How to Compare Benefits of Term Insurance

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You can buy more than one term plans also in cases you have not bought plans to your full eligibility. For example if according to your income and age bracket you are eligible to a life cover of INR 1 crore and you have taken a policy of INR 40 lacs you can take further plans till you are fully covered for INR 1 crore. The sum assured on an existing plan cannot be increased. When your income rises your eligibility also rises, in such event you can buy another plan to get a higher cover and have multiple term plans or surrender the existing plan and buy a new plan with a higher cover. One important tip is that you buy term plans after comparing the options available in the market. Term plans are compared primarily on four bases. These are discussed below. Premium One of the obvious parameter to compare any insurance plan is premium. Especially in case of term plans the premium paid is of high importance as it is generally a very long term plan and you wouldn't want to pay higher premium for such long period than you could avail had you done effective comparison. Another reason why premium comparison is important in your term plan is that in these plans the premium does not get accumulated and paid at maturity. Absence of maturity benefit makes premium comparison very important. Plan Term It is the duration of the life cover. The insurance company is liable to pay only when death of the insured occurs during this period. It is favorable for you to have a longer life cover to remain protected in the senior years of your life in which fatality ratio is high. Go for companies offering a higher plan term. Claim Settlement Ratio While comparing the term plans of various companies it is very important to compare the claim settlement ratios of the insurers. Claim settlement ratio is the ratio of number of claims sanctioned out of the total number of claims received by the insurance company in a year. Higher claim settlement ratio of the company is indicative of increased probability of your claim getting passed. Companies with better claim settlement ratio often enjoy good reputation and popularity among the customers. Extra Benefits or Riders Few Insurance companies offer a range of added benefits by charging a little extra on a regular term plan. These benefits are called riders. Popular riders available in India are: Critical Illness Rider: Under this rider the insurance company pays a lump sum amount to the policyholder if and when he is diagnosed with serious disease listed as critical disease. The money received from the insurance company can be very useful to take required treatment.
Accidental Rider: Under this rider the insurance company pays up to twice the sum assured to the nominees in cases where the insured dies because of an accident. An accident can be any violent incident of physical nature caused by an impact from an external and visible object. Disability Rider: Under this rider the insurance company pays a portion of the sum assured to the policyholder in case he encounters a disability in his body to enable him to sustain his needs as in case of disability earning capacity can be compromised. There are many other such riders available in the market. You can sit with your agent or on the internet to explore what all riders you need and which companies are offering those. Based on such analysis you can short list those companies and compare. Study and scrutinize a large number of plans to make a smart purchase. Missing out on a lucrative plan and settle for a mediocre one is not what you want. It is recommended to use services of various online insurance comparison portals to get an unbiased plan comparison and that too free of cost. How to Compare Benefits of Term Insurance http://www.sooperarticles.com/finance-articles/insurancearticles/how-compare-benefits-term-insurance-1510715.html#ixzz4YZawnHGs
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How to Compare Benefits of Term Insurance

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