Want To Buy An Insurance Term Plan? Look At The Features Not Premium

What's The Benefit Of Life Insurance?

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If you want life insurance then don’t look beyond a term plan: it’s the cheapest and the smartest way to insure your life with the right plan which you can buy online.

The online platform making term insurance popular, and insurers are coming up with various innovations to make it more attractive.

Innovations allow you to modify your insurance plan. For instance, if you think your dependents will not be able to use the lump sum well, you can break it into smaller amounts to ensure periodic income for them. You could also choose to pay a part of the sum assured as a lump sum and pay periodic income with the rest. Offering customisation options, you should also look at the features of a term plan and not just its premium. Aviva Life Insurance Co. India Ltd now added the Aviva i-Term Smart plan to the stable of online term plans.

What's The Online Term Plan?

It’s a plain vanilla online term plan. The policy will calculate the premium depending on the sum assured and factors such as your age and term.

Like other term plans, this one allows you to pay annually, semi-annually and monthly. On the death of the policyholder during the term, the nominee gets the sum assured and the plan terminates. There are no maturity benefits and if you choose to surrender, you don’t get any surrender value either.

The plan comes with the option of a rider, an add-on insurance to a base policy. You can opt for a critical illness and disability rider, which covers 16 critical illnesses and total permanent disability. The sum assured under the rider can’t exceed the base sum assured. The premiums are subject to revision every five years. The premiums for the base term plan will remain fixed though.

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This policy can increase the sum assured on certain events like marriage, childbirth, or taking a home loan in the fifth year of the term. However, you can do this only once during the term and not in the last 10 years of the term. The sum assured can go up only up to Rs 25 lakh and the policyholder should be less than 45 years of age when doing it. While the insurer will bump up the sum assured without any medical examination. This is a new premium that will apply.