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Will it be Better for Your Dependents If You Buy Your Term Life Cover Online?

dateKnowledge Centre Team dateJanuary 20, 2021 views145 Views
Will it be Better for Your Dependents If You Buy Your Term Life Cover Online?

Most of the things you do are to make sure that those who depend on you stay happy and comfortable. Whether it is building a house, investing money or buying insurance all of these actions have one common objective. Nowadays, you can order almost anything online, even large assets like furniture. Investments and insurance are also available online. However, there are also risks of online.

So, can you take the chance of getting something as important as term insurance online? Is it possible that online term insurance makes life easier for your family? Or are there other reasons you should buy a term insurance plan online?

Here are three ways of buying term insurance online will help your family:

1. Easy to Manage Your Policies Online

Insurance, especially life insurance is a long-term commitment. In India, more than 50% of the policyholders end up missing the instalments after 2 to 3 years into the policy term. Online policies help you avoid this misstep.

As per the surveys, most of the policyholders reported that they end up forgetting the premium payments as there was no reminder from the policy. Buying your policy online resolves this issue in two ways:

  • You can enable auto-debit on your debit or credit card for the premiums
  • You can receive alerts on your email if you need to for the due premiums

If you are investing in multiple life insurance policies, you can use an Electronic Insurance Account (EIA) and manage them all from a single window. Managing the policy through EIA means you can do any of the following:

  • Change your details
  • File nomination changes
  • Manage investment instructions
  • Assign administrator to manage claim filing if you are no longer there

Thus, online term insurance plan will make more sense for your dependents.

2. Next-Generation is a Digital Generation

Another important reason why online will make life easier for your dependents is that they are more digitally savvy. With almost everything from shopping to schools moving online, the next generation will definitely feel more comfortable operating online.

Term life insurance is no exception to the rule. If you use the e-insurance account, you can appoint one of your grown-up children to manage the account and claims after you.

3. Simpler Claim Process for Online Policies

Online policies are very transparent for both insurer and policyholder. Thus, at the time of claim, the insurance companies can usually process the claim faster for online term insurance plans.

Your family will have a better chance of faster claim settlement if you buy the term plan online and from an insurer who promises fast settlement. For example, Canara HSBC Oriental Bank of Commerce Life Insurance has the InstaPromise feature for term insurance plans.

InstaPromise allows the policies to receive the claim settlement within one day if they meet a few simple criteria:

  • The policy has completed more than three years
  • All the premiums have been paid before the claim
  • The total sum assured of the policy does not exceed Rs. 1 crore

Even if your sum assured is higher than Rs 1 crore, the insurer can process the claim within five working days if your term plan is an online plan.

How to Avoid Fraud while Buying Online?

The greatest risk of transacting online is the possibility of transacting on the wrong portal. However, you can easily overcome this drawback. Use any number of the precautions given below to ensure that you are in the right place:

  • Check for SSL Certificate: When you access the page, you will see a small pad lock with the website’s address
  • Use the online chat feature to connect with insurer’s representatives
  • E-mail insurer for the link to buy an online term insurance plan
  • Provide correct e-mail ID to ensure you receive updates and application status on email
  • You may complete your application in stages. The insurers generally save your application form if you have to leave without completing. So even if you close the browser and come back after a while you can get to the same step you left at.

With these simple steps, you can ensure that you transact without falling prey to online fraud. Also, you can easily secure the life of your loved ones with a life insurance cover, which will help them financially in your absence.

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Frequently Asked Questions (FAQs) for Term Insurance

This being a term plan doesn't offer any payout after maturity or expiration date.

Each insurance company has its own term insurance premium calculator. If you want to check out the premium quote, go for the iSelect Star term plan calculator. It gives a premium amount based on your age, gender, habits, education, and annual income.

You can purchase an iSelect Star term plan anytime between 18 to 70 years of age.

It depends on your needs. For example, if you want to cover a child's education or wedding expenses, you have to include them in your coverage. Your premium will be calculated accordingly.

If your key purpose is to give your Family financial protection, go for the term insurance plan. And if you want some savings, in the end, go for a traditional life insurance plan.

Go for at least 12 times cover than your annual income. Or you can go as far as 20 times coverage as per your needs.

The right time is when you don't have anything to keep your Family safe from financial storms, and they rely on you for financial needs.

If you are unable to make the payment or suffering from a terminal illness, a term plan pays a part of the sum insured to treat your disease.

Term insurance riders are attachment or endorsements made, while taking the term insurance policy, as a supplementary coverage to policyholders. Apart from the core death benefit, term insurance riders offer below-given additional benefits:

  • Accidental Death Rider When a person suffers from a terminal illness, his/her family ends up spending a significant amount in treatment and medical expenses. Accelerated death rider pays a part of the sum insured in advance to cover such costs and save the family from running out of cash.
  • Accidental Disability Rider If the policyholder can't pay the premium because of an accident or permanent disability, a sudden disability this pays the premium on behalf of the policyholder till completion of policy term or for a defined duration.
  • Critical Illness Rider If the insured person gets a heart attack, cancer, or any other critical illness, this rider pays a lump sum on valid diagnosis.
  • Premium Waiver Rider If the policyholder is unable to make payments due to income loss or disability, a premium waiver rider waives off all future premium payments. And the term policy remains active until the expiration date.
  • Income Rider: The rider ensures that your family receives regular income + sum insured in case of unfortunate demise of life insured.

Anyone can go for life insurance as it offers some savings after the maturity date, but it doesn't cover the protection of your family . The best term insurance plan is solely designed for taking care of loved ones if something happens to you. Term plans act as a shield between your family and sudden financial fall. They make sure that your family lives a healthy life even after you. With a little amount paid per year, you can be worry-free from the family's financial conditions.

Questions that you need to ask while buying Term Insurance?

  1. 1. Amount of premium you have to pay based on your age, habits, education, and monthly income
  2. 2. The total number of benefits covered in the term plan. Do they include benefits that you care about the most?
  3. 3. How to save money on tax if you pay for the term plan?
  4. 4. Do they offer regular income options?
  5. 5. Can you change the coverage and premium in the future?
  6. 6. Does the claim consider valid if death occurs outside India?
  7. 7. Which kind of death is not covered by insurance?
  8. 8. Can NRIs take term insurance? If yes, what are the conditions?
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