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Term Insurance Plans

Things You Must Know About Term Insurance Plans

We all strive hard to give the best to our family members without any hassles. But what if you being the breadwinner of the family suffer an untimely death? Will you still be able to fulfill your family’s needs and aspirations in your absence? Though it may sound unrealistic, you can certainly make arrangements for your family’s well-being post your demise. Losing someone you love and care can be painful and bitter. But to make things less bitter, you can buy a term insurance plan that would offer your family a financial help in their tough times.

Term Insurance Premium Calculator

A term insurance premium calculator is a tool that helps you find out the amount of your premium that you agree to pay for your chosen sum assured under a term insurance plan. You simply choose a term plan depending on the quotes and pay the premiums. But, do you know, how to use the term insurance premium calculator?

The below mentioned factors are used to calculate your term insurance premium:

  • Age of the insured: Age is the most important deciding factor to derive your term insurance premium. At a younger age, you are less likely to fall prey to lifestyle diseases or death. Insurance company would thereby save money in the near future since the possibilities of making a claim are less.

  • Personal habits: If you are addicted to alcohol, drugs or smoking habits, your insurance company will charge you a bomb for your premium. At times, there are changes of a policy denial too. People who aren’t addicted to these habits pay almost 30 to 70% premium lower than the ones addicted to it.

  • Health record: You will enjoy a lower premium if you have not had a family history of cancer, Alzheimer’s etc. This survey is done so that your chances of falling prey to these diseases automatically reduces.

  • Tenure of the insurance policy: The term insurance premium calculator will be affected adversely if you buy a term plan that covers your retirement age as well as till you pay off all your liabilities.

  • Coverage/sum assured: It is advisable to opt for a coverage as per your requirement. The higher the sum assured, higher would be the insurance premium.

Benefits of a Term Insurance Calculator

The way you do a proper R&D before buying anything online, it does make absolute sense to run through a same research before buying a term insurance online. Here are the benefits of using a term insurance calculator:

  • The term insurance calculator will help you know the exact premium for your chosen coverage amount to safeguard your family in case of your untimely death

  • Your term insurance online shopping becomes a simple and convenient process

  • You become a well-informed customer about the market know-hows

  • You get to see plans of different insurers under one roof

  • You get to compare features and rates of different term insurance plans for the best deals ever!

  • Online term insurance is cheaper and simple to understand

How to Use a Term Insurance Calculator

  • The term insurance calculator will ask you to enter your personal details like your name, gender, date of birth, mobile number, marital status, annual income, smoking and chewing tobacco habits, your preferred cover amount and the age/period till which your policy should cover you etc.

  • Once you enter these details the term insurance calculator will give you a plethora of term insurance plans offered by different insurers. Select the buy now button on the one you feel would give you the right coverage at the right price .

  • The term insurance calculator will ask you to feed in the details of your address, nominee and finally take you to the payment gateway option

  • You can now make the term insurance payment online using your debit card, credit card or your net-banking facility .

How to Choose the Best Term Insurance Plan

Term plan is a pure death benefit policy that offers financial security to your loved ones. Before you purchase a term plan, it is important to know what factors affect the premium. And also, it is equally important to know how to find the right type of term insurance plan. Because, you don’t want your family to struggle either financially or while figuring out how things work without you.

You want to provide them the best possible way out there to sustain financially when you won’t be there. Plus, it should come at an affordable price.

But is it possible? Yes, it is. So, let’s see, how to short list from the numerous options available.

The best way to choose the best term insurance plan is, to compare various term plans.

Simply, use Coverfox's term insurance premium calculator to get various insurer’s quotes and compare plans on different parameters.

Compare Term Insurance Plans to Buy the Best Term Plan:

It is crucial to compare term insurance plans, as all life insurance companies in the market offer different term life insurance plans. Moreover, each life insurance company offers a number of variants of term plans. And analyzing the right plan for oneself could be a task.

But don't worry. Our tool has transformed such a daunting task into a cake walk.

Online term insurance comparison tool removes all the guess work. Not only that, but it also guarantees you the best term insurance plan at an affordable premium!

