Term Insurance

3 facts Google won’t tell you about Term Insurance plans

abhishek — Fri, 16 Jul 2021 06:30:00 GMT

3 facts Google won’t tell you about Term Insurance plans

16-Jul-2021 16-Jul-2021'

Our views of life and wealth keep changing with the times. The Maruti car that you bought in 2005 because it was so fashionable at that time will never be bought by you again in 2025.

On a similar vein, since all insurance products (and especially term insurance plans) have a term of 25 – 30 years, some thought should be given to whether the decision you take today will stand the test of time. After all, you don’t want to be seen driving a WagonR ten years from now, do you?

You can own more than 1 Term Insurance plan

The sum assured (death benefit amount) of your term plan is decided based on your human life value (HLV). As you can surmise, HLV factors in your annual salary at the time of buying a term plan. So, if you have bought a term plan at age 30, its sum assured is not going to be impressive 15 – 20 years later, when your salary has become much higher and inflation is also playing a role in making your old plan’s sum assured look insufficient to take care of your family in your absence.

This is why it might be a good idea to invest in another term plan at the age of 45 – 50 to ensure all your liabilities are covered and your family won’t have to compromise on their standard of living in case you are no longer around.

What factors should decide your Term plan’s sum assured?

Here are the three most important things to consider when buying a term insurance plan:

Is it covering your immediate loans and liabilities?
Is it covering your children’s primary and higher education?
Is it covering your household expenses like the monthly bill of groceries, maidservants, driver, petrol, and so on?

Your term plan’s sum assured needs to cover these expenses. If it is doing so, you can relax – you are adequately covered!

Your ideal sum assured is 15 – 20 times your annual salary.

Your plan’s term should end along with your liabilities

People tend to buy maximum-tenure term plans, which is an indication of incorrect financial planning. Term plans are simply compensating a basic requirement for your family in your absence – your monthly income. When you are actively earning (from age 25 to 65), your monthly income pays for your loans and liabilities and your children’s education and upbringing expenses. However, once you retire, these liabilities are no longer present and therefore there is no need to compensate for them either.

If you have a maximum-tenure term plan, you not only have to pay higher premiums but you also have to keep investing in an instrument that will give you no maturity benefits even after your income has stopped. This is an unnecessary burden.

Haven't invested in a term plan yet? Speak with our product experts today.

M – 86559-86559 | E – support@oneinsure.com

]]>

Go for an Income-replacement Term Plan rather than a Lumpsum Pay-out Term Plan

abhishek — Sat, 09 Jan 2021 06:30:00 GMT

Go for an Income-replacement Term Plan rather than a Lumpsum Pay-out Term Plan

09-Jan-2021 09-Jan-2021'

abhishek

The idea of talking about the financial consequences of one’s death with one’s life partner is sticky and unappealing to many. This stems from the lack of awareness in our society regarding the extremely difficult financial situation our spouse falls into as a result of the death of the other spouse.

It is strongly recommended to talk about one's death with one's life partner. Term Insurance Plans have gained a lot of popularity in India and continue to be one of the bestselling insurance products out there. Many Indian householders opt for term plans for their high coverages and relatively lower premiums.

Although going for a term plan may well be one of the smartest financial decisions one ever takes towards protecting one's family from financial uncertainties, it is even more important to communicate with them the procedure to file a claim if ever the need arises. Similarly, it is important to let them know the other money moves that need to be made to protect your legacy.

Finally, as the title suggests, it is recommended that you opt for income-replacement term plans rather than lumpsum pay-out term plans. Here’s why:

Your spouse and family members will already have lots of things to deal with after your death and may not be in a state of mind to think effectively when it comes to money. And they cannot become financially savvy overnight. In such a scenario, they could mismanage a lumpsum pay-out of the term plan.
Typically, a term plan's pay-outs (regardless of the mode of pay-outs) are 10 to 15 times the policyholder's annual salary, which is sufficient to ensure all liabilities (home loans, car loans, and so on) are paid off and there is enough left over to maintain the same lifestyle while educating children in good schools. But managing this requires a lot of skill and a stable mind. However, an income-replacement plan by design replaces your monthly salary and things continue as normal, financially.
Term plans exist that provide some proportion of the pay-out as a lump sum and reserve the rest for monthly pay-outs to replace your income. You can opt for these if you foresee a lot of loans and liabilities will need to be paid out immediately following your unfortunate demise.
Similarly, term plans exist that provide increasing monthly income, where monthly income increases by 10-20% on an annual basis. This feature helps beneficiaries deal with the effects of inflation.

Last but not least, don't forget to let your loved ones know that whenever they need Claim Assistance, OneInsure will be there to assist the family in settling the claim. They can reach us at 86559-86559 or support@oneinsure.com.

]]>

What the Stats Say about COVID-19, Term Insurance and You

Mohit Mishra — Tue, 20 Oct 2020 08:08:00 GMT

What the Stats Say about COVID-19, Term Insurance and You

20-Oct-2020 20-Oct-2020'

Mohit Mishra

One peek at your Aarogya Setu app will inform you that across India, nearly 75 lakh cases of COVID-19 have been confirmed (as of Oct 19, 2020). Out of this, almost 1.2 lakhs have succumbed to the dreaded corona virus. But, it gets worse…

COVID-19 Stats in India

If you follow genuine reports from the field, you will note that urban centers like Mumbai, New Delhi, Bengaluru, and others make up more than 65% of the COVID numbers in India.

