BRAND POST

Top 5 Things to Check Before Buying Term Insurance Online in 2025

Written by Brand Post | Updated: 26 August 2025 20:19 IST

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Over the past decade, the way people buy insurance has changed dramatically. Gone are the days of long queues at agents' offices and piles of paperwork. Today, most people purchase term insurance online, often within minutes, comparing policies at the click of a button. But convenience brings its own challenges: rushing through an online purchase without careful consideration can lead to gaps in coverage or missed opportunities.

If you are planning to buy a term policy in 2025, understanding what to check before clicking “buy” can save you both money and stress. This article walks you through five essential factors to evaluate when purchasing term insurance online, why each is important, and how overlooking them could affect your financial security.

1. Coverage Amount: Protect Your Family Adequately

One of the most critical steps when buying term insurance is determining the right coverage amount. Experts recommend a cover that is 15–20 times your annual income. This ensures that your family can maintain their lifestyle, pay off debts, and meet future financial goals if something happens to you.

What happens if you underestimate?

A lower coverage amount could leave your family struggling financially in the long run. On the other hand, choosing excessively high coverage might inflate your premium unnecessarily. Many online platforms, including ACKO Term Insurance, provide calculators that help estimate coverage based on income, expenses, and financial goals. While convenient, these tools should be used as a guide, and you should adjust the numbers to your unique circumstances.

2. Premium Affordability: Balance Cost and Commitment

While term insurance is generally more affordable than other life insurance products, premiums can vary significantly depending on age, health, coverage amount, and policy term. Before finalising an online purchase, check if the premium fits comfortably into your budget. A policy may seem attractive, but if you cannot maintain regular payments, your coverage could lapse, leaving you without protection when it's needed most.

What happens if you overcommit?

Skipping this check may force you to either cancel the policy later or compromise other financial priorities. Online calculators and comparison platforms make it easy to compare monthly or annual premiums across insurers, helping you strike the right balance between cost and adequate protection.

3. Policy Features and Add-Ons: Understand What You're Buying

Not all term policies are created equal. Some come with additional riders or features that can enhance coverage, while others remain basic. Common riders include accidental death benefit, critical illness cover, and disability income cover in case of disability. Before purchasing online, read the policy document carefully. Understand what is included, what is optional, and whether these features align with your needs.

Why does it matter?

Choosing the wrong policy or ignoring optional add-ons can mean paying more without meaningful benefits or missing critical protections. Although online insurers often highlight these features upfront, it is still your responsibility to evaluate them in detail.

4. Claim Settlement Track Record: Ensure Reliability

A term insurance policy is only as good as the insurer's ability to honour claims. Online reviews, industry reports, and official claim settlement ratios provide valuable insight into how reliably a company pays out.

What happens if you ignore this?

You could end up with a policy that pays out late or denies claims, defeating the purpose of buying insurance in the first place. While online platforms make policy comparison easy, always verify the insurer's reputation and history. Checking the claim settlement ratio and reading customer experiences can help you make an informed choice and avoid future headaches.

5. Tax Benefits and Other Financial Considerations

A term policy is not just protection; it can also bring financial advantages. For instance, premiums paid under a term insurance plan are eligible for term life insurance tax benefits under Section 80C of the Income Tax Act, and the death benefit is generally tax-free under Section 10(10D).

Understanding these benefits can make a significant difference in your overall financial planning. Before buying online, ensure you know how your policy fits into your tax planning and other investment strategies.

What happens if you overlook this?

Missing out on available tax benefits means leaving money on the table and reducing the efficiency of your financial plan.

Conclusion: Make Your Online Purchase with Confidence

Buying term insurance online is faster and more convenient than ever, but it comes with the responsibility of careful evaluation. Before completing your purchase, ask yourself:

● Is my coverage amount sufficient to protect my family?

● Can I afford the premium without straining my budget?

● Do I fully understand the policy features and optional riders?

● Is the insurer reliable and known for smooth claim settlements?

● Am I aware of the tax benefits and financial implications?

Addressing these points ensures that your online purchase is not just convenient but also secure and meaningful. Platforms like ACKO Term Insurance have made the process easier, but the ultimate responsibility lies with you. Taking a few extra minutes to check these factors can make a lifetime of difference for your family's financial security.

Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Gadgets360. Gadgets360 does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Gadgets360 shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same.

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