Let's have a look at the factors you should watch out for while comparing term insurance plans:

  • Premiums Against Size of Life Cover: Everyone wants to be covered sufficiently. Compare the premiums for the size of the life cover offered by the insurance company. This should be ideally large enough to cover all your debts as well as aid your loved ones to lead a comfortable lifestyle post your demise. Nevertheless, the premium too should be pocket-friendly for the cover you opt for!

  • Features of the Term Plan: Always dig deep into the features and benefits offered by the insurance companies while you compare term insurance online. Watch out if the policy you wish to opt for offers flexibility to choose the tenure of your choice, the sum assured amount, inbuilt features like terminal/critical illnesses, accidental death benefit and the premium payment modes.

  • Additional Rider Benefits: Riders are add-ons that enhance your basic term plan insurance. You can buy term insurance riders at an additional cost. Before buying a term insurance plan online, ensure to compare the riders offered by different insurers. Some of the important riders you may wish to add to your policy are critical illness rider, accidental death benefit cover etc. However, it is recommended to buy one only as per your requirement.

  • Claim Settlement Ratio: Claim settlement ratio of the company replicates the proportion of the total claims settled against the total claims raised. Higher the claim settlement ratio, higher are the chances of your claim getting fulfilled by your term insurance company. It is very important to keep a keen watch on the claim settlement ratio to ensure that your claim gets settled when the need arises. Therefore, keep this important factor in mind while comparing term insurance plans.

  • Term Insurance Company's Reliability: Before buying term insurance policy, ensure that the insurance company you wish to opt for is reliable and stable enough to develop trust among their customers. Basis the company’s reputation and the financial goodwill, you will get a clear picture of its business and the bankruptcy status. Therefore, before you buy term plan insurance online, do not forget to compare the term plan basis the insurance company’s stability.

Why should You Buy Term Insurance Plans Online?

Right from clothes to shoes to house-hold items we love to shop online. We like this way of shopping because we get so many choices to pick and choose from. Then why shouldn’t this be applicable to buy term insurance online too? We love exploring all the possible options. Coverfox.com offers you a plethora of term insurance plans under one roof with benefits like unbiased advice and after sales-services! Let’s have a look at the reasons to buy term insurance online:

  • Pocket-friendly: Experts say online term insurance plans are almost 40% cheaper than the offline plans. Now, who doesn’t want to save their hard-earned money? You skip all the intermediary charges like paper-cost, agent’s commission, processing fees etc. The insurance company therefore passes on their benefits to their customers.

  • User-friendly: Don’t worry if you are a newbie to the internet. Coverfox.com has a user-friendly gateway to take you through the process of buying term insurance conveniently. Comparing term insurance with different insurers would help you make a right choice.

  • Expert-knowledge: Any broker is licensed with the Insurance Governing Authority (IRDAI). They offer you the finest approach for all your needs related to insurance. Essential and top-notch services make them more reliable.

  • Back-up of your policy documents: In case you buy a term insurance plan with Coverfox.com, you can login and view your purchased term insurance policy on your online account. Besides, you also receive a soft-copy on your email address that gets saved too!

  • Reminders for renewal: Coverfox.com sends you timely renewal reminders to help you avoid from lapsing your policy.

List of Best Online Term Insurance Plans in India

Edelweiss Tokio Life Totalsecure Plus Term Plan

The term plan offers low-cost comprehensive coverage with 35 critical illness cover and a long-term life cover till 80 years of age. The plan offers flexibility in designing your coverage as per needs and has optional additional riders for enhanced protection.

Aviva i life Total Term Plan

The term plan gives you 4 plan options to choose your cover which suits the requirement of you and your family. The plan is packed with great features like inbuilt terminal illness benefit, accidental death benefit, maturity benefit, monthly income and many more.

Canara HSBC OBC iselect term plan

A pure protection plan that provides life insurance and terminal illness cover along with cover against accidental death/ disability, and the option to secure an income for your family even in your absence. It has 4 benefit payout options viz. Lump Sum, Lump Sum + Monthly Income, Monthly Income for a fixed term, Monthly Income till the end of your policy term.

PNB Metlife Mera Term Plan

This term plan can be customisable as per individual requirement which gives you the flexibility to choose from four pay-out options and also offers coverage for your spouse in the same policy. The plan has been designed to suit individual needs and offers enhanced protection for your family.

Aegon life iterm plan

This is an online term plan offering comprehensive insurance benefit for you and your family. The key features of the plan include low cost coverage, flexibility to increase life cover, pay-out on the diagnosis of terminal illness, additional covers for enhanced protection and many more.

