Buying term policy online


I am planning to by a term policy online with a cover of 50 lakhs. When I compare the premiums of various policies of different companies, there is a huge variation. Is it ideal to buy a policy with lower premium? Or are there any other factors to make a decision? Or is it good to buy multiple policies with a total sum insured of 50 lakhs?




Although most insurance companies offer similar features, the claim experience varies, affecting the premium price. It is not surprising to find two similar term plans offered by two insurers at different prices. However, apart from the premium, here are some of the things you should consider before buying a term plan.

Claim Settlement Ratio: You must aim to buy a term plan from an insurer with a high claim settlement ratio. This ratio implies the percentage of claims honoured by the insurer. For example, if the insurer has honoured 90 claims out of 100 in a year, its CSR is 90%. The higher the ratio, the better for you.

Riders: These are added benefits to your term plan that improve the scope of the insurance coverage. For example, a term plan with an accidental death rider may pay Rs. 50 lakhs upon the death of the insured and an additional Rs. 25 lakhs if the death has been caused by an accident.

It is best not to buy multiple policies as this will affect you while making claims.

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BB Expert