I still remember the time when I got my first salary in the account, I was elated with joy. That day, it seemed like I could buy everything I wanted as a college kid. Soon after this, I got married and thereafter started another chapter of my life —fatherhood which was beginning of a new era for me. I’m sure that many of you also would have been a part of this same journey. There’s a reason that I want you all to recall this life journey of yours — for only then will you understand the importance of term insurance.
The first time I picked up my new-born baby, I realised how the baby weighed almost nothing but the responsibility of is future weighed a great deal on my shoulders. A plethora of emotions arose inside of me — happiness, joy, ecstasy but most importantly — fear.
The fear of not being present during his crucial years, fear of not being able to handle the responsibilities due to various unforeseen circumstances. Needless to say, this realization dawns upon each and every bread earner of a family.
This is the time when we rise to the occasion and decide to tackle such situations with adequate and well-thought plans. So if you ask me, the best way to rid yourself of such tensions is by purchasing a term plan. A term plan helps your family maintain a healthy lifestyle and carry on with life even in your absence. Max Life Online Term Plan is one such plan which offers flexibility and value for money.
Looking at the premium amount of this term insurance plan, I’d say it’s quite affordable as compared to endowment plans since it does not involve the distribution cost.
There are several term plans available in the market – which is both a boon and a bane as getting the right policy that suits your and your beloved family members becomes a bit confusing. The basic parameters to select an online term plan are:
- It should adequately fit your future needs and requirements. Do not buy a plan that you don’t understand.
- It should have an easy and clear claim settlement process. Remember, everything rests on this as in the time of actual need – it will have to be completed by your family members and not you.
- It should offer you a balance of both advantage and true value-for-money.
- Policy issuance timelines should be fairly small. Check if the policy is being issued within 10-15 days
Another thing that you must check is the Claim Settlement Ratio of the insurer. This is defined as the ratio of claims paid to nominees by the insurance company and total claims received from the customers.
This data is issued by the IRDAI every year. The company you choose should have a very high Claim Settlement Ratio. Research and compare claims ratio as the first parameter of selection, the higher the better. It is never 100% as people tend to hide or conceal material facts like tobacco consumption or health situation. They do so to save premium costs and eventually, their claims are rejected. So remember to disclose all the right facts before taking up any type of insurance.
You should also analyse your insurance needs i.e. think about the kind of financial security you wish to give to your family. One way could be to insure them with a lump sum amount that will help them cover all the debts and at the same time save for a big life event – like higher education, marriage etc. Another option is to provide an additional monthly income over and above the lump sum amount. However according to me, the most feasible option is a monthly income increasing every year at 10%, to secure your family against inflation over and above the lump sum amount.
Max Life Online Term Plan covers all the three features in a well-structured manner. Also, Online Term Insurance brings an added advantage of one of the lowest cost or premium in the market. I am pasting an interesting screenshot here just to give a glimpse of the premium and the cover that you can get accordingly. These calculations are for a healthy, non-smoker 30-year-old male with a policy term of 30 years.
Max Life Online Term Plan helps your family attain future security and live a confident lifestyle. It prevents the family from the trauma of financial uncertainties and helps manage daily expenses. It also brings a great value with extremely low premium rates for reasonably large size life term cover. This lump sum also covers the liabilities like loans or marriages or admissions or any other big expense that may be lined up for their future.
Hence, it is really important to buy a Term Insurance Plan. At the same time, it is also very important to buy the right plan as per your requirements. Once invested, it can keep you and your family secured against any future uncertainties as you enjoy your life to the fullest.