Term Insurance Claim Process

In case of any uncertainties or unforeseen circumstances, the dependents as allocated by the policyholder during the policy commencement are required to file a claim. This process is simple as compared to other insurances.

Below is the claim process explained in brief:

  • Registering the claim with the insurer: The dependents of the policyholder need to intimate the insurance company about the claim. They can either visit the insurance company or contact as declared in the insurance policy document.

  • Submission of policy documents: Documents such as death certificate, original term insurance policy, proof of claim, history of medical documents etc. as per the insurance company's requirement. The insurance company may ask for additional documents too, if need be.

  • Final decision: On successful submission of the documents and verification by the insurance company, the claim will either be selected or rejected.

Term FAQs

FAQs on Term Insurance

What is the right age to buy a Term plan?

  • There really is no right age for making an investment when it comes to Term Insurance. Like any other insurance plan, the earlier you opt for it, the better. If you do manage to buy the plan at an early age:
  • The premiums will be relatively lower. Now that's a win-win situation!
  • Your liabilities are at a low, hence you might not require to insure a big sum, which will eventually result in lesser premiums.
  • As health risks largely depend on the age, getting covered is easier and hassle-free. Who doesn't like that?

What are the things you need to know when you are investing in a Term Insurance plan?

  • You take a term insurance plan with the sole purpose of ensuring that your family members are adequately supported in case of your death. In such a sensitive case, you must always weigh your options on all possible parameters:
  • Coverage: Be sure that the coverage being offered will be sufficient for your family or the nominated person. Never ever compromise on it for the sake of a lower premium.
  • Claim Settlement Ratio: The insurer's claim settlement ratio and market reputation will ensure that your claims are honored when needed, so always keep that in mind.
  • Inflation: Keeping inflation in mind, always consider how sufficient the coverage amount will be in the future.
  • Add-on feature: Always supplement your term insurance plan with suitable riders for the most comprehensive coverage.

In an unfortunate event of your death, how can your nominee claim your Term plan?

  • If you have invested in a Term Plan, it is advisable to keep your nominee aware of the situation so that if and when the time comes, he/she can claim the policy for which you have been shelling premium every year. To make the claim, the following steps need to be taken:
  • Every insurance company has a pre-set procedure defined for making a claim. Hence, following your death (and yeah, even though it sounds scary!), your nominee has to intimate the insurance company of the same.
  • All necessary documents including Claim Form, Death Certificate, original policy documents, hospital and medical records and bank account details of the nominee, etc. are to be submitted to the insurance company for further processing.
  • Always prefer to communicate with the insurance company through written medium like an email to maintain a track of your conversation. You never know when it might come in handy (though we hope it doesn't).

What is term insurance with maturity benefit?

Ideally, a term insurance plan with maturity benefit is different from a pure term plan. In a pure term insurance plan, if a policy holder survives the term, then he/she or even the nominee is not eligible to receive any benefit. However, a TROP (Term Return of Premium) plan does offer maturity benefits which are equal to a sum of premiums paid by the policyholder if he/she survives till the end of the term.

Do term insurance plans offer surrender value?

Term insurance plans are considered to be the ideal and the best move for securing your family’s future. While many of them prefer buying a term plan just because of the convincing power of the friend or the friend's friend who’s an insurance agent. However, at times, they end up buying a wrong plan not apt as per their requirement. This is when these people start wondering if the plan can be surrendered. In short, they wonder if they get any amount back in case they stop paying the premiums and plan of discontinuing the term insurance plan.

But, what exactly is surrender value?

Surrender value is nothing but the amount that the insured receives if he plans on discontinuing the term insurance plan before the end of the policy tem. The insurer then calculates the amount to be the paid to the insured from the start of the policy period till the termination date of the policy. Certain charges too will be deducted by the insurer from the surrender value.

Does term plan offer surrender value?

Well, not all term insurance plans offer surrender value. This is majorly applicable in case you opt for a term plan with the return of premium option (TROP). In some cases of pure term plan, if you decide to pay all the premiums under one single pay premium or limited premium payment option, you will be eligible for a surrender value.

This means, any term insurance plan with a regular annual premium payment option doesn't offer the surrender value benefit.

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