Try answering this simple question. What is the most important thing in life? It’s got to be FAMILY. Think you are a very responsible person? Just prove it by taking good care of your family. But there’s a problem….What if something untoward happens to you? If you are the sole breadwinner of your family, this is a nightmare. How will your spouse and children take care of themselves?
This is why you need a term life insurance plan. Time for a famous saying….. “If you are not around to catch your family, at least leave them a safety net.” What is this term life insurance plan? Simple….you pay a fixed amount of money to a life insurer, called the term life insurance premium. The premium is paid for a fixed time period, called the tenure/term of the plan. If you die within the term of the plan, the life insurer pays money to your spouse and children (beneficial nominees), called the sum assured (death benefit). If you survive the term of the life insurance plan, you get nothing.
Now to the BIG question. Should you avail an online term life insurance plan, or should you make the purchase offline? To answer this question, you need to first know, the difference between an online term insurance plan and its offline counterpart. IndianMoney.com offers genuine, unbiased, free on-call financial advice to ensure that you make wise financial decisions. To avail free financial advice/education from IndianMoney.com, all you need to do is, just leave a missed call on IndianMoney.com financial education helpline 02261816111 or just post a request on IndianMoney.com website.
What is the first thing you look for in a term life insurance plan? It’s the premium of the term life insurance plan. You believe….cheap is best. Now online term life insurance plans, are cheaper than the offline term life insurance plans. What’s the reason for this?
Now, does this mean offline term life insurance plans, lose before online term life insurance plans? No….Online term life insurance plans, have yet to gain popularity among you and other citizens, of the country. They are gaining popularity with our citizens, but this will take time to happen.
You avail an online term life insurance plan, directly from the life insurer. There is no life insurance agent, to help you fill the proposal form. If you avail an offline term life insurance plan, you have a life insurance agent to help you fill the proposal form. Your life insurance agent also helps your family, with the claim settlement. Does this mean an online term life insurance plan, is not a good deal? No….If you avail an online term life insurance plan, you would be forced to fill the proposal form yourself. Chances are….you would be very honest while filling the proposal form. This means a hassle-free claim settlement.
Term life insurance is a contract based on TRUST. You avail an offline term life insurance plan. Your life insurance agent helps you fill the proposal form. Now, you are a smoker and a smoker has to pay a higher premium, than a non smoker. Your life insurance agent tells you…do not mention smoker, in the proposal form. Now, this is a breach of trust. If the life insurer finds out you were a smoker, the claim could be rejected.
Online term life insurance plans, have a lower cost than the offline term life insurance plans. No commission is paid to a life insurance agent, in an online term life insurance plan. There is no paperwork as the process is electronic. Now the life insurer can offer the online term life insurance plan, for a lower premium than the offline term life insurance plan.
The online term life insurance plan, is smartly marketed by life insurers. You must have seen ads by life insurers, Term life insurance plans - 1 Cr Life Cover @ Rs 500/Month. Term life insurance plans - 1 Cr Life Cover @ Rs 600/Month. Term life insurance plans - 1 Cr Life Cover @ Rs 20/Day. Term life insurance plans - 1 Cr Life Cover @ Rs 17/Day.
Term life insurance of 1 Crore, at just Rs 17 to Rs 20 a day? Why not avail it? You would avail an online term life insurance plan of INR 1 Crore, even if you don’t require a crore of life insurance. An offline term life insurance plan, charges you a higher premium, for a sum assured of a Crore.
You must have heard of the term “horses for courses”. Yes, both online term life insurance plans and their offline counterparts, have their pros and cons. Your job…Select a term life insurance plan, which best suits your needs. Do not just pick up any term life insurance plan, just because it’s cheap. Take a look at the features and benefits, before availing a term life insurance plan.
Mr C.S.Sudheer is a management graduate. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.
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