6 Top online Term insurance plans in 2020 are like LIC’s e-Term Plan , Bajaj Allianz iSecure Plan, SBI Life- eShield Plan, Max Life Online Term Plan, ICICI Prudential iProtect Smart Plan, HDFC Click 2 Protect Plus, Kotak Mahindra

How Much Term Insurance Do You Need?

Term Insurance is a financial tool that has gained a lot of popularity recently. In order to meet the unforeseen circumstances, the breadwinner of the family buys a term insurance policy with the sole purpose of arranging financial support for his family in his absence.

Since it is an important financial tool, it is important for you to find out as to how much term insurance you need.

While buying too little life cover might result in lack of financial self-sustenance in case of the insured’s death, buying a term insurance that is too high can be a burden for you.

If the amount of term insurance cover is too low, the purpose of protecting your family in case of your demise, is defeated. On the other hand, if the amount of term insurance cover is too high, it might add an extra burden as you need to pay the premium for the life cover you have opted for.

When talking about how much term insurance you should buy, then the thumb rule is to a cover that is 10-12 times of your income.

However, there are certain other factors that you need to consider before deciding the sum assured.

TERM INSURANCE- BENEFITS, ELIGIBILITY CRITERIA, TYPES-PART1

How to calculate the sum assured?

The certain things you should consider for calculating the sum assured are as follows:

1. Expenses: Before opting for a term insurance plan, it is better you calculate your monthly expenses. Doing so will help you analyze how much amount will your family need to meet the monthly expenses in case something happens to you.

You can calculate your monthly expenses and multiply it with 12 to get your annual expenses.

Apart from the routine expenses, you should also take into account any loan or any future expense like the higher education or marriage of your children.

• Annual Income: It is always advised that the amount of sum assured should be at least 10 times of your annual income. This is suggested so that the amount received from your term insurance policy can act as a replacement of your income for your family after your demise.
• Liabilities and Assets: Keep in mind the liabilities and assets that you have when you are calculating the optimum amount of sum assured required by you for your family.
• Investments and savings: To calculate the sum assured of your term insurance policy take your savings and investments into consideration. This will give you a better clarity as to what amount of life cover you need for the financial security of your family.

How to purchase term insurance online?

In order to buy term insurance online, you can follow the below mentioned steps.

• First of all, visit the official website of the insurer.
• Click on the tab/menu and look for online term insurance plans.
• If there are more than one policies, then select the policy that you are interested in buying.
• Enter the required details like name, contact number, policy tenure, sum assured, premium to be paid, etc.
• Read the terms and conditions well and if you are satisfied with them proceed to pay the premium.
• For paying the premium, select the mode of payment.
• Once you make the payment you will receive an acknowledgement if your payment is successful.
• After a few days, your insurer will reach you back and let you know whether your insurance has been approved or not.
• In case the policy has been approved, you will receive a soft copy of your documents of the policy.

Which are the top online term insurance plans?

For your convenience, here is a list of top 7 online term insurance plans, which you can consider buying in case you are planning to but a term insurance for your family.

Plan Name	Entry Age	Maturity Age	Tenure	Sum Assured (minimum)
Bajaj Allianz iSecure Plan	18-60 years	70 years	10,15,20, 25, or 30	Rs.2.5 lakh
LIC’s e-Term Plan	18-60 years	75 years	10-35 years	Rs. 25 Lakh
SBI Life- eShield Plan	18-65 years	75 years	5 to 30 years	Rs. 35 Lakh
Max Life Online Term Plan	18-60 years	85 years	10-50 years	Rs. 25 lakh
ICICI Prudential iProtect Smart Plan	18-65 years	75 years	Minimum of 5 years	Subject to minimum premium
HDFC Click 2 Protect Plus	18-65 years	40 years	10-40 years	Rs. 25 lakh
Kotak Mahindra	18-65 years	75 years	10-40 years	Rs. 25 lakh

Conclusion

Term insurance is a financial tool that you can buy to provide the required financial security to your family after your death. It has great benefits and is quite convenient for you to purchase. However, in order to get the maximum benefit of your term insurance plan, make sure that you calculate the amount of sum assured beforehand so that your family is secured in future.

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