What’s even more distressing, however, is that COVID-19 fatalities have been observed the most among working class males. As per data released by the Health Ministry, although people in age groups above 45 continue to be at more risk from COVID-19 in terms of fatalities, a significant proportion—43%—of deaths have occurred in the relatively younger age bands of 30 to 44 and 45 to 59 years. And the majority of these are males.

Data from a study by the International Institute of Population Sciences (IIPS) shows that over 50% COVID-19 deaths in India have taken place in the 35 to 64 age groups, which is the most economically productive age group in the country.

Mature Householders Need to Step Up

As a mature householder living in urban India, we need to realize that although the Indian Government is hard at work to get the pandemic under control, the virus has proven itself to be one step ahead of even medically and economically advanced countries like France, Germany and the US and has not subsided even after close to a year has gone by.

This makes it absolutely mandatory for mature householders to make provisions in case the worst happens and they are infected by COVID-19 and fall victim to it. In such a scenario, nothing will provide the protection you receive from a good term insurance plan.

Experts agree that investing in term plans makes a whole lot of sense in these uncertain times. They warn that the fight against COVID-19 will be raging for many more years, and under such circumstances, investing in the cheap life insurance option that term plans provide will secure their dependents not only against a sudden stop of incoming salary but will also protect against any unpaid housing loans, car loans, education loans, and so on in case of their untimely demise.

Did You Know?

Life insurance companies in India have clarified that death due to COVID-19 will be treated as a general death and the claim will be admissible if the corona virus was diagnosed post policy issuance.

Additionally, unlike a health insurance plan, term plans have no waiting periods, which means that once the policy is issued, the plan starts providing coverage immediately.

Things to Know about Term Insurance

Term plans are highly adaptable policies whose every aspect can be customized as per your needs. Here are some of the important ones:

Sum Assured (payable to dependents in case of death)
Pay-out options (you can choose lump sum, monthly, or a combination of both)
Policy term and coverage period (for example, you can choose coverage for 10, 20, or even 50+ years!)
Payment term (for example, pay the whole premium at once, pay for 5 years, 10 years, or until the policy term ends)

For more, you may read this article: 3 Most Important Things to Consider When Buying a Term Insurance Plan.

The Role of OneInsure

OneInsure, being a diligent aggregator for term insurance plans, has quickly adopted to the need for a 100% digital process and we allow you to buy term insurance with a completely contact-less process, giving you the benefit of a robust digital process, convenient access, and hassle-free claim experience.

Don’t let complicated term insurance jargon and the add-ons (riders) available with term plans confuse you. Simply call a OneInsure term insurance executive at 86559 86559 and they will take you through the process step by step in a simple manner.

We look forward to assisting you and your family in these challenging times.

Be Sure with OneInsure
M – 86559 86559 | E – support@oneinsure.com

]]>

All Term Plans Cover Acts of God Too!

Aditya Nair — Wed, 11 Mar 2020 05:35:00 GMT

All Term Plans Cover Acts of God Too!

11-Mar-2020 11-Mar-2020'

Aditya Nair

The novel coronavirus COVID-19 has been in the news a lot lately. With the global outbreak, positive cases in India emerging at a steady rate, and the fact that there is still no cure, it is a cause for grave worry.

While medical experts and researchers are grappling to find a cure, the truth is that not much is known about this new virus.

They say wearing masks, avoiding mass gatherings, and washing hands regularly are good precautions, but these are only precautions and inhibit the regular flow of life and work too. For example, how can anyone avoid mass gatherings? If you travel in a bus or train, you are in a mass gathering. If you visit a mall, you are in a mass gathering. If you simply go to work, you are in a mass gathering too.

Getting infected with COVID-19 is what would be termed as an act of God. And, for the most part, this is beyond anyone’s absolute control. However, what can be controlled is what happens in case your infection is acute and you fall under the 2% of those who are not able to recover from the disease. As a responsible householder, you should not leave your family's financial situation uncertain and without a firm safety net in case you are no longer around.

All term plans cover acts of God. Naturally, death due to an illness is also covered in these plans. As you might already be aware, term plans come with the advantage of comparatively low premiums and very high pay-outs.

So, what are the pay-outs going to be used for:

Will cover your immediate loans and liabilities
Will cover your children’s primary and higher education fees
Will cover household expenses like monthly bill of groceries, maid servants, driver, petrol, and so on

Make sure before buying a term plan that the sum assured (pay-outs) covers the mentioned expenses. If it is doing so, you can relax – you are adequately covered. It’s really that simple!

In case you are wondering how to calculate primary and higher education expenses, look no further:

Calculate your children’s current annual tuition fees and multiply it by 6, 8, 10, or any number depending on which standard they are in currently.
For higher education, note the current fees of the course and multiply it by around 2.5 for every 10-year period. For example, if MBA costs 15 lakhs now, it is going to cost around 40 lakhs in 10 years’ time. This is the inflation-adjusted figure.

Beyond this, if there are further queries, our team of insurance experts, who eat, drink, and breathe insurance are at your service at support@oneinsure.com or 86559-86559. Feel free to reach out to us.

]]>

Are You Ready for 2020?

Aditya Nair — Thu, 12 Dec 2019 07:29:00 GMT

Are You Ready for 2020?

12-Dec-2019 12-Dec-2019'

Aditya Nair

The New Year is almost upon us! 2020 is sure to be full of potential and purpose for you and your family! We are sure you have great plans for the New Year as well as for your life, in general.

