Term insurance plans have gained popularity due to their pocket-friendly premiums and substantial coverage (not to mention the scope for customisation and straightforward offerings). However, this perk doesn't come cheap (think eligibility-wise). Since the stakes are so high, term insurance providers have extremely rigid eligibility criteria that include a complete check on one’s current employment and nature of occupation. This helps them evaluate the risks of payout involved and decide accordingly if they want to bear that risk or not.
Unfortunately, navy personnel and individuals deployed in the army fall under the category of potential policyholders with risky occupations. This makes it a bit difficult for merchant navy personnel to get a term insurance plan. Additionally, considering the stringent rules and regulations of the insurance providers, it becomes difficult for merchant navy personnel to apply for a term insurance plan since they stay on land only for a few months.
However, as merchant navy personnel, you can’t ignore the associated risks and hence the requirement for the top term insurance plans. All that you need to do is acknowledge the term insurance application process, best term insurance plans for the merchant navy, hurdles involved in the entire procedure, and the factors that influence a term insurance plan’s availability for a merchant navy personnel.
Heads Up: It takes an average person up to 5 hours to read & analyze a policy, and 10 hours or more to compare different plans and make a decision.
This is why we propose a better alternative - taking a 30-minute FREE consultation with Ditto’s certified advisors. We have a spam-free guarantee, and we’ll never push you to buy a plan. Don’t delay this - we have limited slots every day, so book a quick call here before they run out.
What are the Best Term Insurance Policies for Merchant Navy Personnel in India?
What are the Issues In Purchasing Term Insurance Plans As A Merchant Navy?
- Insurers demand consistency in income amount: Term insurance providers usually require applicants to show a guaranteed sustainable income. This can be tricky for Merchant Navy personnel since their income often varies based on contract durations and available assignments.
- Often, insurers may offer policies based solely on employment track record: Insurance providers often base term plans solely on the applicant's current contract, overlooking past employment history or Merchant Navy experience. This approach can be a major hurdle for those who are new to the Merchant Navy or have gaps between contracts.
- Merchant Navy personnel need to be on the land when applying for a term insurance plan: Merchant Navy professionals often face a major hurdle when applying for term insurance: they need to be on land. This requirement is due to the necessity of undergoing a comprehensive medical checkup, which is a mandatory part of the application process. Considering the high-risk nature of their job, thorough medical evaluations are essential. However, accessing these checkups while at sea, far from medical facilities, poses a significant challenge.
How to Purchase A Term Insurance Plan for Merchant Navy Personnel?
Being employed as a merchant navy personnel is an opportunity that many have taken up over the years. However, the profession requires an individual to be away for a majority of the time on the sea and, hence, at times, may seem to pose a significant hurdle for the individual and their loved ones to have a regular lifestyle. Subsequently, even the most common tasks, like applying for a term insurance policy, require much pre-planning so that as soon as you complete one contract and touch shore, you have to apply for a plan.
On the other hand, a term insurance policy is crafted to act as your income replacement in the event of your unfortunate absence and ensure that your loved ones continue to achieve all their future goals without any financial hiccups. This financial protection tool is a long-term commitment between the insured and the insurer. Moreover, as a merchant navy personnel, once you have purchased a term insurance plan, you don’t really have a lot of room (in terms of time and also because term insurance providers don’t allow the introduction of a lot of changes to the plan once it has been purchased), thus requiring you to be more particular about your policy and ensuring that it’s well-suited to your financial requirements/goals.
However, here’s the constant concern that may seem to pose a hurdle when purchasing term insurance for merchant navy personnel - within the few months that you spend on land, you have to research competitors, select a policy, complete the application process, submit all the required documents, and complete the insurer-suggested medical tests.
This seems like a lot to do; however, if you have an insurance expert by your side to aid you with all the steps, the hurdles will become easy to overcome. Here’s a quick look at how the application process for term insurance for merchant navy personnel goes down -
(Before the application process)
STEP 1: Research the most suitable term insurance provider and coverage requirement
Since term insurance policies are meant to be long-term commitments and involve a substantial amount (since it’s supposed to act as your income replacement), you need a credible term insurance provider with an excellent track record across metrics like claim settlement ratio, amount settlement ratio, complaint volume, etc.
You also need to calculate the ideal cover amount using a free tool. This would help you get access to a customised cover amount that best suits your and your family’s future financial goals by taking into account your existing financial bandwidth, age, number of dependents, income slab, occupational risk factor, etc.
STEP 2: Compare policies and reach out to experts to finalise a term insurance plan
Use a free tool to compare your term insurance plans and check if the following features and riders are available before you finalise the plan -
- Waiver of Premium
- Return of Premiums
- Terminal illness
- Accidental Death Benefit Rider
- Life Stage Option
- Total and Permanent Disability Rider
- Critical Illness Rider
STEP 3: Collect all documentation regarding your upcoming contract
As previously stated, term insurers are pretty stringent about their eligibility criteria. Hence, they will require you to submit a set of documents after you have applied for the term insurance policy. However, considering the time crunch you may face due to your profession, you may also need the insurance advisor in discussion to provide you with an estimated list. You can keep these documents ready to be submitted when the insurer asks for them.
However, one sure-shot document that all insurers require is the upcoming contract. Kindly reach out to your employer and make sure that you have this document ready when you plan to apply for a term insurance plan.
(The application process)
- Apply for the pre-decided term insurance policy
- Complete the questionnaire that includes your occupation risk evaluation
- Expedite your medical tests while you are still on the land
- Submit all the required documents
- Ensure that you have an active term insurance policy before you board the ship.
Why Talk to Ditto for Your Health Insurance?
At Ditto, we’ve assisted over 3,00,000 customers with choosing the right insurance policy. Why customers like Srinivas below love us:
✅No-Spam & No Salesmen
✅Rated 4.9/5 on Google Reviews by 5,000+ happy customers
✅Backed by Zerodha
✅100% Free Consultation
You can book a FREE consultation. Slots are running out, so make sure you book a call now!
What are the Factors that Influence A Term Insurance Plan for Merchant Navy Personnel?
- Risk Evaluation Based on Your Role: Insurance providers carefully consider your position and responsibilities within the Merchant Navy, assessing the risks specific to your role.
- Task Analysis: They examine the specific duties and tasks you perform on board, evaluating the physical demands and potential hazards associated with your responsibilities.
- Medical Considerations: Your overall health and any pre-existing conditions are evaluated. Providers consider how your job might affect your health and may require additional medical exams or disclosures.
- Assignments to Conflict Areas: If you’ve been deployed to conflict-prone regions, this is taken into account. Insurance companies assess the risks and security concerns which can influence your policy's terms and coverage.
- Sea Time Evaluation: The time you spend at sea is a significant factor. Providers look at the duration of your voyages and how it might impact your health and well-being.
