You can help your family even in your absence. Find out how!

Just like food, clothing and shelter, life insurance is evolving to join the list of necessities of life. Understanding that the needs and buying capacity of every insured person can be different, most insurance providers offer different types of life coverages to individuals. One of the most popular risk-hedging schemes is a term life insurance.

Term life insurance has been gaining popularity due to its low premium. One of the reasons that the term plans are inexpensive is because provides the plan charges you only for life cover. Unlike ULIPs, there is no investment factor involved which is why cheaper costs are feasible. But, only because the premiums are low enough to suit your pockets, doesn’t mean that you should blindly go for it. Before buying a online term plan, there are a couple of things to know about the eligibility criteria and overall functioning:

1. For individuals who are looking for capital appreciation, term plan is not for you. A term plan is ideal for you if your goal from the scheme is to financially cover your dependents during the rough times or in your absence.

2. Once you have decided it is the right plan for you, next is selecting the provider and scheme. Different providers have different features and entry-exit age. For instance, iSelect+ term plan from Canara HSBC Oriental Bank Of Commerce Life Insurance offers whole life cover & return of premium.

3. One of the core eligibility tests for a term plan is medical tests. An insurer will ask you to undergo medical tests to analyze your health conditions. Better your health, lower will be your premium cost.

4. Income, qualification, occupation are other determinants of the premium cost and life coverage of a term plan.

5. The policy duration of plan differs with the entry age and span chosen by the insurer.

6. Very few plans offer maturity benefit on term life insurance. Most term plans only come with a death benefit. Before you buy a plan, know what you are signing up for.

7. It is recommended to buy online term plan. This is because as a policy holder, you will get access to more information and can easily pit myriad plans against each other to select the one that is best suited for your monetary needs.

Disclaimer: No Deccan Chronicle Group journalist is involved in creating this content. The Group also takes no responsibility for the content.