Term Insurance: Benefits of buying a term life insurance plan online

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November 10, 2020 11:59 AM

In order to make sure that your family is financially protected during times like these, it is important to invest in a term insurance plan.

gifting insurance, personal accident insurance policy, premium, accidental death, partial disabilities, temporary disabilitiesThe Covid-19 pandemic has, unfortunately, hit those in the informal sector the hardest.

Countries all across the globe continue to fight the ongoing COVID-19 pandemic which has infected over 45 million people with maximum infections reported in the USA and India. In between this heightened uncertainty spread throughout the world, there are some significant lessons related to our lives that we all must reconsider. The ongoing pandemic has taught as all how unpredictable life is and that we must always stay prepared for no matter how hard situations and challenges life throws at us.

However, during situations like these, many amongst us get confused as they are not sure how to stay safe in an untimely situation like the current pandemic. While the government is doing its best to ensure that things stay in control, there are a few things that need to be taken care of at an individual’s end and one such thing is your family’s wellbeing.

In order to make sure that your family is financially protected during times like these, it is important to invest in a term insurance plan. A term insurance plan provides you with financial protection to secure your family from financial distress in case of an unfortunate event like your untimely death. Additional relief is that today it is extremely easy and convenient to invest in a term life insurance plan of your choice.

There was a time when buying a term life insurance plan was not as easy and simple as it is today. The entire process evolved endless paperwork and several physical meetings in order to first understand the product and later complete the buying formalities.

However, technological advancements have completely changed the way term life insurance is bought in India today. The entire process starting from applying for a term life insurance plan to its renewal and further filing a claim has become extremely convenient with the involvement of various digital mediums. With a few clicks, you can now buy, renew and file a claim on your term life insurance policy. This is helping both the consumers as well as the insurers. Here are some of the prominent benefits of buying term life insurance online.

Affordability

One of the greatest benefits of buying a term life insurance online is lower premium rates. As per numerous researches, online term life insurance plans can cost up to 5 – 15 per cent less in comparison with the same plan being bought through an offline medium. One of the key reasons that influence the cost is the absence of an insurance advisor. Hence there is no or very low commission involved in selling the policies online. Moreover, many insurers offer additional discounts on the premium when buying a policy online. Also, savings from overheads like documentation, logistics, stationery, etc. charges are also passed on to the customers.

Compare and Buy

Yet another popular benefit of buying a term life insurance policy online is that you can compare the plan you wish to buy with other similar plans available online. Not just you can compare the plans on aspects like premium, sum assured and features offered, you may also compare the claim settlement ratio of different insurers as claim settlement ratio plays a major part in term life insurance policies. There are some prominent online insurance market places that allow you to compare different plans on various aspects and help you to save.

Buy Without Physical Medical

Insurers give you the prerogative of buying a term life insurance policy without a mandatory physical medical test when buying a policy online. Insurers have come up will the facility of telemedical under term insurance wherein customers who are graduate and above, and wish to buy a term plan up to Rs 2 crore sum assured can buy a policy online through telemedical. Under the telemedical process, a doctor from the insurance company calls up the customer to understand their current medical history and condition. The telemedical process is completely regulated by the IRDAI and is reliable from the customer’s point of view.

Time-Saving and Transparency

Buying a term insurance plan online saves a lot of time as applying for term plan online involves no documentation and paperwork. All the submissions happen online which help in saving a lot of time and efforts. You do not need to visit the office or carry important documents to the insurer’s office. Also, when you buy a term plan online, there is complete transparency and trust between you and the insurer. The insurance company rightly mentions all the inclusions, exclusions and other important details related to the policy in policy documents. You may anytime read the terms and conditions whenever in doubt.

(The author is CBO-Life Insurance, Policybazaar.com)

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