Posted by Policyboss.com


Issues related to buying online term insurance can be resolved easily if person knows his actual requirements and how to address them with correct products. There are 24 life insurance available in the market and provide more than thousand plans across segments such as endowment, term life, child plan, money back, ULIP and annuities and so on.

These policies are available with a wide range of riders and other options. As a customer, if you really want to make sense out of all your requirements, then you must know three things which are mentioned below:

  • Your needs
  • Coverage period
  • Process of buying

Instead of focusing on their sales speech, know your two fundamental risks in life.

  • Early demise
  • Living too long

If you die at young age, you leave your family without sufficient financial support. On the other hand, second scenario leaves you with inadequate financial support in your old age. It is advisable to consider the impacts of these two risks.

If your family is dependent on your income, then you have to make sure that your loved ones continue to enjoy the same standard of living in case your income is no longer available to them. In this scenario, buying online term insurance plan is a smart move as this policy pays the beneficiary an insurance amount equal to the sum insured in the event of policyholder’s demise.

Generally, customers require that fund to be equal to their salaries. Usually, it has been observed that people insure themselves up to the age of anticipated retirement. Buyers can purchase life insurance online or from an agent.

The product cost is fixed, so just do online comparison to get the best deal. Mention all information correctly in the application form to avoid claim rejection.

In India, life expectancy is below 70 years of age and majority of people have sufficient retirement savings which will be enough for few years post-retirement. But, what if you live more than that age? Today, employers are not offering guaranteed lifelong pension and hence, will depend on their children for financial support. To avoid such situation, start thinking about how to handle these risks.

Annuity is a completely different concept and to buy it, customers have to pay lump sum money. In return, insurance companies in India pay a guaranteed monthly income to policyholder until your partner is alive. But, do not invest your complete retirement savings into annuities.