While planning ahead is a great thing to do, none of us truly know what life holds in store for us. And while we may treat life like a test match, what if it turns out to be a 20:20 match instead? Are you ready for a 20:20?

Let’s see a real-life example of what we mean.

In Oct 2018, a OneInsure Relationship Manager met with an existing customer (whom we shall call Mr. Kumar) to discuss a term life plan. Since Mr. Kumar, who was only 36 at the time, was drawing an annual salary of close to INR 1 crore, had a young family, and was his parents’ only child, it was quite logical for us to propose that he opt for a term plan in order to provide a financial safety net for his family in case of his untimely demise.

At that first meeting in October, Mr. Kumar was very optimistic about a term plan and even his family agreed that a term plan of about INR 7 crores would be ideal. However, with the passage of time, he began making excuses to not go ahead and started thinking that a term plan was not necessary.

Mr. Kumar kept avoiding the term plan for several months and eventually informed OneInsure’s RM that he had already invested heavily in mutual funds and other products and he did not feel insurance was necessary.

Then, all of a sudden, in May 2019, Mr. Kumar passed away due to a massive heart attack. From external appearances, Mr. Kumar was fit and vices were not a problem for him. He could not be blamed for thinking his life was going to be long. By investing in mutual funds, he thought he was gathering wealth for a relaxed retirement. However, his mistake was that he did not even consider the possibility that his life could be cut short suddenly.

Life is truly uncertain, and today’s high-pressure working environment is like a ticking time bomb that can trigger fatal health issues and leave our families teetering on the brink of poverty. This is why insurance is important and there should be no delays in buying them, especially term insurance. If Mr. Kumar had bought a term plan without delays, his family would today have a constant income from the term insurance pay-outs, which would perfectly replace Mr. Kumar’s salary in his absence.

With Mr. Kumar gone, his young family will now have to live a life of financial dependency on relatives. Moreover, their standard of living will drop significantly because their family’s annual income has gone from INR 1 crore to INR 0.

A term plan is your family's financial safety net in case the worst happens to you earlier than expected.

Queries on term insurance?
Reach out to OneInsure at 86559-86559 or support@oneinsure.com.

]]>

Things Your Agent Didn't Tell You about Term Insurance

Aditya Nair — Mon, 09 Sep 2019 06:52:00 GMT

Things Your Agent Didn't Tell You about Term Insurance

09-Sep-2019 09-Sep-2019'

Aditya Nair

Our views of life and wealth keep changing with the times. The Maruti car that you bought in 2005 because it was so fashionable at that time will never be bought by you again in 2020.

You Can Own More than One Term Plan

What Factors Should Decide Your Term Plan’s Sum Assured?

Here are the three most important things to consider when buying a term insurance plan:

Is it covering your immediate loans and liabilities?
Is it covering your children’s primary and higher education?
Is it covering your household expenses like the monthly bill of groceries, maidservants, driver, petrol, and so on?

Your term plan’s sum assured needs to cover these expenses. If it is doing so, you can relax – you are adequately covered. It’s really that simple!

Your ideal sum assured is 15 – 20 times your annual salary if your salary is below Rs 10 lakhs/year. If it is above this, the ideal sum assured for you is 12 – 15 times your annual salary.

Your Plan’s Term Should End along with Your Liabilities

Return-of-premium Term Plans

These plans, as the name suggests, return all the premiums you have paid over the years, back to you when you survive the entire term of the plan. These plans cost more but provide a feature that many would like to avail.

Haven't invested in a term plan yet? Speak with our product experts today:

M – 86559-86559
E – support@oneinsure.com

Be Sure with OneInsure

]]>

Don’t Live a Substandard Life – Get Insured before It Is Too Late

Aditya Nair — Mon, 15 Jul 2019 06:40:00 GMT

Don’t Live a Substandard Life – Get Insured before It Is Too Late

15-Jul-2019 15-Jul-2019'

Aditya Nair

Every smart Indian realizes the crucial role a term plan plays in their financial portfolio. There is no product quite like it in the market. For a sum as low as Rs 450 a month, you can be covered for Rs 1 crore for a term of 30 years.

This term plan will pay-out the lump sum money to your family in case you meet an untimely death anytime in the term of 30 years. This Rs 1 crore will ensure your family is not thrown into the depths of poverty. This money will make sure your children are educated well and that your family does not have to make sacrifices to their lifestyle because your income has stopped.

Sounds great, right? A term plan is the perfect safety net in case the worst happens to you.

However, there is a catch. And you need to be careful you are not disallowed from buying term plan coverage. Here are some points you probably did not know and need to be careful about:

Once you cross 40, it becomes increasingly difficult to buy pocket-friendly term insurance
If you suffer from one issue in the body, like high BP or Diabetes, insurers will increase premiums quite sharply regardless of your age
If you suffer from two issues, you will only be eligible for "substandard" term insurance

What Is Substandard Insurance?

Due to the reasons mentioned earlier, if a policy seeker does not qualify for a standard insurance policy, the insurer could provide them a substandard insurance policy. Substandard insurance policies are to be avoided at all costs because they typically contain special or restrictive provisions that negatively affect the airtight nature of insurance. Moreover, the insured individual will have to pay higher premiums due to the higher risk associated with their life.

