Things to remember before you buy Term Insurance

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Things to remember before you buy Term Insurance
BimaKaro.in
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online term insurance plan.

• Term insurance is a type of a life insurance
  policy that promises to pay a pre-decided amount
  as financial protection for your family. In case
  any unfortunate event happens to you within the
  policy term. Let us understand this with an
  example Vimal had purchased a term insurance
  plan for a sum assured of Rs. 1 crore. He is
  married and has two kids. While the policy is in
  force till his age of 60 years, in case something
  untoward such as death, terminal illness or
  disability happens to Vimal, within this period,
  the insurance provider will pay Vimals family a
  sum of Rs.1 crore.
• Unlike investment products, when you buy term
  insurance, you are purchasing a pure protection
  plan. Though it does not offer any returns on the
  premiums paid, you can be assured of securing
  your familys financial future after your demise
  at the end of the policy tenure.
• If you are looking to buy term insurance, do
  remember that there are a wide range of policies
  available in the market, issued by different
  insurance companies. With plans available across
  online and offline modes, choosing the right
  policy from a massive list of options is
  undoubtedly a difficult task.

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select the right policy
1) Assess your requirements Before you buy term
insurance, be clear on the purpose of why you buy
term insurance. To do this, you need to assess
your current situation and think what your family
will require in future to sustain the same
lifestyle while pursuing their duties typically.
By doing an assessment and by answering these
simple questions The total amount needed per
month to run the family How many earning members
are in the family, or are there any other source
of income? Number of members dependent on you Are
there any liabilities and unpaid loans? Once you
have the above details, it is the first step in
deciding the right term insurance suiting your
needs. It will also be helpful if you consult
your spouse and kids to understand their life
goals and ambitions that would help you, even
more, align with your purchase decision.  
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Best Term Plan
2) What are your monthly expenses? Once you
decide to buy term insurance, you need to find
the right amount called a premium that is
calculated based on the sum assured, policy term,
additional features taken etc. It should be paid
continuously every year throughout the policy
term. Therefore, make sure to opt for a coverage
that not only covers your family but also fits
your pocket. Going for a high premium and
availing a term plan for a low sum assured are
both not going to serve any purpose of buying a
term insurance policy. Be always realistic in
your expectations and stay within your means to
avoid disappointments in future. 3) Understand
the features Never buy term insurance blindly
that was referred by your friend or relatives.
Since there is no possibility of modifying
details in the insurance policy and insurance
providers do not allow it after it is issued make
sure to choose the right options at the inception
of the policy to avoid complications in the
future by double checking all the features
provided. Read through all the details, terms and
conditions, rules, inclusions and exclusions
etc., mentioned in the policy documents and then
finally sign on the dotted line, only after
getting yourself clarified on all the possible
doubts.
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Online term Insurance Plan
4) Rider Protection After you decide to buy a
term insurance plan, it is necessary to add as
much protection as possible. You can do this to
the base policy with the addition of riders at a
very affordable cost. Riders are nothing but
add-on covers that you may add to the online term
insurance plan to extend the policys coverage
with more features. Although these add-ons come
at an extra cost, they are in fact worth it, if
they satisfy your requirements. Some commonly
preferred riders are Accidental Death Cover,
Accidental Disability Cover, Premium Waiver
Cover, Critical Illness Cover, Terminal Illness
Cover etc. 5) Income Tax Benefits The premiums
that you pay for term insurance policies are
eligible for tax deductions and exemptions under
section 80C and 10(10D) of the Income Tax Act,
1961. This is a significant benefit, especially
if you wish to save on your tax outgo every year
at the time of income tax filing. The
significant advantage of having such exemptions
is experienced during the time of benefit payout.
Your family doesnt have to pay tax on the
benefit amount, since they fall under the exempt
list.
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Buy Term Insurance
6) Claim settlement ratio This is a parameter
that most dont pay attention to when deciding
to buy term insurance, but this ratio gives an
overview of the insurance companys service
record. The Claim Settlement Ratio is the total
percentage of claims settled by the insurer
against the policyholders claim requests during
the financial year. While a low CSR means the
insurance provider has not maintained a good
record of settling the claims, a high settlement
ratio implies the record is quite good. Experts
recommend buying a term insurance policy from a
provider who possesses a high CSR. Now having
understood on how to select the best term
insurance plan, it is time for you to buy from an
online companion website, like Bimakaro.in.
Internet penetration and digital adoption have
made it easy to buy term insurance through online
mode since the process is highly transparent and
offers comfort options sitting in the home,
allowing you to compare various insurance
providers and their plans.
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Bimakaro
Bimakaro.in offers a simplified platform to
select insurance policies based on your life
stage (single, married, with kids etc). They also
have facilities to compare the pricing, features
and benefits of different plans in a single
screen, thereby enabling you to make an informed
buying decision.