policy bazaar term insurance – Term insurance is a vital financial product that provides financial security to your family in the event of your untimely demise. With increasing awareness about the importance of life insurance, term insurance has gained immense popularity due to its affordability and straightforward structure. PolicyBazaar, one of India’s leading online insurance marketplaces, simplifies the process of comparing and purchasing term insurance plans. This guide covers everything you need to know about term insurance available on PolicyBazaar, including types, features, benefits, how to choose the right plan, and the purchasing process.
1. What is Term Insurance?
Term insurance is a type of life insurance that provides coverage for a specified period or term, usually ranging from 10 to 30 years. In case of the policyholder’s demise during the policy term, the insurer pays a predetermined sum insured (death benefit) to the nominee. However, if the policyholder survives the term, there is no maturity benefit, which distinguishes term insurance from whole life or endowment plans.
Key Features of Term Insurance
- Pure Life Cover: It primarily offers life coverage without investment or savings components.
- Affordable Premiums: Term insurance is generally less expensive than other life insurance products, making it accessible for a broader audience.
- Flexibility: Policyholders can choose the sum insured, term length, and payment frequency.
- Renewability: Most policies offer the option to renew after the term expires.
2. Why Choose Term Insurance on PolicyBazaar?
PolicyBazaar offers a user-friendly platform to compare various term insurance plans from multiple insurers. Here are some reasons to consider purchasing term insurance through PolicyBazaar:
2.1 Comprehensive Comparison
PolicyBazaar allows you to compare term insurance policies from various insurers side-by-side, highlighting differences in premiums, features, benefits, and exclusions.
2.2 Transparency
The platform provides clear information on each policy, ensuring you understand what you’re paying for and what is covered.
2.3 Expert Assistance
PolicyBazaar offers expert guidance throughout the buying process, helping you make informed decisions based on your individual needs and circumstances.
2.4 Claim Support
In case of a claim, PolicyBazaar offers assistance to navigate the claims process, ensuring that you receive the benefits your loved ones are entitled to.
3. Types of Term Insurance Plans on PolicyBazaar
PolicyBazaar features various term insurance plans to cater to different needs and preferences. Here are the primary types available:
3.1 Level Term Insurance
In a level term plan, the sum insured remains constant throughout the policy term. This type is beneficial for those who want to ensure their family receives a specific amount in the event of their demise.
3.2 Increasing Term Insurance
Increasing term insurance features a sum insured that rises at predetermined intervals. This plan is ideal for individuals expecting inflation or increasing financial responsibilities over time.
3.3 Decreasing Term Insurance
In this plan, the sum insured decreases over time, typically aligning with a repayment schedule for debts such as home loans. This type is often suitable for those looking to cover outstanding liabilities.
3.4 Return of Premium Plans
Some term insurance policies offer a return of premiums paid if the policyholder survives the term. While these plans come with higher premiums, they provide the added benefit of a refund.
3.5 Joint Term Insurance
Joint term insurance covers two individuals (usually spouses) under a single policy. It pays out the sum insured upon the demise of either policyholder, ensuring financial security for the surviving partner.
3.6 Convertible Term Insurance
This type allows policyholders to convert their term policy into a whole life or endowment plan without undergoing additional medical examinations.
4. Benefits of Term Insurance
4.1 Financial Security for Loved Ones
The primary benefit of term insurance is the financial protection it offers to your dependents in your absence, ensuring they can maintain their lifestyle and meet financial obligations.
4.2 Affordable Premiums
Term insurance typically offers the highest coverage at the lowest cost compared to other life insurance products, making it an attractive option for budget-conscious individuals.
4.3 Tax Benefits
Premiums paid toward term insurance are eligible for tax deductions under Section 80C of the Income Tax Act. Additionally, the death benefit received by the nominee is tax-free under Section 10(10D).
