There is a new trend in your office these days. Your colleagues are spending a lot of their time working on their computers and smart phones...This is not some new found motivation to impress the boss….Your colleagues are buying their favorite shoes, laptops and smart phones online and at a massive discount.
With everything being bought online these days can term life insurance be far behind.....Online term life insurance plans are replacing the traditional term life insurance plans sold by your insurance agent. Know these tips before buying an online term insurance plan.
Online term life insurance plans are cheaper than term life insurance plans sold by your agent
You have to pay a 40-50% lesser premium for the online term life insurance plan than for its offline counterpart.
So why are these online term life insurance plans so cheap?
You can pick up an online term life insurance plan directly without the help of an intermediary (Your life insurance agent). This saves the life insurer the distribution costs (No commissions need to be paid to the life insurance agent).
The life insurer passes on the savings in cost to you making the online term life insurance plan very cheap. Buying an online term life insurance plan is paperless….The life insurer saves on paper (think administration expenses). There is also no problem of data storage and operations. The savings in costs are passed by the life insurer to you.
If you are under 45 years of age you can easily purchase an online term life insurance as the life insurer presumes you are young and healthy. You would purchase an online term life insurance plan if you are young and tech-savvy.
If you along with a number of fellow youth take up online term life insurance plans the life insurer can give you these plans at a cheap price.
Remember: You will have to undergo medical tests before you take up an online term life insurance plan even though you are young. This also helps in better and hassle-free claim settlement.
Will your online term life insurance plan settle the claims of your loved ones?
Claim settlement is the most important reason you take up a term life insurance plan. Would you want your family running from pillar to post trying to claim the insurance money when there is nothing you can do about it?
You do not have much cause for worry here. You would take up an online term life plan if you are young and tech-savvy. You have to undergo a medical test before you take up the online term life plan.You would make better disclosures (Insurers want to know everything possible about you as life insurance is a deal based on trust) if you avail an online term life plan.
Your life insurance agent (in case of an offline term life insurance plan) advises you to hide certain details about you (If you are a smoker the agent tells you not to mention it) and save on your term life insurance premiums. This could result in the claims of your loved ones being rejected in case you (policy holder) die early.
If you buy an online term life plan you would fill in all the relevant details about yourself (make a better disclosure) and this means the claims of your loved ones would be settled.
Online term life insurance plans are simple plans
Online term life insurance plans are plain vanilla (basic) insurance plans. These plans are preset which means you have to choose an online term life plan based on what is available.The online term life insurance plan cannot be customized to meet your needs. (You do not get to choose an online term life insurance plan based on your needs).
No rider benefits
Rider benefits are additional benefits you get from your term life insurance plan on paying a slightly higher premium. You have a critical illness rider where if you suffer from a critical illness such as a heart attack or cancer the term life plan will pay you a lump sum.
You have to pay a higher premium for a term life insurance plan with a critical illness rider.
Study the online term life insurance plan
While going through life insurance aggregator websites (Websites which show you a comparison between various online term life insurance plans) you need to understand that what you see may not be what you get.
The premiums of the online term life insurance plans may differ based on your health condition and your documentation needs to be in order.
The final decision of buying a term life insurance plan (online or offline) is in your hands. You need to pick up an online term insurance plans based on your needs. If you need rider benefits then you cannot purchase an online term life insurance plan.
"Fun is like life insurance, the older you get, the more it costs". You need to avail an online term life insurance plan when you are young and healthy. Online term life insurance is a game for the young. Know these tips before buying online term insurance plans.
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