Compare Insurance Plans Online with Okbima

Compare Insurance Plans Online

It's very important to understand the importance of having insurance, especially life insurance, as it pays out a certain amount after a specific policy period or on the death of the primary policyholder. Almost every working employee or self-employed individual has life insurance to secure their future and ensure they will have a lumpsum source of income after 20 or more years.

Life insurance is also considered a total coverage of several health benefits, like critical illness, terminal illness, physical disability, permanent disability, and so on. So, if you want to buy an insurance policy, knowing more about various schemes and products, insurers, and the features of different life insurance is crucial. Keeping this in mind, we have further illustrated how you can easily compare different insurance plans and make a well-informed decision.

What are some of the fundamental terminologies associated with insurance comparison?

So, first of all, let's understand a couple of terminologies that will help you know more about insurance.

1. Product: every insurer offers a variety of products under different kinds of insurance plans. When you want to compare insurance policies in India, you should understand the features of every product.

2. Scheme: Ideally, schemes are based on groups or organizations where several members or individuals are given a certain policy under one scheme.

3. Sum assured: the sum assured is the initial principal amount of the policy. Every product has a certain minimal and maximum sum assured range that you must keep in mind. For example, if product a has a minimum sum assured of INR 20,000, you cannot make a policy with less than this particular amount.

4. Policyholder: there are two types of policyholders. When you want to compare online term insurance plans, knowing the differences between a single and joint life policyholder is important. If any insurance policy has only one member as the primary policyholder, it is a single life insurance policy. But if the policy has two individuals as the primary policyholders, it will be a joint life policy.

5. Claims: insurance policies are claimable. It means that if any term or condition is met, like hospitalization charges, partial disability, terminal illness of the primary policyholder, or anything like this, the individual can raise a claim against that insurance policy. The claimable amount will depend on the total sum assured of the benefit, the sub-benefits, and the connection between the divided and parent benefits.

6. Maturity amount: this amount is the one you receive on the expiry of the policy. When you compare insurance plans online, it's important you check which one will offer you the maximum maturity amount, given all other conditions are the same. If any claim is made in between, the maturity amount will decrease accordingly.

7. Policy lapse: if you cannot pay the premium for three consecutive months, the policy will be in a lapsed state. It means that no operation will be done on such a policy as long as the status remains the same.

8. Policy reinstatement: when the policyholder pays all the due premiums for a lapsed policy, the insurer will run a reinstatement process through which the policy will again become active and continue to operate expectedly.

Now that we have discussed some of the major terms associated with different types of insurance plans, it will be easier for you to compare insurance policies without any hassle.

How to compare different insurance plans online?

The first and foremost thing we will learn here is the process of insurance comparison India. Until then, unless you are aware of this entire process or the factors to be considered, you won't be able to decide appropriately. This can affect the overall premium you have to pay on a certain frequency and reduce the expected maturity amount you will receive once the policy expires.

In the below section, we have discussed some factors that will help you get fruitful results when comparing online term insurance plans in India.

1. Policy term 

The policy term is one of the most important factors you must consider to compare insurance plans without any hassle. You can consider the total number of years for the policy to remain active. Ideally, life insurances have a policy term till the maximum age, i.e., 100 years. But if you choose income protection insurance, the policy term will vary, like for 5 years, 2 years, and even 65 years of the policyholder. 

2. Insurance type

The next thing you need to consider when you compare insurance plans is their type. Generally, these are divided into life insurance, health insurance, income protection insurance, unit-linked schemes, and annuity or retirement insurance. The products and benefits will vary according to the insurance types. So, have a detailed discussion with your insurer to have clarity before proceeding any further. 

3. Premiums to be paid

One of the most important factors in comparing insurance plans correctly is the premium payable. The amount you have to pay to the insurer based on a certain frequency can be monthly, quarterly, half-yearly, or annually. The premium depends on many factors, like the sum assured of the policy, the product is chosen, the total policy term, the benefit, the policyholder's age, smoker status, and occupation. Ideally, premiums will vary from one insurer to another or from one policy type to another based on all the abovementioned factors. It would be best to choose an insurance plan where the premium paying frequency can be converted from one type to another.

4. Applicable taxes and other charges

When taxation is considered, you have to compare insurance policies online in two ways. First, super policies allow you to get tax benefits according to the 80C and 80D sections of the Indian Income Tax Act. However, there are certain insurance policies where you have to pay an additional tax and other charges apart from the original premium. So, the gross premium will be the actual premium against that particular policy, while the net premium will include the tax to be paid and other charges as per the government.

5. Allowable benefits and features

You also must understand the different benefits and their allowable features for different products. It will help you compare insurance policy based on the benefits you want, their minimum and maximum sum assured, waiting and benefit period, and many more. Each policy can have multiple benefits of different types or the same type. Also, know more about the features for different benefits to enjoy the flexibility and increment in the sum assured. 

6. Maturity amount

One of the major factors to consider when you want to succeed in insurance plan compare task is the maturity amount. It will vary from one product type to another, the benefit chosen, and the premiums to be paid. Choose an insurance plan with a higher maturity amount so you can easily grow your money and even get a higher claimable amount. 

7. Benefit period extension

When you choose an income protection cover in the insurance policy, check of the insurer is giving you the advantage of extending the benefit period or not. Ideally, you can raise a claim for the income protection benefit till the expiry date. So, if you want the cover for years, consult with the insurer to extend the benefit expiry date by a specific number of days. 

8. Claims applicable

When you compare policy online, you should also check the claims allowable on each benefit associated with the policy. For example, if you get life insurance, you can raise death, health, and even disability claims. Similarly, for an income protection cover, you can raise an income claim through which you will get a lump sum amount or monthly payments for a certain time period in an installment form. 

9. Insurer

You must consider a proper insurer while you compare term insurance plans online. First, the insurer should be experienced and licensed to handle the insurance claims. Apart from this, the company should have a higher claim settlement ratio. It means the insurer must have settled a maximum number of client claims. The higher the settlement ratio, the better your chances to raise and settle a claim will be. In addition, check whether the insurer is open to different terms and negotiations.

10. Add-on covers and rider benefits

Last, you must compare life insurance plans online or any other insurance based on the allowable rider benefits and the sub-benefit of each main benefit. The total maturity amount will also increase when you choose riders and other add-on benefits. 

How can Okbima help with comparing insurance plans online?

One of the best companies that will help you in the process of insurance compare online is Okbima. After completing a decade in the market, professionals know what insurance plans will suit their clients. Apart from this, the company allows negotiations to offer its clients more benefits and flexibility, whether changing the premium frequency mid-way or raising multiple claims against a single policy.

Conclusion

In this article, we have walked you through some of the major factors to consider when you work on an insurance comparison site and try to get more details about different plans. We have also discussed some major terminologies to consider while choosing various insurance plans.