Additional Reading

Contact Us

M – 86559-86559 | E – support@oneinsure.com

Be Sure with OneInsure

]]>

Full Disclosure Is of Utmost Importance in Term Insurance

Mohit Mishra — Wed, 08 Aug 2018 12:01:00 GMT

Full Disclosure Is of Utmost Importance in Term Insurance

08-Aug-2018 08-Aug-2018'

Mohit Mishra

As the reader knows, typical term insurance plans are pure life plans. The pay-outs are given to the nominee on a single condition, that is, if the policyholder passes away while the policy is active. This means that if you own a term plan, claim can only be filed if you are no longer with your family.

Due to this, it is of utmost importance to ensure the information given in the paperwork when you buy a term plan is absolutely accurate and there are no material facts that you have not disclosed. This will make the claim process smooth and the pay-out of the term plan will be a support to your family during a tough time instead of being another thing to worry about.

So, what are the typical things you need to ensure are properly documented in your insurance papers?

Medical history and habits – Being 100% transparent about your health, your medical history, and habits like smoking and drinking is of utmost importance.
Relevant hobbies – If you engage in adventure sports like trekking, mountaineering, rappelling, or others, this needs to be disclosed to the insurer.
Occupational hazards – The insurer takes into consideration the occupational hazards too when they underwrite policies (determine risks and decide premiums). Be sure to not hide anything.

When you sign on the dotted line on a term insurance policy, you are declaring that you have disclosed everything to the best of your knowledge. If something is discovered by the insurer later or during a claim scenario that contradicts your disclosures, claim will be rejected.

Want to Change Policy Details? It’s Not Too Late Even Now!

Get in Touch with the Experts at OneInsure

M – 86559-86559 | E – support@oneinsure.com

Loved this article? Want to read more? All you need to do is send “Start” through WhatsApp on 98202-25238 to get useful articles right on your WhatsApp for free. Here are some additional services we offer:

Ask all your insurance queries to our experts right here on WhatsApp
Get tax certificate
Surrender your policy
Change policy details
And many other services

]]>

Buying Term Insurance? Don’t Forget Personal Accident and Critical Illness

Mohit Mishra — Tue, 17 Jul 2018 05:55:00 GMT

Buying Term Insurance? Don’t Forget Personal Accident and Critical Illness

17-Jul-2018 17-Jul-2018'

Mohit Mishra

When buying Term Insurance, include the Personal Accident and Critical Illness riders along with it, suggest the experts on the OneInsure Research Desk. Read on to know why.

Instead of having 3 separate decisions to make, you are covered for any and all circumstances in one go, which is advisable.

Personal Accident insurance covers you in case of unforeseen scenarios and pays in the case of permanent disability, broken bones, or burns due to an accident, which your term plan will not do. PA insurance also provides benefits like hospital cash and ambulance charges.
Critical Illness insurance covers you when you are diagnosed with one of the predetermined life-threatening illnesses specified in the policy. While term plans will make the pay-out after death, CI insurance ensures you have a large lumpsum pay-out while you are hospitalized so you can fight the disease without worrying about finances.

Besides the previous point, the premiums of buying a term plan with PA and CI riders is generally going to be lower than buying these 3 insurance plans separately.

Lastly, this decision makes your life hassle-free as there is just one premium to pay, no burden of remembering 3 premium payment dates, and you know you and your family are covered for any eventuality.

Ask all your insurance queries to our experts on WhatsApp
Get tax certificate
Surrender your policy
Change policy details
And many other services

]]>

3 Most Important Things to Consider When Buying a Term Insurance Plan

Mohit Mishra — Tue, 10 Jul 2018 09:33:00 GMT

3 Most Important Things to Consider When Buying a Term Insurance Plan

10-Jul-2018 10-Jul-2018'

Mohit Mishra

People are always grappling with what is the best sum assured figure for their term plans. In this piece, you will see how it is a question of simple mathematics if you know what to calculate.

Here are the three most important things to consider when buying a term insurance plan:

Is it covering your immediate loans and liabilities?
Is it covering your children’s primary and higher education?
Is it covering your household expenses like monthly bill of groceries, maid servants, driver, petrol, and so on?

Your term plan’s sum assured needs to cover the mentioned expenses. If it is doing so, you can relax – you are adequately covered. It’s really that simple!

In case you are wondering how to calculate primary and higher education expenses, look no further:

Calculate your children’s current annual tuition fees and multiply it by 6, 8, 10, or any number depending on which standard they are in currently.
For higher education, note the current fees of the course and multiply it by around 2.5 for every 10-year period. For example, if MBA costs 15 lakhs now, it is going to cost around 40 lakhs in 10 years’ time. This is the inflation-adjusted figure.

Insurance companies have noted that term plans are highly popular among urban Indians and have done their best to give policyholders the advantages of riders and add-ons that can be opted for along with the primary term plan in exchange for marginally higher premiums (never more than 30% of the base policy's premium). Some of the more popular riders include:

Accidental Death Rider – With accidents claiming so many lives across the globe, it only makes sense to avail accidental death rider. This rider pays an additional benefit over and beyond the policy's death benefit to your beneficiaries if you meet an untimely death in an accident.
Critical Illness Rider – A critical illness rider pays out a lump sum benefit to the life insured when s/he is diagnosed with a serious health condition. You can use the payout to meet the hospital bills and keep your household running. Carefully go through the type of illnesses covered under this rider since they tend to vary from one insurance company to another. Cancer, renal failure, and the first heart attack are examples of the critical illnesses that are covered.
Waiver of Premium – The waiver of premium rider helps keep your policy active even when you're unable to make future premium payments because of loss of income due to disability or critical illness. In simpler words, your premiums get waived if you experience disability. It must be noted that there is a waiting period with this rider.
Disability Income Rider – With the disability income rider, you stand to receive a regular income from the insurance company should you become completely disabled and cannot work. Insurance companies generally pay out a monthly income at the rate of 1% of the full value of the policy.

