Your colleague is doing only one thing these days. Shopping...Shopping...Shopping. He is on his smart phone all the time looking for online deals. Delivery boys visiting the office carrying cartons is regular these days.
Discounts...Deals...Everything is so cheap...
This is the age of the internet and everything can be bought online. So why should life insurance be left behind? Even the humble term life insurance plan not as glamorous as its cousin the Ulip is available online.So buy an online term insurance plan.
The one reason you need to buy an online term life plan…The premiums are so cheap. You could save as much as 40-50% on the premiums you pay for the online term life plan.
The reason : Absence of life insurance agents. No commissions paid to them. This translates to a huge savings in costs and you enjoy the benefits.
Just click : All you need to do is log on and fill in your details such as name, age, occupation, if you suffer from a preexisting disease and all other details deemed necessary.
Compare : You can compare online term life policies offered by different life Insurers and make your choice based on premiums for the online term life plan, claim settlement ratio of the Company, Brand image of the Company and so on.
Payment : The premium payment can be made using internet banking, or through debit or credit cards.
A term life plan pays the sum assured to your nominees (Family) on your (policy holders) death. Term life plans (online and offline) pay a single lump sum (A huge amount of money) to your (policyholders) spouse and kids on the death of the policyholder.
What happens when family members who have no financial knowledge get a huge lump sum of money from an online term life plan? They would most likely squander it, or the wrong advice from relatives might mean all the money is lost. There would be no benefit from the lump sum payments received by your (policyholders) family.
To solve this problem many online term life plans offer you a choice to select the method of payment of the sum assured from the online term life plan.
The basic choice : This is the basic online term life plan .If you (policyholder) survive the tenure of the online term life plan you get nothing, If you (policyholder) die within the tenure of the plan your nominees (family) get a lump sum of money (sum assured).
A higher benefit : You could also select a mode of payment where the sum assured is paid to your family immediately on your (policyholder’s) death. The payments to your family do not stop here. A year later a fixed percentage of the sum assured is paid each month to your family for a fixed time period (say 10 years).
You could also opt for a payment where the sum assured is paid to your nominees (family) immediately on your policyholder’s death, and a year later a fixed percentage of the sum assured is paid each month for a period of time say 10 years. The monthly income paid increases each year (say 8-9% increase each year based on simple interest) till the end of the fixed time period of 10 years. The premiums are higher for this type of online term life insurance plans compared to a basic plan.
You are 30 years of age and avail a feature rich online term life plan paying a premium for a sum assured of INR 50 Lakhs. This plan has a tenure (premium paying time period) of 10 years.
Terms of the policy : Sum assured of INR 50 Lakhs payable to the nominee’s on death of the policyholder. Monthly income of 0.5% of the sum assured paid one year after policyholder’s death for a fixed period of 5 years . Increase in the monthly income by 10% (on a simple interest basis) every year for the remaining time period.
You pay a premium for a sum assured of INR 50 Lakhs. On your policyholders death your nominees (family) get the sum assured of INR 50 Lakhs as a lump sum payment.
What if your family squanders this money? How would they cope with future rising expenses?
The feature rich online term life plan gives your family a monthly income of 0.5% of the sum assured which is INR 50,00,000 * 0.5% = INR 25000. This amount (Sum of INR 25000) is paid to your family each month for a whole year. (This payment is made a year after the death of the policyholder). The payment made to your family increases each year (on a simple interest basis of 10% according to the online term life plan you opt for).
This is 10% of INR 25000 or INR 2500 .The monthly amount paid to your family increases by INR 2500 each year for the remaining 4 years of the online term life plan. First year after policyholder’s death: INR 25,000 each month till the end of the year paid to family members.
Second year after policyholder’s death: INR 27,500 each month till the end of the year paid to family members.Third year after policyholder’s death: INR 30,000 each month till the end of the year paid to family members.
Fourth year after policyholder’s death: INR 32,500 each month till the end of the year paid to family members.Fifth year after policyholder’s death : INR 35,000 each month till the end of the year and then payments cease. Sports teams select their players based on the policy of “Horses for Courses”. You must also select an online term life plan which best meets your expectations.
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