Which Term Insurance Plan should you choose?

A Term Insurance plan is the best form of life insurance compared to endowment plans or ULIPs, as you can get a high cover for a low price. This is because the entire premium you pay goes towards covering the risk and there is no investment component. Buying sufficient term insurance cover is of utmost importance and should be done as a priority task while planning your finances.

How should you go about buying a term plan?

A term plan is the simplest and most straight forward form of insurance. However, insurance companies go through different parameters before deciding if you are eligible to purchase the policy or not. Assessing your medical fitness is one of the basic things done before the policy is given to you. Sometimes, a past medical condition, even if it is a decade old can be a cause for refusing the policy to you. Sometimes, you may be working in a country which is considered to be risky by the insurance company, and hence the policy may be refused. In such cases, you can seek the help of an insurance advisor or insurance brokers such as Medimanage or Policy Bazar to help you out.

The popularity of term plans has increased in the recent past, with online channels also gaining importance. Buying an online term plan is not only easy, but can also work out to be cheaper. If you purchase a term plan online, you need to fill in your details, make the premium payment and upload your documents. You will then be asked to do your medical tests. The policy will be issued subject to satisfactory documents and medical test results.

What are the documents needed to purchase a term cover?

Generally insurance companies require an ID proof, address proof, salary slip or IT returns, passport size photographs, cancelled cheque and cheque for the premium amount. The requirement for the documents changes on a case to case basis. If you purchase an Online Term Insurance Plans In India, you can also upload these documents online and make an online payment for the premium. 

Insurance Demat - Should you opt for this?

In 2013, IRDA introduced the concept of online insurance policies, where all your policies can be maintained in the demat form. An e-insurance account will need to be opened, and these details should be furnished when you buy a new policy. Insurance demat will not only save time and efforts, but is also a safer option to manage your policies. To know more about the insurance demat, please click here. It is recommended to opt for digitisation of insurance policies.