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Is Online Advice The Best Bet When Buying Term Insurance? Research Team | Posted On Friday, July 05,2019, 04:42 PM

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Is Online Advice The Best Bet When Buying Term Insurance?



A financial advisor helps identify the right investment products, according to suitability and risk profile. A financial planner organizes your finances, keeping you well-informed on the decisions made, so that you are able to identify and reach financial goals easily.

It’s wise to pick up a financial advisor to do financial planning. So, if you are planning to hire a good financial planner, you must know what to expect from him. A financial advisor helps avail the best term insurance plan which suits requirements. He can also help pick up the best investments, which match risk profile.

Want to know more on Term Insurance? We at will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

See Also: What is a Term Insurance Plan?

Is Online Advice The Best Bet When Buying Term Insurance?

What a Good Financial Advisor Does?

A good financial advisor can help you with the following:

  • The kind of term insurance plan you need.
  • Help make a household budget.
  • Calculate HLV and subsequently the sum assured you need.
  • How much insurance cover your family needs to maintain current lifestyle on an early demise.
  • Help manage loans and credit cards.
  • The tax benefits you get from term insurance plans
  • Help with the contingency fund
  • What type of term insurance plan you must choose – Simple term insurance or an income replacement term insurance to keep your family’s finances on track in case of any eventuality.
  • Makes sure the sum assured in term life plan is sufficient to repay loans in case of an early demise.

See Also: What is a Term Life Insurance Policy?

Investment Advice From the Financial Advisor:

A financial advisor focuses on gathering your personal and financial data, before imparting financial advice. The collection of data includes evaluating life-stage; when you need the money and how much, what you will use the money for and chalking out a detailed plan to invest the money stepwise to reach financial goals.

This data is then used to show how and when you would achieve financial goals. These projections are determined keeping in mind inflation, your ability to save and return on investment.

Generally, people in India lack the expertise and the understanding, necessary for investing in particular financial products. Most people don’t avail term insurance as there are no survival benefits.

You can find only a handful of people who can actually understand and make investment decisions to reach financial goals. Term insurance is availed for risk protection. It’s the plan which offers maximum cover at minimum premium.

A majority of people don’t realize the importance of term insurance. If you have dependents, you must avail term life insurance. A financial advisor helps understand basic factors like at which age you must avail term insurance, term insurance premiums to be paid or how much sum assured you need to cover your family on an untimely demise.

See Also:Term Insurance Plans with Return of Premium

How to Differentiate Between an Agent and a Financial Advisor While Purchasing a Term Life Plan:

An insurance agent sells you insurance plans. He pushes endowment plans to enjoy a high commission. He may sell term insurance plans, but he gets very less commission, as there are no survival benefits.

The insurance agent doesn’t care about your financial goals. He recommends endowment plans which fetch high commissions. You need a term life insurance plan which is pure risk protection. The financial advisor knows this and recommends term life insurance. This plan offers high mortality cover at low premiums. This plan helps your family enjoy current lifestyle, while getting rid of any liabilities like home loans.

See Also: Term Insurance For Indians

The financial advisor cares for your financial goals and not the insurance agent.

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