Term life insurance has gained popularity in recent years. Today many insurance companies offer an online term plan. Compare these plans and you will find they have many similarities. Yet where they differ is what makes all the difference.
Here are ten features of the best term life insurance plans:
Flexible payout options:
The best term plans will offer flexible payout options. Look for plans that provide both a lump sum payout as well as a monthly payout. You should even have the option of getting a combination of the two.
Insurers should offer a regular monthly income payout and a growing income payout that factor in inflation. With these options, your loved ones will get a regular income that will replenish their finances every month.
Your term life insurance policy should have the option of a premium waiver in the event of an accidental disability. All the future premiums should be waived off and the sum assured should be paid, while coverage continues.
When looking for an online term plan, compare the riders available. Comprehensive coverage should be available in the form of additional riders such as
- Critical illness rider
- Accidental death benefit rider
- Accidental disability benefit rider
- Terminal illness rider
Increasing or decreasing coverage:
You should get the option to increase or decrease coverage as per your requirements. With the increasing life cover, coverage increases by 5% annually up to 100% of the sum assured. With the decreasing life cover, it decreases annually by 5% after the age of 60 until the sum assured is 50% of the original amount.
Cover for non-working spouse:
Your term insurance plan should allow you to add your non-working spouse to it at a discount. This saves you money as you now do not have to buy separate life insurance coverage for your spouse.
Claim settlement ratio:
Life insurance bought will be for naught if the insurer does not honor the claims made. Before buying an online term plan, compare various insurer’s terms and conditions and their claim settlement ratios at online insurance brokers portal.
Claim settlement process:
When making a claim, your loved ones should not have to go through an ordeal. The claim settlement process should be hassle-free and easy. Choose an insurer that has a simple claims settlement process.
Flexibility in premium payment:
Your term insurance plan should allow you to pay premiums monthly, quarterly, semi-annually, or annually. With such flexibility, you can choose the payment option that suits your convenience and budget plan.
The best term insurance plans will offer you not just the Death benefit but also a return of premium option in case you survive the policy period. This option called the Maturity value will be equal to all the premiums you have paid.
The devil lies in the details when it comes to insurance. So be sure to check online for the above features. Then choose a policy that ticks off all the boxes to get the best online term plan.