Why To Compare a term plan?

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Why To Compare a term plan?
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• Usually insurance products and plans are
  considered to be complex. However, amongst all
  the insurance plans comparing term insurance is
  simplest. Essentially, term plans are simplified
  plain vanilla products offering protection to the
  family of the insured. This means it only
  requires a few inputs like your current age, the
  duration you need protection for and the amount,
  and some minor details, if these plans are so
  simple, since these plans are assumed to be
  simple, People tend to believe that annual
  premiums required to buy such a protection should
  be fairly close from most companies.

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• So in order to compare various insurance plans, a
  person can log onto one of the policy comparison
  websites like www.policyx.com, they provide with
  large number of options with premiums varying
  significantly for the same age, duration and sum
  assured. Premiums offered by some new companies
  can almost be 1/3rd of the highest premium.
  Obviously mortality rates would not vary across
  companies and their estimates should not be so
  different if any of them is doing serious
  business.
• While it is impossible to know the pricing
  algorithms of different companies, its usually
  suggested to follow 2 simple steps.
• 1. Shortlist large, well established players
  because you want these companies to still be in
  business 30 years down the line. Some of the
  large companies who have been around for a long
  term and have a substantial market share are LIC,
  HDFC Standard, ICICI Lombard, TATA AIA, Bajaj
  Allianz, Birla Sun life, Kotak Mahindra, etc.
  Since these companies belong to large business
  houses, we can assume that even if they realize
  that their pricing algorithms were incorrect and
  are flooded with large claims, they are more
  likely to continue with their businesses and not
  choose the bankruptcy path fingers crossed )

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• 2. Go for the lowest premium from the companies
  shortlisted. As mentioned earlier, term plan are
  fairly simple. They pay out sum insured in-case
  the insured dies during the term of the policy.
  Other features are not that substantial.so if you
  find a plan offering same cover for half the
  amount you should definitely go for it.
• Comparing term insurance can be much convenient
  with the right use of internet domains. Various
  comparison sites give a detailed analysis of any
  term plan.

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• This comparison is not only a knowledge but also
  helps in understanding the policy terms and
  conditions in detail. Rather than getting into
  the words of the insurer, its better one is well
  aware of policy market by themselves. Comparing
  term insurance in India is a practice which
  gained high popularity in modern times. Insurance
  itself is an idea which started gaining
  popularity pretty late. The latest trend has
  shown a drastic advance in comparison of
  insurance policies. People are more inclined
  towards learning more about insurance domain.
  This growth is followed by countless insurers
  which try to reach out to maximum audience.
• Invest in the right way with the option of
  insurance , its always better to know that your
  family would be secure after you.

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