4.4 Customization Options
Term insurance plans can be customized with various riders, such as accidental death benefit, critical illness cover, and waiver of premium, providing additional protection based on individual needs.
4.5 Simple and Transparent
Term insurance policies are straightforward, making them easy to understand without complex terms or conditions. This simplicity helps policyholders make informed choices.
5. How to Choose the Right Term Insurance Plan on PolicyBazaar
Selecting the right term insurance plan requires careful consideration of several factors. Here are some tips to help you make an informed decision:
5.1 Assess Your Coverage Needs
Determine the sum insured required to cover your family’s expenses and any outstanding debts. A common rule of thumb is to choose a sum insured that is 10-15 times your annual income.
5.2 Consider the Policy Term
Choose a policy term that aligns with your financial responsibilities. If you have young children or dependents, consider a longer-term coverage to protect them until they become financially independent.
5.3 Evaluate Premium Affordability
Compare the premium amounts for different plans on PolicyBazaar. Ensure the premium fits within your budget while providing adequate coverage.
5.4 Check Claim Settlement Ratio
Review the claim settlement ratios of the insurers available on PolicyBazaar. A higher ratio indicates that the insurer is more reliable in settling claims.
5.5 Review Policy Exclusions
Understand the exclusions mentioned in the policy document. Knowing what is not covered will help you avoid surprises during the claims process.
5.6 Look for Riders and Additional Benefits
Consider adding riders to your term insurance policy for enhanced coverage, such as critical illness cover or accidental death benefits.
6. Steps to Purchase Term Insurance on PolicyBazaar
Buying term insurance through PolicyBazaar is a straightforward process. Here’s a step-by-step guide:
Step 1: Visit the PolicyBazaar Website or App
Access PolicyBazaar’s website or download the mobile app. Navigate to the term insurance section.
Step 2: Enter Basic Details
Fill in the required information, including your age, gender, coverage amount, policy term, and other relevant details. This helps filter suitable options.
Step 3: Compare Available Plans
PolicyBazaar will display a list of term insurance plans based on your input. Use the comparison tool to analyze the different policies, looking at premiums, benefits, and exclusions.
Step 4: Select Your Plan
Once you’ve compared the available options, select the term insurance plan that best suits your needs. Review the policy details thoroughly before proceeding.
Step 5: Complete the Application
Fill out the application form with accurate information, including personal details and health history.
Step 6: Make Payment
Choose your preferred payment method to complete the purchase. PolicyBazaar offers secure online payment options.
Step 7: Receive Policy Documents
After the purchase, you will receive the policy documents via email. Review them carefully and store them securely for future reference.
7. Claim Process for Term Insurance
In the unfortunate event of a policyholder’s demise, the nominee can file a claim for the death benefit. Here’s an overview of the claim process:
Step 1: Notify the Insurer
The nominee must inform the insurance company about the policyholder’s death as soon as possible. Most insurers have a dedicated helpline for this purpose.
Step 2: Gather Required Documents
Prepare the necessary documents for the claim, including:
- Original policy document
- Death certificate
- Claim form (available on the insurer’s website)
- Identity proof of the claimant
- Any other documents requested by the insurer
Step 3: Submit the Claim
Submit the claim form and supporting documents to the insurer. This can typically be done online or via post.
Step 4: Claim Processing
The insurer will review the claim, verify the documents, and investigate if necessary. The claim will be settled according to the terms of the policy.
Step 5: Claim Settlement
Once the claim is approved, the insurer will disburse the death benefit to the nominee’s bank account, usually within a specified timeframe.
8. Conclusion policy bazaar term insurance
Term insurance is a crucial financial product that provides peace of mind by ensuring that your loved ones are financially secure in your absence. PolicyBazaar makes the process of comparing and purchasing term insurance simple and transparent, allowing individuals to make informed decisions based on their unique needs. By understanding the types of plans available, the benefits of coverage, and the steps to purchase, you can take proactive measures to protect your family’s future and achieve financial security