Ask all your insurance queries to our experts right here on WhatsApp
Get tax certificate
Surrender your policy
Change policy details
And many other services

]]>

Don’t Fall into the Trap of Maximum Tenure Term Plans

Mohit Mishra — Fri, 29 Jun 2018 12:31:00 GMT

Don’t Fall into the Trap of Maximum Tenure Term Plans

29-Jun-2018 29-Jun-2018'

Mohit Mishra

It is a tendency among Indians to go for maximum tenures when it comes to their term insurance plans. People want to buy term plans that will provide coverage well into their 80s! This is sheer lack of financial planning.

What we need to realize is that term plans are simply compensating a basic requirement for your family in your absence – your monthly income. When you are actively earning (from age 25 to 60), your monthly income pays for your loans and liabilities and your children’s education and upbringing expenses. However, once you retire, these liabilities are no longer present and therefore there is no need to compensate for them either.

At most, you will be paying for your children’s education until you are 60 – 62 years old. Moreover, according to current trends, it is quite clear that you will not have to worry about your children’s marriage. With the concept of simple, fast weddings gaining popularity, families of the future will not be spending as much on marriages either. Additionally, it is safe to assume your housing loans and car loans would be paid off while you are actively earning too.

Then why buy a product that compensates for your income till you are 75 or 80 years old? Apart from the reasons stated above, the difference between premiums for term plans with a tenure till you are 60 and term plans with maximum tenure will be well over 20% and almost touching 30%. There is absolutely no need to pay this extra money.

Therefore, the OneInsure Research Team suggests you to only compensate for your income while you are earning and to not compensate for income when you are no longer earning and your liabilities are over. Otherwise, the premium of the term plan itself will become a liability post-retirement!

Compare term plans in just a click!

-- -- --

Ask all your insurance queries to our experts right here on WhatsApp
Get tax certificate
Surrender your policy
Change policy details
And many other services

]]>

Term Insurance – Dos and Don’ts

Mariya Panwala — Wed, 24 Jan 2018 13:01:00 GMT

Term Insurance – Dos and Don’ts

24-Jan-2018 24-Jan-2018'

Mariya Panwala

Buying a term plan is a long-term investment decision which needs to be taken meticulously. It therefore becomes important that you do not miss out on any significant point. So here is OneInsure with a list of Dos and Don’ts that will help you tick off one by one all the primary things that you need to do before you settle for any particular plan. Find the list below start ticking off.

Dos

1. Deliberate, inquire and ask questions before buying your term plan

Before settling for any Term Plan, make sure to ask your insurance agent as many questions as you may have related to your policy. Do not hesitate even if you think your questions are stupid. Ask them away. Get to know all the necessary details of the plan from the coverage amount to its premiums and premium paying term. Explore the hidden clauses, check what is covered and what are the exclusions. Only after you’re completely satisfied that you’ve obtained all the necessary information, should you sign on the dotted line.

2. Consider adding essential riders

Riders are like the additional toppings that you get to choose yourself on a pizza crust. Think of taking accidental & critical illness riders while buying your term plan, as these riders will take care of your financial emergencies in case of unfortunate events like accidents and major illnesses. You can add these riders as per your requirement and boost your policy by giving it a comprehensive coverage against all possible odds.

3. Compare all the plans before choosing the most suitable one

Before going for a particular plan, make sure you’ve checked and compared other similar options. An apple-to-apple comparison will give you a clear idea as to what is more beneficial to you and help you make a reasonable decision.

Don’ts

1. Do not wait until it’s too late

Do not procrastinate the purchase of term plan either out of laziness or indecisiveness. By doing so, you’re putting the financial security of your loved ones at stake. So, take a decision and get yourself covered at the earliest. Also, why delay it when buying earlier would cost you lesser premium? Yes, as long as you’re young and healthy, the premiums that you pay on your term plan will be lesser than otherwise.

2. Do not hide any medical history from your insurer

Before you buy your term plan, the principle of ‘utmost good faith’ needs to be taken care of. So, let your insurer have all the details of your medical and health history. If you’re a smoker, let them know. If you have a pre-existing disease, let them know. This will only prevent a potential claim rejection in the future, so make sure that you do the needful.

To conclude, it is necessary that your loved ones are aware that you have bought a Term Plan. After all, if the need arises, they will be the ones who will be initiating the claim. So, once you’ve bought the policy, appoint your nominee/s, inform them about the same and keep them in the loop concerning any updates on the policy.

]]>

5 Most Useful Term Insurance Riders

Joan — Fri, 17 Nov 2017 04:59:00 GMT

5 Most Useful Term Insurance Riders

17-Nov-2017 17-Nov-2017'

Joan

Thinking about how to boost your term plan coverage to support your loved ones? Well, this is where riders can be of help to you. Term insurance riders add that extra bit of security to your policy, and all you have to do in return is pay a little higher premium. Riders strengthen a term plan by providing additional benefits, besides what you get in the core offering with a term plan – death benefits.

