With the rise in the number of road accidents or death due to a critical illness, term insurance plans are a must if you have dependents. Online insurance is growing in popularity, due to ease of access, user-friendly nature and transparency. The article tries to discuss the benefits of availing term insurance plans online.
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Cost: The online method of availing term insurance is far easier and simpler than offline term insurance. Insurers offer term insurance at cheaper rates, compared to the offline term insurance plans.
This is because online term insurance plans have lower operational costs as compared to offline insurance plans. There are no intermediaries involved and the entire process is online. You can avail the plan, directly from the insurer. The operational cost includes insurance agent commission, the operational cost of branches, service and maintenance cost, cost of electricity/water and so on. Online policies are affordable and have higher insurance coverage.
Sum Assured: The sum assured is higher in case of online term insurance plans primarily due to the overall cost involved. The sum assured is higher as the insurance companies are able to cut down operational costs. You can avail extensive insurance coverage at budget-friendly premiums. Nowadays, many insurers are advertising term life policies of a crore; at affordable premiums. However, the policyholder must go through a medical test to get sum assured of a higher amount.
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Premiums: The premium for online term insurance plans is comparatively lower vis-a-vis offline term insurance plans. The online plans offer higher insurance cover at affordable premiums.
Comparisons: Insurers allow customers to compare term insurance plans, online. You can choose the right type of term plan by comparing plans and evaluating features and benefits. A buyer can also access customer reviews that help him understand the product and the insurer. A buyer can understand the merits and demerits of a term life plan and choose insurance according to their requirements.
Transparency: Insurers offer all details on the term life policies they sell. You can easily access information on the term life insurance and make the purchase. Everything on the policy in question like features, tenure, riders, inclusions and exclusions are offered in detail. The insurers promise complete transparency to prospective buyer’s vis-à-vis online term plans. This helps make an informed decision.
Ease of Access: One of the main features of online term plans are the ease of access. Buying a term plan offline means, you don’t have access to policy details as easily as online plans. In case of online term insurance plans, the buyer can get the policy details whenever required.
Customer Empowerment: As previously mentioned, the insurance companies offer every detail regarding term insurance online. You are empowered as you know all the terms and conditions. You don’t have to deal with nagging insurance agents who try to pitch their products and pocket commissions.
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