Buying an Online Term Plan for Dummies

There is nothing more important than your family. For most people, family is a comfort zone that can’t be replaced, and their happiness and well-being is of utmost importance.

Protecting and providing for your family when you have a good income is easy. But what will happen if something unfortunate happens to you and you have to leave them behind?

If this question makes you anxious, a term life insurance is something you should consider buying.

What is term insurance?

Term life insurance is a life insurance policy for a set period of time. It is meant to protect and provide for your family, even in your absence.

In a term plan, a beneficiary, which is most often a family member, can claim the insurance amount if the insured passes away during the period of the insurance.

How to buy online term plan?

Buying an online term plan is easy these days. But if you are new to this and you are confused about where to begin, fret not. Let’s try and understand how you can figure out what’s the right plan for you and get insured in five easy steps.

Step 1 > Research

Research is the key. You should be well aware of how a term insurance works and all its nuances for you to get the maximum benefit out of a term plan.

Most insurance companies have online resources that you can rely on for your research. It’s a good idea to go through them and understand the basics first. By the end of your research, you should ideally understand what a term insurance is and how the processes of buying and claiming it will be.

If things get a little confusing for you, you can always take the help of advisory that are available in these websites.

Step 2 > Plan

Once you have a basic understanding of term insurance, it’s time you plan your policy.

There are two important things you should figure out at this stage.

  • Insured sum – This is your insurance coverage amount. That is, the amount your family can claim. A higher sum insured will attract a higher premium. The key is to have an ideal insured sum that will cover all your debts and even after that, gives the family adequate financial protection. The rule of thumb is that your insured sum should at 10 times your annual income. To calculate how much your premium will be, you can use a term plan premium calculator available online.
  • Tenure of your plan – The tenure of your plan should be chosen wisely. If you are young, you can make use of the low insurance premium price that you would be offered and opt for a longer tenure. If your term plan has a specific purpose, like protecting your family from debt, you can opt for a term plan with similar tenure as the loan, with a higher insured sum.

Step 3 > Keeping necessary details ready

Making sure you have all the necessary documents before you start the process will make things hassle-free. Documentation could be different for different insurers, but below are the commonly required documents-

  • ID proofs
  • Proof of age
  • Income proof
  • Medical reports
  • Photograph

Step 4 > Finding the insurer of your choice and registering

At this stage, you are ready with all the necessary documents. The next step is to find an insurer and policy that suits you. It’s recommended you analyse and compare multiple plans before choosing one so that you get the one that suits you the best. Once that is chosen, register in the insurer’s website and follow simple, straightforward instructions to get insured.

Step 5 > Double-checking the documentation

The process doesn’t end with buying the term plan. You should double-check the whole documentation sent to you by the insurer and correct any errors to make sure the process of claiming insurance is hassle-free, if there is ever a need.

A term life insurance is nothing short of a necessity for the protection of your family. It gives you peace of mind while you climb the ladders of your life. If you are not insured yet, don’t wait too long – go to an insurer’s website and get insured today!

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