There are several riders you can add to your term insurance cover. In this article, we will look at the 5 most important term insurance riders that you really should consider including in your plan.

Accidental Death Rider

With accidents claiming so many lives across the globe, it only makes sense to avail the accidental death rider. This rider pays an additional benefit over and beyond the policy's death benefit to your beneficiaries in the event you meet an untimely death in an accident. The death of the primary earning member can have a huge impact on the family's finances, and for such individuals, the accidental death benefit rider is definitely a must. In an event of the demise of the life insured, the family gets almost twice the sum assured.

Critical Illness Rider

A critical illness can wash out a person's savings in an unprecedented way. Since this can happen without any warning, it's advisable to include a critical illness rider to your life insurance cover. A critical illness rider pays out a lump sum benefit to the life insured when s/he is diagnosed with a serious health condition. You can use the pay-out to meet the hospital bills and keep your household running. Carefully go through the type of illnesses covered under this rider since they tend to vary from one insurance company to another. Cancer, stroke, and heart attack are usually covered.

Accelerated Death Benefit Rider

Watching a loved one suffer from a terminal illness does not just drain you emotionally, but your finances take a beating as well. The medical bills that total up for availing treatment at any of the country's top hospitals are enough to wipe off the family’s savings. To prevent this from happening, it is wise to get an accelerated death benefit rider. With this, cash advances are paid out (against the death benefit) in the event the life insured is diagnosed with a critical illness. The portion of the death benefit that is paid out can be used to offset the costs related to treating a terminal condition or chronic illness.

Waiver of Premium

The waiver of premium rider helps keep your policy active even when you're unable to make future premium payments because of loss of income due to a disability or critical illness. In simpler words, your premiums get waived if you experience disability. It must be noted that there is a waiting period with this rider. Future premiums will be waived off only if the life insured contracts a critical illness or suffers from disability after a certain period following the commencement of the policy.

Disability Income Rider

With the disability income rider, you stand to receive a regular income from the insurance company should you become completely disabled and cannot work. Insurance companies generally pay out a monthly income at the rate of 1% of the full value of the policy. Check the policy documents to see the amount of income payable and whether it is paid for a certain timeframe or for the whole duration of the disability.

Before adding riders to your policy, it helps if you take some time out to study them in detail – their benefits, inclusions, exclusions, and other features. Compare the costs of various riders offered by different life insurance companies in the market and shortlist those that are pocket-friendly. Finally, it must be noted that although the aforementioned riders are beneficial in providing additional coverage to your term plan, you must read through your policy brochure before opting for them. See what your plan already covers and wherever you think the protection is inadequate, choose a rider to fulfill that need.

]]>

What NOT to Consider While Buying a Term Plan

Sumanas — Tue, 26 Sep 2017 14:00:00 GMT

What NOT to Consider While Buying a Term Plan

26-Sep-2017 26-Sep-2017'

Sumanas

When the entire world is opinionating on the subject of “things to consider” while going on a vacation, raising a child, buying a car, planning for retirement, etc. I guess it also makes sense to list some of the things that you don’t need to consider while buying a term plan. How about that!!!

The next most logical thought that comes to the mind is if it’s not important then why to read about it? Point being, here we will try and list things that form those little questions (read doubts) in our mind that the popular advisory entities don’t mention (their assumption being that the reader is already aware or the doubt by itself is too basic).

Let’s get started with what’s not to worry about while buying a term plan.

Claim Ratio of the Insurance Company - Of the numerous articles and search pages that you would have come across or that financial wizard of a friend you would have spoken to, all would have highlighted the importance of the claim settlement ratio of the insurer you are considering to buy the plan from. The fact of the matter is you don’t have to. Let’s see why, the claim ratio of the insurer is derived from the simple mathematical calculation i.e.

CLAIM SETTLEMENT RATIO = No of Claims Settled/ Total Number of Claims Received

So in a year if the insurer receives 100 claims and pays 50 then for that year its claim ratio will be 50% (which is low). This generally happens for a variety of reasons mostly for new insurers where the denominator in the equation itself is very low i.e. the total number of claims that the company receives is very low and a small number of those are not eligible and so their claims are denied, this small number damages the company’s overall ratio at a great length. This is just about the equation whereas the bigger picture to see is that an Insurer proactively tries to settle all claims, as the disrepute it attracts due to not paying a claim (in money terms) far outweighs the settled amount. This is a company ratio and has got nothing to do with your one on one contract with the insurer.
What you should do to take care of this aspect is to make sure that you have divulged all information to the insurer in the proposal form and at the time of a medical examination, truly and to the best of your knowledge. Hiding a simple smoking habit can cost your dependents their financial independence.

Insurance Company Winding Up or Acquired - This has come up for discussion 7 times out of 10 during our customer meetings. Although this line of worry is slowly diminishing in the metros, but still worth a mention here. The answer is again a You don’t have to worry about this, as the insurance regulator IRDAI has laws to make sure that an insurer cannot wind up. The Insurance policy is a contract between the insured and the insurer and the existing laws make sure that irrespective of the situations or the conditions, the clauses of the contract are honored by the insurer.
So what happens if an Insurer decides to windup business in our country? The only way that can happen is if another insurer takes over (in a way acquires) the operations of that company and the insured’s contract with all its terms, conditions and clauses stays as it is.

