Purchasing a term insurance policy isn't as straightforward as some would consider it to be. In most cases, individuals fail to understand the actual essence of a term plan and focus too much on the unnecessary details. One reason why you should consider buying an online term plan is the availability of resources over the internet to help you understand the concept, benefits, and functionalities of a term policy.

How to Initiate the Buying Process?

Although you can always skip details and directly connect with a reliable insurer for online term insurance purchase, it is always advisable to research before proceeding. A term insurance buying process is always an exhaustive one, and there aren't any shortcuts to rely on.

In the subsequent sections, we have enlisted the steps to be followed to purchase the most suitable online term plan:

1. Ascertain Long-Term Needs

Need analysis is probably the first and most important step towards purchasing a term insurance plan. Assessing requirements requires clarity of thought, proactive insights, and willingness to explore.

As a basic term plan signifies cash reserves for your family in your absence, you must factor in the probabilistic timeframe and start by ascertaining the insurance coverage. Once you can zero in on the financial ballpark that your family would benefit from after your demise at a particular age, you can select the term plan accordingly.

This is where an online term plan comes in handy as the websites enlist the policies based on the coverage, premium, and other factors. Besides, to ascertain your requirements, you must factor in the inflation, add in the liabilities, cut out liquid assets, add important financial events along the way, and even cut out the retirement corpus, if any.

2. Compare Plans

Now that you have the requirements chalked out and a handful of online term insurance plans in plain sight, you must start comparing extensively. As a rule of thumb, you must compare an online term plan to the other based on tenure, premium payment value, and payment structure.

If you want to purchase a plan online, compare diverse online term plan benefits to get hold of the best policy.  Moreover, you must realize that there are different types of online term plans to consider. For instance, you can consider a high premium online term plan that returns your premiums if you survive the selected policy tenure.

Other selections include term plans that factor in increasing monthly income to beef up the coverage. Nonetheless, the final selection should take your profession, expectancy, medical conditions, if any, and other relevant factors into account.

3. Determine Tenure

This is where things can get extremely tricky. If you want to go with a basic term plan, it is advisable to opt for a longer tenure. Then again, it would help if you ascertain your profession and risk factors before finalizing the online term plan's tenure.

4. Consider Short-Term Goals

As an individual with a fixed income, you must not overburden yourself by opting for an online term plan with higher premiums. Although a term plan focuses on making life after you easier for family, you should not compromise on the existing state of financial well-being to accommodate the uncertainties of the future. Moreover, you must also check for the tax benefits, if applicable to the concerned plan, to save money while paying income tax.

5. Compare Insurers

While it is good to compare one online term plan with a few others, you must also evaluate the concerned insurers' credibility and settlement ratio before taking the plunge. You must select the one that exhibits a high claim settlement percentage close to 99 percent.

6. Add Riders

Much like the intimidations of the pandemic, a majority of financial challenges show up, unannounced. Therefore, you must select an online term plan from the insurer, which allows you to pair riders, according to preferences.

Check with the insurer whether it can provide for covid-19 cover, critical illness premium waiver, accidental death cover, or the permanent disability rider.

If you want to get hold of the online term plan that is in your best interest, you must adhere to each of these steps. In case you still have doubts regarding the online term plan benefits, types of plans, premium payment options, and other aspects, you can always consider connecting with expert consultants.