Term insurance policies are basically high-cover and low-premium plans. As the entire premium is used for risk cover, the term insurance policyholder does not get anything in return if he/she survives the policy term. Beneficiaries will get the sum assured, if the policyholder dies during the policy term. Many people prefer to buy term insurance to keep their families financially secure. How to buy a term insurance plan? Can I buy it online?
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See Also: Best Term Insurance Plans In India
Benefits of Buying Term Insurance Online
What are the benefits of buying term insurance online? Let’s have a discussion:
- Save Money: When you avail term insurance online, you have to visit the official website of the insurance company and provide the requisite details. As there are no middlemen involved in the process, online term insurance policies are cheaper by 30-50%, vis-a-vis offline term insurance policies.
- Disclosure of Facts: When you avail term insurance online, make sure you get the right product. When you buy term insurance offline, the insurance agent fills up the proposal form. The insurer may not be honest while filling up the proposal form and this can have severe consequences. In case of non-disclosure of facts by insurance agents (or yourself), insurers may deny the claim.
- Sum Assured: Let’s assume you can spend up to Rs 2,000 on term insurance premiums each year. For a yearly premium of Rs 2,000, let’s also assume that you get sum assured of Rs 20 Lakhs when you avail the plan, offline. When you avail online, the premium would be less for the same sum assured. Ultimately, you get a higher sum assured if you avail term insurance, online.
- Claim Settlement Ratio: Claim settlement ratio indicates the number of death claims settled by an insurance company in a year. It is an important sign for potential term insurance customers. If you plan to buy term insurance online, check the ‘claim settlement ratio’.
- Flexibility: Buying term insurance online is great, vis-a-vis buying it offline. Once you visit the website, just understand the kind of information which must be furnished. Many insurers do not insist on medical examinations if the sum assured is Rs 50 Lakh or below. Do medicals before availing term life plans. This would aid in a hassle-free claim settlement.
- Quick and Simple: The process of buying term insurance online is quick and simple. By referring to the details mentioned on the website, you can easily make an informed decision without depending on insurance agents. You can always access policy-related information, online. Errors can be fixed (if any) and the policy can be renewed easily.
See Also: What is a Term Life Insurance Policy?
Things to Keep in Mind While Buying Term Insurance
- Speak to the insurer to clarify doubts (if any), before submitting the online application form.
- Thoroughly assess requirements in terms of the rider benefit, sum assured, payment options and so on.
- Take a look at the features of term insurance when you avail online and check if new features have been introduced.
- Be careful while uploading the required documents which must be checked for accuracy and completeness.
See Also: How Much Term Insurance Should I Buy?
Considering these benefits, buying term insurance online is more convenient than buying, offline. Some people still prefer to purchase term insurance policies offline. But, the choice is entirely yours.
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