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Need of comparing term life insurance quotes

A term life insurance plan is important. That is why all life insurance companies offer a term plan. With more than 25 life insurance companies operating in the Indian marketand each offering one or more types of term insurance plans, you are spoilt with varied choices. However, when buying a term insurance plan, do you compare between the different plans available?

There are several entities from whom you can purchase a term insurance plan. Moreover, there are several modes to buy a plan. However, buying a plan online helps you to compare not only the premium but also the benefits offered by the plan. But, is comparing term life insurance plans important?

Yes, it is and here are the reasons why:

  • You can get the best deal on your insurance plan

When you compare term life insurance quotes online, you can select the plan which offers you the cheapest rate of premium vis-à-vis the coverage. Without comparison, you might end up buying a plan which might not give you the best deal. When you compare, you can see the different premium rates available and the coverage features. This then helps you in shortlisting the right product. Thus, you get the maximum coverage at the lowest premium.

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  • You can select a comprehensive insurance plan

There are many plans which have inbuilt riders. For instance, the Accidental Death and Disability Benefit Rider comes inbuilt in many term plans. The rider pays an additional Sum Assured on accidental death or disability. Similarly, many term plans have Terminal Illness Rider inbuilt in their coverage. This rider pays an additional Sum Assured in lump sum if you are diagnosed with any of the covered terminal illness. Many plans have one or more of such riders inbuilt in their scope of coverage. These riders, thus, make the plan comprehensive. Finding this comprehensive coverage is possible only when you compare between the available plans and look for their coverage features.

  • You can ascertain the claim settlement credibility of the company

The Claim Settlement Ratio (CSR) of an insurance company depicts the number of claims the company has settled against the total claims raised in a year. A higher ratio is better for you as it increases the probability of your claim being settled by the company. When you compare term insurance quotes online, you can also compare the CSR of the company offering the plans. This comparison would let you buy a policy, which not only has the best coverage at the lowest rate, but it also belongs to a company with the highest CSR. Some popular companies’ CSR is mentioned below:

Insurer CSR for 2015-16 CSR for 2014-15
HDFC Life Insurance Company Ltd. 95.02% 90.50%
ICICI Prudential Life Insurance Company Ltd. 96.20% 93.80%
AegonReligare Life Insurance Company Ltd. 95.31% 89.78%
  • You can get lower premium rates

Different term life insurance plans have different premium rates based on the pricing policy of the company. When you compare term life insurance quotes online you can get lower premium rates for your plan.

  • You can buy what you want and not what are being sold

Miss-selling, under-selling and over-selling are very common features found in offline sales where comparison might not be available. As such, you are sold the plan which your agent or offline broker might force you to. When you compare and buy a plan, you can choose a plan as per your requirement. You can choose the sum assured, tenure and also the additional riders which you would like in your policy. Thus, comparing lets you buy a plan of your choice from the list of available plans.

Comparing term life insurance quotes is, thus, very essential before you finalize to buy one. To compare you should go online and compare the quotes through online brokers or online web aggregators. Though both brokers and aggregators offer you the facility of comparison, brokers have an edge when it comes to buying a term plan. With their expert knowledge, brokers can guide you to the best term insurance plan. Moreover, online brokers also have a dedicated claim service assistance helpline wherein you can raise your claim-related queries and get them solved. As such, you should prefer to buy a term insurance plan from an online broker.

All said, go buy a term insurance plan today. It is an imperative insurance cover which should not be foregone. When buying, beware. Always compare the term insurance plans available in the market before you choose one. After all, you wouldn’t want to buy the second-best, would you?

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