Term Insurance is an umbrella which provides you shelter on a rainy day. However, the market today is flooded with different types of term insurance plans and different insurers too. Therefore, it becomes difficult to understand which type of insurance to buy or which insurer to rely upon. However, today due to the technological advancement, buying stuff online right from provisions to clothes and shoes has become a cake walk. Insurance doesn’t step back either in this crazy world. You can compare term insurance quotes online offered by different insurers to get a real steal deal.
Read on to find out more about what term insurance is and how to compare its quotes online.
What is term insurance?
Term Insurance is a life insurance plan which provides financial coverage to the beneficiary of the insured person for a given period of time.
In the event of the death of the policyholder, the beneficiary can claim death benefits from the insurance company. One can choose if they want to receive a lump-sum amount or a combination of lump-sum plus monthly premiums, as per their requirements.
Term insurance helps provide a strong financial stability to the family once the insured is no more, which is extremely important in today’s day and age.
How to choose the best term plan?
Before an individual purchases a term plan, it is crucial to know what factors affect the premium, and choosing the right kind of plan which covers the family financially, to avoid any future problems caused to them. Also, the plan needs to be an affordable one which a person earning a decent income can think of buying for one’s loved ones.
The best way to choose the best term insurance plan is to compare the various plans, or rather quotes, on different parameters.
Comparison of various insurance quotes
It isboth advisable and necessary to compare from numerous term insurance plans and find the one plan which looks tailor-made to suit all of one’s requirements. Moreover, there are also several variants of term plans as no two plans can be the same. Hunting the right plan for oneself could be a task.
Online insurance brokers like Coverfox.com will give you a detailed insight of comparing term insurance quotes of different insurers under one roof. This basic comparison tool helps remove all obscurities from the procedure and queries that one might have. Not only that, it guarantees you the best term insurance plan at an affordable premium rate.
Let’s skim through the factors one must watch out for while comparing term insurance plans:
- Reliability of the insurance company: It is very important that the said organisation be stable and with a good reputation for customers to place their faith in This is because, you definitely wouldn’t like your nominee or your family members to run from pillar to post to settle your death claim, once you aren’t around.
- Expenditure: The whole ballgame of term plans rely on the total expenditure incurred. A customer must aim to buy the most affordable plan that provides a good cover as well.
- Convenience: By and large most online plans come with a minimum discount range, where the premium rates have been decreased significantly. Compare the premium rates but do not solely rely on a plan that offers a low premium. Keep other factors in mind too.
- Enhanced cover: One option provided by insurers for online term plans is to enhance their life cover at the critical situations of the life of the policyholder. Compare this feature with different insurers.
- Claim settlement ratio: The proportion exclaims the number of settlement per 100 claims. Hence there is a claims settlement ratio of 100%, which by the way is extremely uncommon, shows that organisation has settled all their claims. Compare the claim settlement ratio of different insurers.
- Solvency ratio: It may be defined as one of the various ratios which helps measure the ability of the company to meet its long term debts. The steadiness and financial consistency of the company is measured by its solvency ratio.
- Additional riders: These are add- ons to enhance basic term insurance plan. One can compare the various riders offered by various companies before opting for an insurance plan. Critical illness and death benefit covers are one to watch out for.
Compare the various term insurance quotes offered by different insurers to get the best deal, based on riders, additional features and benefits with the help of term premium calculator. Measure the quotes on your defined parameters and you’re all set!