Is the Cheapest Term Insurance the best?

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Online Term Insurance Plans in India
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Is the Cheapest Term Insurance the best? 
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• Many life insurance companies have hopped onto
  the online term insurance bandwagon. Since this
  is the simplest form of insurance on offer and a
  direct comparison of premium is possible. Couple
  of insurers has even entered a slugfest on who
  offers the cheapest term insurance policy.
• These insurance covers that offer a pre-set death
  benefit are cheaper than the regular term
  insurance plans purchased through insurance
  agents and brokers. The benefit of online term
  plans is that one does away with the insurance
  middlemen and thus saves up on the commission
  paid to the agent out of your premium paid.
  Online term plans help you save 1/3 to ½ the
  premium paid for offline plans.
• But then is premium the only consideration to opt
  for a term insurance plan, where the heir of the
  insured would get the sum assured upon the death
  of the policyholder. It has been observed that
  the chances of claims being rejected are higher
  when the cost of life insurance isn't
  commensurate with the actual risk involved.

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Few other essential factors need to be
considered. Here are five parameters that you
should assess apart from premium to zero down on
an online term insurance plan.Maturity age
offered Insurance companies offer a maximum
maturity age between 65-80 years of age. Higher
the maturity age the better for you as higher the
age more the chances of death and better the
utilization of a term plan. LIC and SBI Life,
which are public sector insurance companies,
offer a 70 year maturity age, while HDFC Life
offers a 65 year maturity age.Higher policy
term Term insurance policy term used to be 25
years earlier. The scene is now changing.
Insurers offer a term of 35-52 years as well. The
higher the term, the better for you as you need
not purchase a second term cover at higher age if
you exhaust the term of the first one purchased
early in life. HDFC Life, Bajaj Allianz, SBI Life
have a term of 30 years.
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• Actual premium The premium quoted online or
  through charts is just an indicative premium and
  your actual cost may escalate once your medical
  tests reveal your health condition. A smoker
  would have to cough up 25-30 more. So, find your
  actual premium before selecting options. 
• Claims rejection ratio This is an important
  factor to be examined before taking the online
  term plan. An insurer may be offering the
  cheapest Online Term Insurance Plans in India but
  if it rejects 40 of the claims then your money
  paid over the years may be down the drain.
• Ease of claim handling Your heir should not be
  left running from pillar to post to make the
  insurance claim. Also, several insurers have a
  long list of pending claims. So, study the past
  record of the insurer before taking up the term
  plan. For instance, DLF Pramerica has a shocking
  53.96 of its claims pending, while HDFC Life has
  only a mere 1.29 claims pending. 
• Source http//economictimes.indiatimes.com/is-th
  e-cheapest-term-insurance-the-best/articleshow/472
  32489.cms

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surance/isecure-insurance-plan.jsp
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