

Kotak term insurance Plans

While you compare different term insurance plans to find a suitable product, here are two plans from Kotak that can fit in all your needs. Here’s what each one has to offer:

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1. Kotak Term Plan

  • The Kotak Term Plan offers flexible premium payment options at a nominal cost to suit anyone’s budget.
  • The plan lets you convert to another plan offered by Kotak at a later stage in your term. This offers flexibility as your lifestyle changes over time. You cannot convert to another term plan but can pick any other product from Kotak.
  • The minimum age criterion is 18 years, and the maximum goes up to 65 years.
  • You can pick a policy term anywhere between 5 to 30 years.
  • The sum assured starts from ₹3,00,000 and goes up to ₹24,99,999. The minimum annual regular premium starts from only ₹2,000, and the minimum single (one-time) premiums start from ₹12,000.

2. Kotak e-Term Plan

  • The plan offers high protection, starting at only ₹23 per day.
  • The plan lets you choose from multiple payout options, such as Life Option, Life Secure Option, and Life Plus option.
  • The payouts are flexible too, and you can pick between Immediate, Level Recurring, and Increasing Recurring payout options.
  • The minimum age criterion is 18 years, and the maximum goes up to 65 years.
  • The minimum maturity age is 23 years, and the maximum maturity age is 75 years.
  • The minimum sum assured is ₹25,00,000, and the higher limit depends on your plan.

To sum it up

A term life insurance comparison can help you buy a policy that is perfect for your needs and those of your family. Not only does it result in cost-effective options but also lets you purchase a plan that has a wide variety of offerings with the support and backing of a trustworthy brand name. It eliminates all scope for doubt and ensures that you lead a stress-free life with peace of mind.

Therefore, before buying a term plan, make sure to compare various plans and find out what is best suited to your requirements. It only takes a few minutes and safeguards your loved ones for a long time to come.

- A Consumer Education Initiative series by Kotak Life

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