Whether you purchase term insurance online or through an insurance broker, the product construction will not change. In actuality, the majority of internet marketplaces are also insurance brokers, and vice versa. Therefore, there is little room for product and process diversification. Options, services, and prices are where the main disparities lie.
You should first speak with a company that offers several solutions impartially and without favouring any particular insurer. You might effectively compare things because of this. In order to ensure adequate underwriting, term insurance involves coordination with the insurer at the time the policy is purchased.
The amount of back and forth with the insurer is typically considerable if the policyholder has a problematic medical history. Make sure your point of contact stays the same and is knowledgeable about the underwriting standards throughout the process. Third, you might take into account the channel that offers a lesser premium if the price difference is greater than 5 to 7%. You might also think about who your nominee might feel more at ease dealing with during the claim process.
You should purchase term insurance to cover your active earning years, or up to retirement. The retirement age for professionals who are paid a salary might range from 58 to 65 years old. It is advised to purchase coverage worth ten times your yearly income.
The coverage up to age 62 is adequate. By then, the majority of people have retired, therefore there is no active income to replace. Furthermore, during that time of life, a person would have finished paying off their big financial debts and commitments, such as a mortgage, children’s higher education, etc. It is likely that by age 62 you would have amassed a sizable enough retirement fund to produce a passive income. Therefore, further coverage is not necessary.
The extent of your existing coverage, nevertheless, is modest. As a general guideline, you should have ten times your annual income in coverage. You should therefore have a cover of at least Rs. 1.8 crore. Increase your term insurance sum assured, if possible.