Buying a Online Term Plan?

For instance, a non-smoker, 30 years old person needs a Online Term Plan of Rs. 1 crore. Age around 30 years is the peak time when you have responsibilities and some of these you carry forward as the time moves ahead. Till the time you reach the age of 55 years, you are able to fulfill most of your responsibilities. So coverage of 25 years should be enough for a 30-year-old person.

Mximum entry age

For young people, this may look like an irrelevant point to compare, but it is important for those who have not bought any life insurance policy till the age of even 40 or 60. Your age at which you buy influences the premium amount to a great extent. You can buy i-Life till the age of 50 years, offers the plan till 60 years, the Reliance Life's Online Term Plan is available till 55 years and offers the plan in the age range of 45 to 65 years.

Maturity age

You should look for the plan that offers maximum maturity age so that you are covered till your maximum possible age. and Online Term Option III have maturity age of 70 years and have 75 as maximum maturity age. If the insured dies within the maturity period, his nominee is entitled to get the sum insured and if death occurs after the expiry of the term, no benefit is provided.

Premium payment

Though, online Term Plans are well-known for being cheaper, there can be discriminating difference in rates due to an applicant's medical condition. For a non-smoker, 30 years old with no trace of any known health condition or any critical disease in family history,  is charging a premium of Rs. 12,977 annually, Online Term Option III is available at Rs. 14,717 annually, the Reliance Life's online term is available at Rs. 15,162 annually and to get, premium of Rs. 15,281 has to be paid annually.

With lowest premium, you also get to choose the frequency for paying the premium that is half-yearly or annually in case of Aviva's i-Life Secure. For the rest of the three plans, premium has to be paid only annually.

Policy term

Generally Online Term Plan are bought for the term ranging from 10 to 30 years, but each company has its different feature-structure. You would find the premium for and Online Term Plan on the higher side. Then again, if you compare the policy term, these plans offer longer period for coverage. You may get tempted to buy the Aviva's i-Life Secure but if your preference is highest maturity age or longer period of coverage, you should buy one out of the rest of the three policies with the lowest premium.

Death benefit

Online Term Plans are known as pure vanilla plans. Every company pays the sum insured at the demise of the policy holder, however, the differences are still there in the way each company pays the death benefit.  Secure pays a lump sum of 10% of the sum insured at the time of death and rest is given by paying 6% of the sum insured at the end of each year, for 15 years. Online Term Option III provides the chosen sum insured as benefit and the rest of the sum insured is received by the nominee at the end of every month for 10 years. While Online Term Plans by provide a lump sum benefit at once.

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