Should One Choose a Private Insurer over a Public Sector Insurer – The answer to this is also simple. It doesn’t matter. Please focus all your energies in choosing the term plan you want to buy from the variety available in terms of cost, benefits, features, add-ons, etc. This is how you will be able choose the plan that perfectly fits your requirement, everything else (hygiene) is the same whether it’s the Life Insurance Corporation of India or any other Private Sector Insurer. They will abide by the same laws laid down by the regulator.

What if the insured person dies in a war or a terrorist activity – Interestingly, this is among one of the questions that generally doesn’t come to the mind but now that we are talking about it, let’s understand this bottom-line statement. Life Insurance policies cover the event of death irrespective of the reason of death. So whether it’s a terrorist activity, natural calamity, war or even the most extreme case of suicide (after 1 year of policy issuance), it really doesn’t matter. So, when you take the term plan you should be clear in your mind that your contingency plan for your family is intact, irrespective of the circumstances of death.

The Final Words – Go ahead and decide what term plan best suits your needs. Whether a lump sum payment or a monthly income option or a whole life term plan or just a plan to take care of your mortgage. Focus on the right things to decide and not bother about the things that really don’t matter.

]]>

Is Term Insurance with Monthly Income a Good Option?

Mariya Panwala — Sat, 26 Aug 2017 11:35:00 GMT

Is Term Insurance with Monthly Income a Good Option?

26-Aug-2017 26-Aug-2017'

Mariya Panwala

Given that the cost of living is rising each day, it is up to you to ensure that your near and dear ones are financially secure in the event you are no longer with them. To meet this need, insurance companies have designed new term policies where a monthly pay-out is provided to your family members should something happen to you.

The OneInsure Research Desk has also observed that an increasing number of urban Indians are opting for the combination of mutual funds and term plans in their financial portfolio. Let's briefly see why term plans have become the foundation of the urban Indian's financial planning:

Term plans, when triggered, act as income replacement for your family in your absence
Typically, a term plan's pay-outs are 10 - 15 times the policyholder's annual salary, which is sufficient to ensure all liabilities (home loans, car loans, and so on) are paid off and there is enough left over to maintain the same lifestyle while educating children in good schools

Coming to the question of whether term insurance with monthly income is a good option - well, it all comes down to your situation. Monthly installments help support your family’s regular financial needs. If you feel that your family members may not know how to handle a lump-sum pay-out in the unfortunate event of your demise, then it is recommended that you go for this option. Having a regular income makes it seem less stressful than taking a lump sum, especially when your beneficiaries are not experienced investors.

Some monthly income options you can consider while buying a term policy:

Part sum assured (high proportion) with monthly income - Under this, about 60-70% of the total sum assured is paid to beneficiaries in lump sum after the passing away of the policyholder. The remaining amount is paid in monthly installments, which will help support the family’s monthly financial needs.

Part sum assured with monthly income (equal proportion) - Here, half the total sum assured is paid in lump sum to the beneficiaries, while the remaining half is paid out as monthly income in equal proportions.

Sum assured with increasing monthly income - Here, monthly income increases by 10-20% on an annual basis. This feature helps beneficiaries deal with the effects of inflation.

Before buying a term plan, make sure to compare the different premium payment modes and select one that you believe will be the most useful in catering to your family’s financial needs. You could consider the sum assured with increasing monthly income option, as it will ensure your family is covered against inflation.

]]>

Term Insurance Plan – All Key Questions Answered

Shashank — Fri, 16 Jun 2017 10:19:00 GMT

Term Insurance Plan – All Key Questions Answered

16-Jun-2017 16-Jun-2017'

Shashank

“A man who dies without adequate life insurance should have to come back and see the mess he created.” – Will Rogers

The following article will provide a brief and clear understanding of term insurance plans. The objective is to give out concise answers to some frequently asked questions by term plan seekers.

What Is Term Insurance?

Term insurance is a pure risk cover plan that provides coverage to the beneficiaries of the policyholder in the event of his death while the policy is active. In case the policyholder survives through the policy period, s/he shall have to forgo the cover. Nonetheless, there are certain plans available in the market today wherein, if one survives through the policy period, one gets back the premium; note, however, that such plans have higher premium amounts.

Also, a term plan is the least expensive type of life insurance (the other one being endowment insurance plan – explained here later).

When are you eligible to buy term insurance?

You can buy a term insurance plan as early as age 18; however, you’ve got to be earning if you wish to buy a term plan that early; otherwise, you need a proposer. At the time of this writing, the maximum age to buy a term plan is 65 years. Note that the later you buy, the higher will be the premium you pay.

Why should you buy term insurance?

Term insurance is an absolute must when:

Your family relies solely on your income
You have outstanding liabilities to be paid in the form of home loan, business loan, and others
You do not want your family to bid farewell to their dreams in case you’re not around

How is the cover amount paid to the beneficiaries?

The insured can choose one of the following pay-out methods for their beneficiaries:

Get a lump sum amount of the policy cover on death
Get a monthly regular income
Get a combination of lump sum and monthly regular income

Let’s take an example for better understanding:

Insured chooses Option A. The cover is Rs 1 crore. His family shall receive a lump sum amount of Rs 1 crore in the event of his death.
Insured chooses Option B. The cover is Rs 1 crore. His family shall receive a regular income every month until the entire corpus (Rs 1 crore) is written off.
Insured chooses Option C. The cover is Rs 1 crore. His family shall receive a certain lump sum amount and the remaining amount shall be paid as regular income until the entire amount is written off.

