Term insurance has made its presence felt on e-commerce platforms, making it more accessible to customers. Choose a plan and cover that is right for you
By Satishwar Balakrishnan
A term plan helps one prepare for uncertainties. One of the most cost-effective methods by which one can mitigate risk is a term insurance. It gives you peace of mind knowing that your loved ones will be financially secure when you are not around.
Digitisation has helped to reach to the potential customers. This has made buying a term insurance easy for customers as they can buy the cover with just a click of the button. From e-KYC to online applications, now the insurance plans are available on a click, and you can buy insurance policy in minutes.
Term insurance has also made its presence felt on the leading e-commerce platforms, making it more accessible to the customers than earlier. Choose a plan and cover that is right for you. Life insurance offers a variety of policy covers and term lengths (from one year to 30 years); personalise your coverage to fit the needs of your loved ones and your budget.
Coverage and rates
Many customers need to take a medical test to finalise coverage and rates. In some cases, though, some customers may qualify for a cover without medicals. If the life insurance company has an enough understanding of your health and risk, the formality of a test may not be needed.
Be honest when completing your application. The issuance of the benefits depends on the truthfulness of answers in the application. After the coverage is determined, make the premium payments. Also, add-ons and riders can provide a policyholder with a good coverage at marginal premiums.
For example, a term plan for a 35-year old for Rs 1 crore cover up to age 60 will cost around `663 per month. Adding Rs 10 lakh of critical illness will cost Rs 314 per month. Plus, Rs 50 lakh of accidental cover can be purchased for Rs 240 per month. So, the total cost will be for Rs 1,217 a month (pre-tax) or Rs 1,336 (after taxes). This is all it takes to buy peace of mind.
The writer is CFO and Principal Officer, Aegon Life Insurance