Things to remember before you buy Term Insurance
                     Things to remember before you 
buy Term Insurance
BimaKaro.in
online term insurance plan.
Term insurance is a type of a life insurance policy that promises to pay a pre-decided 
amount as financial protection for your family. In case any unfortunate event happens 
to you within the policy term. Let us understand this with an example: Vimal had 
purchased a term insurance plan for a sum assured of Rs. 1 crore. He is married and 
has two kids. While the policy is in force till his age of 60 years, in case something 
untoward such as death, terminal illness or disability happens to Vimal, within this 
period, the insurance provider will pay Vimal’s family a sum of Rs.1 crore.
Unlike investment products, when you buy term insurance, you are purchasing a pure protection 
plan. Though it does not offer any returns on the premiums paid, you can be assured of securing 
your family’s financial future after your demise at the end of the policy tenure.
If you are looking to buy term insurance, do remember that there are a wide range of policies 
available in the market, issued by different insurance companies. With plans available across 
online and offline modes, choosing the right policy from a massive list of options is undoubtedly a 
difficult task.
select the right policy
1) Assess your requirements: Before you buy term insurance, be clear on the purpose of why you buy term insurance. To do 
this, you need to assess your current situation and think what your family will require in future to sustain the same lifestyle 
while pursuing their duties typically. By doing an assessment and by answering these simple questions:
The total amount needed per month to run the family
How many earning members are in the family, or are there any other source of income?
Number of members dependent on you
Are there any liabilities and unpaid loans?
Once you have the above details, it is the first step in deciding the right term insurance suiting your needs. It will also be 
helpful if you consult your spouse and kids to understand their life goals and ambitions that would help you, even more, align 
with your purchase decision.
 
Best Term Plan
2) What are your monthly expenses? Once you decide to buy term insurance, you need to find the right amount called a 
premium that is calculated based on the sum assured, policy term, additional features taken etc. It should be paid 
continuously every year throughout the policy term. Therefore, make sure to opt for a coverage that not only covers your 
family but also fits your pocket.
Going for a high premium and availing a term plan for a low sum assured are both not going to serve any purpose of 
buying a term insurance policy. Be always realistic in your expectations and stay within your means to avoid 
disappointments in future.
3) Understand the features: Never buy term insurance blindly that was referred by your friend or relatives. Since there is 
no possibility of modifying details in the insurance policy and insurance providers do not allow it after it is issued make 
sure to choose the right options at the inception of the policy to avoid complications in the future by double checking all 
the features provided. Read through all the details, terms and conditions, rules, inclusions and exclusions etc., mentioned 
in the policy documents and then finally sign on the dotted line, only after getting yourself clarified on all the possible 
doubts.
Online term Insurance Plan
4) Rider Protection: After you decide to buy a term insurance plan, it is necessary to add as much protection as possible. You 
can do this to the base policy with the addition of riders at a very affordable cost. Riders are nothing but add-on covers that 
you may add to the online term insurance plan to extend the policy’s coverage with more features. Although these add-ons 
come at an extra cost, they are in fact worth it, if they satisfy your requirements.
Some commonly preferred riders are Accidental Death Cover, Accidental Disability Cover, Premium Waiver Cover, Critical 
Illness Cover, Terminal Illness Cover etc.
5) Income Tax Benefits: The premiums that you pay for term insurance policies are eligible for tax deductions and exemptions 
under section 80C and 10(10D) of the Income Tax Act, 1961. This is a significant benefit, especially if you wish to save on your 
tax outgo every year at the time of income tax filing.
The significant advantage of having such exemptions is experienced during the time of benefit payout. Your family doesn’t 
have to pay tax on the benefit amount, since they fall under the exempt list.
Buy Term Insurance
6) Claim settlement ratio: This is a parameter that most don’t pay attention to when deciding to buy term insurance, but 
this ratio gives an overview of the insurance company’s service record. The Claim Settlement Ratio is the total percentage of 
claims settled by the insurer against the policyholder’s claim requests during the financial year. While a low CSR means the 
insurance provider has not maintained a good record of settling the claims, a high settlement ratio implies the record is 
quite good. Experts recommend buying a term insurance policy from a provider who possesses a high CSR.
Now having understood on how to select the best term insurance plan, it is time for you to buy from an online companion 
website, like Bimakaro.in. Internet penetration and digital adoption have made it easy to buy term insurance through online 
mode since the process is highly transparent and offers comfort options sitting in the home, allowing you to compare 
various insurance providers and their plans.
Bimakaro 
Bimakaro.in offers a simplified platform to select insurance policies based on your life stage (single, married, with kids etc). 
They also have facilities to compare the pricing, features and benefits of different plans in a single screen, thereby enabling 
you to make an informed buying decision.