Unimaginable situations can take place at any given hour. Such circumstances may cause havoc in your as well as your loved ones’ life. We hope not, but say something serious happens to you?
Whether be it a critical illness or an accident, all your plans for the near future may get disrupted, and your loved ones may face financial duress Thus it is always better to stay prepared for such unforeseen situations. This is where an online term insurance plays a significant role in protecting you and your loved ones, financially.
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A term insurance plan will help you cross that hurdle and help you financially in a time of need. Nowadays, you can opt for online term insurance plans that are easy and convenient. With just a click, you can secure your family’s financial future in case you are not around. You can never know what lies ahead for sure, and hence an online term plan is a necessity.
So, if you plan to purchase an online term plan, you should consider these features before:
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1. Regular Income Payout
When buying an online term insurance plan, it would be beneficial to check whether the plan has a regular income payout option or not. This option ensures a consistent flow of income to your loved ones when you are no longer around. Plus, it will help you meet the monthly expenditure and fill the gap created due to the absence of your salary.
Most online term plans offer an option to choose from the lump-sum payout, monthly income payout and sometimes even a combination of both. It means that your beneficiaries can get the amount in equal monthly instalments or all at once.
2. Rider Options
The add-on benefits enhance the policy sum insured by giving extra coverage to you. Although they come with an additional cost, the riders available within an online term insurance plan are beneficial for various reasons. Some rider options include the waiver of premium rider, critical illness rider and accidental death benefit rider.
The waiver of the premium, rider with an online term plan will waive your obligation to pay any further premiums if you become critically ill or disabled. A critical illness rider will enable you to get a lump-sum amount if diagnosed with a critical illness. And the accidental death benefit rider will enable your beneficiaries to get an increased payout in the occurrence of your demise due to an accident.
3. Tax Benefits
If you go on to the internet space to buy an online term insurance plan, then you will realize that term insurance enables you to get some tax deductions. The premium that you will pay for a term insurance plan offers tax benefits, and the payouts also come with tax exemptions according to the existing laws.
As regulated by Section 80 C of the Income Tax Act, the paid premium is excused to a limit of Rs 1.5 lakh annually. Also, you can get maximum term insurance tax benefits under this section by buying the plan for the maximum coverage offered.
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4. High Sum Assured
When you are researching, you will find that an online term plan is a simple form of life insurance. And one of its benefits is its affordable cost. Term insurance plans are available at a premium that you can easily afford compared to other plans. Plus, keep in mind that the earlier you buy term insurance, the lower will be the premium.
Moreover, if you opt for an online term insurance plan, the premium may be lower than buying offline. To put it simply, the cost-saving that happens at the insurer’s end will be transferred to your plan as one of the benefits of term insurance plan. The best part about online term plans is that you can check the benefits online with a single click.
5. Increase/ Decrease Cover as per Convenience
Generally, insurance companies allow you to increase or decrease the insurance cover at different stages in life. You can purchase an online term insurance plan when you are young. Do not worry about the increasing responsibilities in the future as these plans offer the flexibility to increase or decrease the cover as per requirements.
In this manner, you can revisit your online term plan time and again and factor in inflation at the time of increasing the cover. It will be smart and strategic financial planning from your end.
While these are some features that you should look for before you opt for an online term insurance plan, there are more that you can research online. Doing so will help you compare the plethora of options that are available and make the right choice. Plus, many insurance providers offer insurance premium calculators on their websites that will ease your buying process.
Otherwise, you can opt for the extremely comprehensive max life online term plans. You can check Max Life Insurance’s website and read the policy wordings in detail. Plus, their team of experts is well-resourced to solve any doubts that you may have!
