Below mentioned are the most Frequently Asked Questions on Term Insurance.
1) How much Sum Assured / cover should I take in a term plan?
The amount of Life Insurance coverage you need will depend on many factors such as:
- How many financial dependants you have?
- What kind of lifestyle you want to provide for your family?
- How much amount will you need for your children’s education?
2) What is the policy term I should select?
Term insurance is taken to cover the risk of loss of income. So ideally take term insurance for the longest period.
3) Will I have a problem at the time of claim if I buy online term insurance plan?
Every insurance company has a centralized customer service team which attends to all the customer query/complaints. The IRDAI regulations are the same for both online and offline customers and hence there is no differentiation between customers who have purchased online or offline.
4) Is it secure to buy a term insurance plans online?
Online transactions are completely secure and are done directly on the insurance company’s website. Today almost all financial transactions including banking, stocks, etc have moved completely online and lacs of people are making online payments every day.
5) What is the difference between term and endowment insurance plans?
They serve different purposes and cater to different needs. Term insurance is a pure risk cover and a product which is an absolute must for every individual who has any financial dependent relying on their income. An endowment plan is for savings purpose, it has nominal death benefit and provides maturity benefit as well.
6) Why is there a vast difference in premiums of various term insurance plans?
Insurance premium is an amount paid by the policyholder to the insurance company in return for the risk cover. Every insurance company assesses the risk differently and accordingly decides the premium. So if Company A assesses your risk to be low, they will offer you lower premiums.