When should you buy term insurance?

The myth is that term insurance plans should be bought when you’re about to retire. But do you know if you cross a certain age, the risk cover enhances and so does your annual premium?

See, the amount of cover that you can opt for is available at all ages, although if you start early, the premium that you would be paying would be lower. Also, if you start a term plan at an early age (say, in your early 20s), you have fewer financial obligations. You’ve just finished your education, have started working, and you are probably paying off your education loan. So, if you buy a term plan at this age, it would be much cheaper and you could pay it easily. Also, in your absence, your policy cover would pay off your outstanding liabilities, which will reduce the burden on your parents’ shoulders.

However, with the advancement in your age, your financial obligations elevate. You’ll be paying for your home loan, car loan, children’s education, and the list will never end. Then, towards your retirement, your medical expenditure would be at its peak.

That being the case, it is wise to gear up as early as you can. We understand that you’re alive and kicking, but death and diseases would not wait for you to grow old and weary. It may come on the scene when you least expect it. As long as you’re healthy and young, your premiums would be cheaper. So, do not procrastinate an absolute necessity unnecessarily, when in fact you can take care of it by paying a small sum every month or year.

What Is an Endowment Plan and How Is It Different from a Term Plan?

Endowment plans are a combination of both insurance and investment (endowment plan = insurance + investment). The policyholder will receive a guaranteed pre-determined sum once the policy matures. The policyholder is eligible to this cover even if he/she survives through the policy period.

Under a term plan, however, the beneficiaries of the policyholder will receive a guaranteed death cover, as discussed earlier.

To sum it up, a term plan is a pure risk cover policy that provides financial protection to your beneficiaries in the event of death. Whereas in an endowment plan, if you survive the policy period, you will receive the bonus and cover amount, and in the event of your death your beneficiary will receive the cover amount.

One of the reasons, however, for choosing a term plan is its lower premium.

For example,

If you’re a 30-year-old, non-smoker male, drawing an annual income of 3-5 lakh, you would be paying as low as 7,000 annually for a 30-year term policy paying out Rs 1 crore
If you’re a smoker, for the same cover, you would be paying around 11,000 annually
If you’re a female, your annual premium would be lesser than the previously mentioned amounts for both categories (smoker and non-smoker).

Contrarily, in an endowment plan, you would be paying over Rs 1 lakh annually for the same cover (Rs 1 crore). But an endowment plan, of course, provides returns on its maturity, while a term plan covers only the risk of death.

In a nutshell, lower premium + higher coverage = term plan. Ergo, term plans are affordable and highly sought.

What should be the duration of your term plan?

DO NOT opt for a plan with a short term when you’re intending to buy a term plan at an early age. Let’s say you’re 25 and you buy a term plan with a duration of 10 years. Now, when your policy expires after 10 years, you will need to buy a new term plan. Rather, when you buy a term plan for the first time, opt for a plan with a longer term. For example, if you’re a 30-year-old, prefer a plan of 35-40 year term period.

Final Verdict

You’ve got the term plan, great!! But now, the very first thing you’re required to do is to intimate your family/beneficiaries about the same. Make them understand the policy because they would be the ones who might ultimately file a claim for the cover. Make sure they know all the necessary and important details about your policy.

Leave these headaches on us, all you need to do is download our app from the following links and add your basic policy and personal details on to the app.

Android: Click Here

iOS: Click Here

]]>

How to decide Policy Term in Term Insurance

Varghese — Thu, 04 Aug 2016 05:30:00 GMT

How to decide Policy Term in Term Insurance

04-Aug-2016 04-Aug-2016'

Varghese

Buying a wrong or inadequate Term insurance cover can defeat the whole purpose of buying insurance. Just like an umbrella, Term insurance is meant to cover you during the rainy days of your life and it should last as long it rains. So along with the amount of the cover, the duration of the policy is also a key factor to be considered. In this article, we will explain how to decide upon the Policy Term in a Term Insurance Plan.

The factors to be considered while determining the policy term are

Age
Outstanding Liabilities
Goals and Priorities
Affordability, etc.

Age

Term policies are available for 10, 15, 20, 25 & 30 years. If your current age is around 30 then you should look for a term plan of around 25 to 30 years, which could be your retirement age, as until then your family will be dependent on your income.

Outstanding Liabilities

If you have a home loan or any other liability say for a period of 20 years then it is advisable to choose a term plan for at least the same number of years so that your family is not burdened with the pressure of clearing your debts. So asses your liabilities and decide the policy term.

Goals and Priorities

If you have a child and have a long-term goal such as a child’s higher education, marriage, etc. then you need to select a policy term which can accommodate these important events of your life. For example, if you have a child who is 3 years old and would need funds for higher education after 15 years then your policy should be for at least 15 years.

Affordability

Term plans are usually expensive when taken for a longer tenure but it is cheaper when taken at an earlier age. So take your income, expenses, inflation rate & future commitments into consideration while deciding upon the policy term. Don’t commit for a very high premium which you may not be able to pay for a longer period.

So consider the above factors and compare the policies online to find a Term Plan that best suits your needs.

Get a Quote Now
Compare & Buy Insurance Plans in Minutes

]]>

How Much Term Cover Should One Have?

Mon, 17 Aug 2015 06:59:00 GMT

Term assurance is the purest and most economical form of insurance. It is designed in a way where benefits are payable only on the death of the policyholder within the term.