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Buying Term Insurance Can Be Costlier Unless It Has These 5 Benefits

Online Term insurance plans are one of the most popular forms of life insurance in India due to their low premium rates and ease of purchase. These plans help protect the financial future of your loved ones in case of an eventuality, by offering them a large corpus after your unfortunate demise.

Which is why,getting term insurance should be the first crucial step that you take towards planning a sustainable financial future for your family.Plus, online term insurance plans are affordable. Hence, you can prepare for any contingency without upsetting your existing financial goals.

You can also enhance the efficacy of your term plan and minimise its cost by availing separate riders with the policy. While this may increase the insurance premium marginally, adding these riders proves to be vital, especially when you look to provide for the increasing financial needs of your loved ones in the coming future.

Overall, term insurance plays a crucial role in your financial planning. Further,there are some unique benefits and features that can help you reduce your plan’s purchase cost. Take a look.

What Benefits Help Reduce the Cost of Term Insurance?

There are various riders and plan benefits that help align a term insurance plan with your life goals and family’s lifestyle needs. While these riders offer additional protection and coverage (you have to a marginally higher premium for these benefits), they help reap extended benefits out of your term policy.

Here’s an insight into the different benefits offered under top-performing term plans from reputable insurers:

  1. Disability – Critical and Accidental

The rider supports your family’s dreams and financial futurein case you suffer a disability post-accident or during treatment of a critical health condition.

  1. Premium Waiver

This rider benefit helps sustain your term coverage, even if you are unable to pay the entire premium payable under the plan.

  1. Critical Illness Cover

With this rider, you receive comprehensive financial assistance to furbish treatment costs for somecritical health issues including cancer and heart conditions.

  1. Larger Tenure

While most online term insurance plans offer coverage till the age of 85, you must opt for the maximum policy tenure possible.

  1. Pay till Retirement

By paying the premium for a limited period, specifically till retirement, you can make sure that your term plan covers essential milestones in life.

How Do These Benefits Work?

Accidental Death Rider

This rider pays an additional sum of money to your nominee, over and above the sum assured, in case of your unfortunate demise during the policy term. The percentage of sum payable as rider benefit is calculated on the agreed sum assured under the plan.

Moreover, the rider benefit may vary from one policy to another. However, the additional premium payable for this rider remains fixed throughout the policy term.

Key Facts

  • The benefits are applicable only in case of accidental death
  • Low premium rates
  • Premium remains the same for the entire tenure

Permanent and Partial Disability Rider

If you meet with an accident and suffer partial or permanent disability because of it, this rider becomes active. By including this rider into your online term insurance plan, you receive a certain percentage of sum assured as regular income for a specific period after the accident. The received financial income helps provide for your family’s needs.

Key Facts

  • In case of Total disability, you receive up to the full sum assured
  • In case of Partial disability, the insurer pays a certain percentage of the sum assured
  • You may opt for the rider benefits in the form of a monthly income
  • This rider is usually combined with the Accidental Death Rider

Critical Illness Rider

With this rider, you receive a lump sum on being diagnosed with a critical illness, pre-specified under the policy. Some severe health conditions such as cancer, heart attack, paralysis, stroke, kidney failure, coronary artery bypass graft surgery and organ transplants are a part of the cover offered under this rider.

The sum received helps you opt for the best possible treatment for any such conditions without putting a hole in your pocket.

Key Facts

  • The lump sum benefit paid depends upon the stage in which the illness is diagnosed
  • You may receive up to the entire sum assured in case the diagnosis is done at a late stage
  • In case the disease is diagnosed at an early age, you would receive a certain percentage of the benefit
  • The sum received helps compensate for the loss of income

Waiver of Premium Rider

With this rider, if you are unable to pay future premiums payable due to an income loss or disability, the insurer waives off the future premiums while the policy remains active.

Key Facts

  • The rider waives off any future premium payments
  • The policy remains activeand continues to provide insurance cover
  • It decreases your financial worries of making future payments

Top Performing Online Term Insurance Plans in India

Max Life Insurance Online Term Plan Plus

It is a comprehensive term insurance policy that helps coveryour death, disability and diagnosis of critical illnesses. You can get insurance cover for up to 85 years of age, while the premium payment age under the plan is 60 years. In addition, you also receive tax benefits under Section 80C and Section 10(10D) on the premium paid and death benefit respectively.

Currently, Max Life insurance features a claim settlement ratio of 98.26%, which is the highest among the leading insurers in India. Further, you have the option to choose between three plan variants, namely

  • basic life cover
  • basic life cover + monthly income
  • basic life cover + increasing monthly income

HDFC Click 2 Protect Plus

This online term insurance plan offered by HDFC bank provides insurance cover for your family members, in case of your untimely death, accidental disability or diagnosis of a critical health condition.

Further, you can opt for a maximum policy tenure of up to 50 years and choose between 9 different options, namely –

  • Life Option
  • Extra Life Option
  • 3D Life Option
  • Life Long Protection Option
  • 3D Life-Long Protection Option
  • Return of Premium Option
  • Extra Life Income Option
  • Income Option
  • Income Replacement Option

ICICI Prudential iProtect Smart

Offered by ICICI Bank, this online term insurance plan offers to claim payment on diagnosis of up to 34 critical illnesses. Moreover, the plans currently feature a claim settlement ratio of 97.88%, while offering coverage up to 99 years of age.

The Role of Claim Settlement Ratio (CSR)

Claims Settlement Ratio, also known as the Claim Paid Percentage, is the ultimate proof of an insurer’s commitment to pay outstanding claims.

The CSRdepicts the number of claims paid out by an insurance company in a given financial year against the total outstanding claims they’ve received and reported in that year. Therefore, higher claims paid a percentage, is the testament to the insurer’s efficiency in managing the claims of their customer.

Avail Term Insurance Benefits for Life

Why compromise with your family’s financial future, when you can easily protect their dreams and needs with an online term plan? Moreover, these term plans allow you to enhance the coverage under the policy by opting for additional rider benefits and a variety of other options. With a term plan, thus, you should give your loved ones an opportunity to be financially independent, even in your absence.

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