Online Term Plan - A New Trend in Insurance Industry

• Reduce taxable income by up to Rs. 1,50,000 deduction under section 80C**
• Convenient payment options - annual, half-yearly, quarterly or monthly premium payments
• Do more with plans that offer pure protection, retirement planning and investment options

Why you should opt for an Online Term Insurance Plan

Term insurance is the purest form of life insurance since it is solely protection-oriented. These policies have become a popular choice for policy buyers of late due to their affordable pricing and the option to choose a large life cover. Traditionally, policy buyers had to go through an insurance agent to purchase a term insurance policy. However, with the digitisation of the Indian insurance industry, most leading insurance companies currently offer policy buyers the choice to purchase term plans via online or offline channels.

Benefits of online term insurance plans

• Ease of Comparison:In order to make an informed choice while purchasing an insurance policy for yourself, it is advisable to do your due research and compare a few different plans. This will give you an idea of the benefits offered by various policies and the prices that they are offered at. Thus, when purchasing a policy online, you have the added option of being able to compare various plans online and choosing a policy that is best suited to your needs.
• Economical:Online term insurance plans are typically more affordable than policies purchased through an agent since you won’t have to pay an additional commission to the agent. Further, certain insurance providers also offer discounts to individuals who purchase policies through the company’s official website.
• Convenience:Purchasing a term insurance policy online is also extremely convenient. You simply need to visit the insurer’s website, select a plan, key-in your details, provide any documents that the insurer might require, and pay the due premium. You can, thus, purchase an insurance policy from the comfort of your home in a hassle-free manner.
• Customer Support:If you have any troubles or need assistance while purchasing your policy online, you can contact the insurer through any one of the customer care channels that are mentioned on the official website. Most insurance providers have toll-free numbers, chatbots, and dedicated email IDs through which policy buyers can contact them.

Things to keep in mind when purchasing an online term insurance plan

• Firstly, before you purchase a policy, make sure to consider your needs, premium payment ability, annual income, the needs of your dependents, and your future financial goals. Ideally, you should choose the sum assured on the basis of these factors.
• The term insurance policy that you purchase should provide you coverage at least during your employment years. This will ensure that the death benefit, if paid, can serve as an income replacement for your family, during your absence. Thus, make sure to check the policy tenure range offered by the insurer, and opt for a policy term that matches your coverage needs.
• At the time of furnishing your personal details to the insurer, make sure to provide accurate information without concealing any facts. Insurance providers are well within their rights to annul your policy if they find any discrepancies in the information that you provided.
• When purchasing an insurance policy from a particular insurer, you will have to make it a point to check the reliability of the insurer. This can be done by checking the insurer’s history, claim settlement ratio, solvency ratio, persistency ratio, etc.

As a policy buyer, you can choose to purchase an online term insurance policy through the insurer’s official website or through trusted third-party insurance websites that will also give you the option of comparing various plans side-by-side. Regardless of how you choose to purchase your policy, make sure to familiarise yourself with the policy terms and conditions and ensure that the policy is best suited to your needs.