With over 504 million monthly active internet users in India, the country can safely claim to have the second-largest digital population in the world. The Internet has facilitated a number of services that were hitherto difficult to access. Financial services are one of the categories that have benefited immensely from the digital revolution. One can invest in mutual funds or buy an insurance plan online. The demand for online insurance plans has grown rapidly and it could help in improving the insurance penetration in India. It is very easy and convenient to buy a term insurance plan online due to the simple structure of the plan.
A term insurance plan is a simple agreement between an insurer and an insured whereby the insurer promises to pay a pre-decided amount to the insured’s nominee in the event of the insured’s death. The insurer is liable to honour the agreement on the condition that the policyholder pays all the premiums on time. Term insurance does not have an investment component and no maturity amount is paid after the policy term gets over. A term insurance plan simply terminates at the end of the policy term.
There are multiple benefits of buying a term plan online. The primary benefit is the cost of the policy. Online term plans are cheaper when compared to regular term insurance. To sell regular term insurance, an insurance company has to use consultants, agents or even their own marketing professionals. The insurance agent charges a commission for his/her service which gets completely eliminated in the case of online term plans. Additionally, physical documentation is significantly less which leads to additional savings for the insurer. Insurance companies work on the premise that people who buy an insurance policy online lead a relatively healthy lifestyle. A healthier lifestyle reduces the chances of diseases and hence the risk for the insurer, which leads to lower cost of term plan for online buyers.
Another major advantage of buying a term plan online is the tools available on the website of the insurer. While buying term insurance offline, you are dependent on the insurance agent or the marketing professional. People generally choose from the handful of the options provided to them. In the case of online term plans, you can conduct thorough research and make comparisons with other plans. Insurance companies also have EMI, premium and eligibility calculators online which helps in making an informed decision.
Online term insurance plans undoubtedly offer convenience and ease of access to consumers, but certain things should be kept in mind while buying online term plans.
Location: Many online plans are only available to customers in major cities. One should check if a specific term plan is available in the selected city or not.
Talk to the insurer: It is always reassuring to talk to the insurer before buying an online term plan. It helps in getting an idea of the application process, the process for a medical check and the claims process.
Take into account your needs: People should always opt for a financial product that is ideal for their needs. Evaluate your needs and ascertain the policy term, premium payment term and the coverage accordingly.
After you have finalised a plan, it is time to pay the first premium and buy the plan. The exact process of buying a term plan online differs for every insurer, but the broader process is similar.
If the basic precautions are taken, buying a term plan online is an ideal option. Opt for the Canara HSBC Oriental Bank of Commerce Life Insurance iSelect Smart360 Term Planand get a host of benefits like inbuilt covers and multiple payout options. The iSelect Smart360 Term Plan also provides the option to choose the coverage as per your requirements.