Digitization has gathered steam in India, with a phenomenal increase in connectivity and internet penetration across the country. Smartphone usage and data services have pushed this trend and today, it has also become a common place for users to buy insurance policies online. Term insurance policies are among the most notable, so it is important that you understand why you should buy a term insurance plan, and how you can do this online.

Term Insurance

Term insurance is a life insurance policy in which the cover is available for a specified period of time. The premium on the policy remains constant throughout the validity period. However, there are no returns if the person insured is alive until the end of the policy.

Term insurance plans have lower premiums. They provide cover against any unexpected mishap.

Online Term Insurance Plans

The first online term insurance policy was introduced in India in 2009. As per a report from Boston Consulting Group and Google India, by 2020, 75% of all insurance policies will be sold online. By that time, the online sales of insurance will also increase by 20 times.

Online plans are inexpensive and offer convenience to buyers. Contrary to popular belief, the service and quality of insurance policies does not suffer, when bought online.

Buying Online Term Insurance Plans

Online term insurance plan are cheaper than offline plans. In most cases, you save 30% – 40% while buying the policy online. If you are fortunate, however, you may also save as much as 70%. This is because insurers save on agents’ commissions, infrastructure, and paperwork, passing on these benefits to buyers.

Online purchases are convenient and efficient. Information on websites gives you a better understanding of different term insurance plans, and many sites also give you the opportunity to compare term insurance plans online. Users can browse the different plans and choose the best one. Visit the website of the preferred company, select the appropriate plan, fill in the required details, calculate the premium, and make the payment. That is precisely how simple it is to buy a term insurance plan online.

Disclosures in Online Term Plans

With no middlemen involved, transparency in all dealings is also enhanced. Information reaches you directly and your disclosures reach the insurer without any information being confused with an interpreter. Direct communication is always more effective and helps avoid confusion.

You have to disclose general information, income, medical history, present condition, insurance history, lifestyle habits, and family health, among other details, while filling an application for online insurance. Additional questions may be asked, depending on your answers. Some insurers also suggest medical tests.

Analyzing your disclosures, the insurer will approve or reject your application and decide on a premium for your policy. For instance, people with a poor medical history pay a higher premium than others. It is important for you to be honest with the disclosures as this helps to get claims easily, when required.

Some online term insurance plan offer a sum of INR 70 lakhs, while the average that an offline plan offers is INR 1.3 lakhs. This shows the difference in the benefits a person may get by opting for the right method of buying the policy. Understand the features of the policy and select the appropriate method to enjoy maximum benefits.

 

Source: http://www.marketexpress.in/2016/03/what-you-need-to-know-about-buying-term-insurance-plans-online.html