How to Compare Online Term Insurance?


We love to shop online! We have numerous shopping apps on our smart phones which help us have anything, from grocery to apparel to furniture to banking with just a few clicks. Moreover, we get to browse through all the options even without moving physically before making a choice. Then why not buy insurance online? Majority of the insurance companies have begun selling their insurance plans online. Be it vehicle insurance or a health insurance, you will find all of them online.

How to compare online term insurance:

One of the simplest ways in use an online term insurance calculator or refer to various aggregator websites which source the information from various insurer’s websites and offers you a platform to get yourself a quote and calculate the premium amount.

An online term insurance calculator is an extremely robust and dynamic tool that can greatly assist you while buying an insurance plan online. Since you are already avoiding any interference and influence of an insurance agent, you would always want a virtual assistant that would provide you with all the help you need while making the purchase without any influence. An online term insurance calculator prompts you to feed in several personal details and customisation options based on your lifestyle and preferences before displaying the best quote from the particular insurer.

An aggregator website does an even more additional task. It sources information from various insurers and helps you make an informed decision from all the available options out there!

However, what are the factors you would need to consider while making a comparison between various online term insurance plans? Let’s find out.

Comparison Grounds:

  1. Claim Settlement Ratio: A claim settlement ratio indicates the number of claims settled by the insurer against number of claims made. It explains the responsiveness of the insurer towards claims made. A 100% Claim Settlement Ratio is an ideal scenario and is unlikely to exist since there would always be some staged claims made towards the insurer. The higher the Claim Settlement Ratio, the better is the insurer in terms of settlement of claims. Claim settlement ratio of various insurers is published by the Insurance Regulatory and Development Authority of India (IRDAI).
  2. Persistency Ratio: A persistency ratio explains how persistent were the customers in renewing their term insurance plans with the particular insurer. A higher persistency ratio is thus indicative of higher customer satisfaction with the insurer and directly ties with up better reputation of the insurer.
  3. Solvency Ratio: Solvency ratio tells you the ability of the insurance company to pay out the claims without or before going bankrupt in extreme situations. This directly translates to how easily your claim be settled. Higher the solvency ratio means the higher chance of your claim being settled. However, do your research and look out for additional information on an insurer, for example, the financials of the insurer. Since Solvency ratios are displayed higher to attract customers while the financials speak a completely different story altogether.
  4. Commission Expense Ratio: This ratio indicates the total money that you would be paying out along with your premiums as commission. This is a critical factor to consider since this directly affects the premiums that you would pay towards your term insurance plan.
  5. Riders: Various insurance companies offer various riders. Browse through all available options to select the one which offers the riders that is best suited to your needs.
  6. Convenience: Since you are opting for an online term insurance plan, why rely on physical grievance redressal process? Choose an insurer that offers online customer support thus making your life simpler.

It is always good to remember while buying an online term insurance plan, that the cheapest quote is not the best quote. A term insurance plan is very different from a regular life insurance plan. So, consider all your liabilities and preferences and do extensive homework in comparing the various online term insurance plans available before making your choice.

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