Benefits of buying term insurance online
Here are some benefits of buying an online term plan:
Clear understanding of the plan’s features
Buying a term plan online allows you go through the insurer’s website and read all the features and benefits of the term insurance plan. This enables you to make better decisions in your endeavour to financially secure your loved ones.
Comparison of cost
When purchasing a term plan online, you can check the premium of several term plans and pick one that offers the most useful features at a cost-effective premium.
Save money on premiums
Most insurance companies tend to offer discounts when you purchase a term plan online. This will help you save money on the premiums you pay for your plan.
Purchasing a term plan online takes very little time compared to buying it offline. You can compare multiple plans simultaneously with the click of a button and make seamless payments online.
Higher level of transparency
When you buy an online term plan, you alone carry out all the formalities like submitting your documents, filling out forms, and completing the payment. This, in turn, enhances your understanding of the terms and conditions of the insurance policy. It also ensures complete satisfaction and faith in the product as you are involved in every step and know what you are signing for.
Comparison of features
When you buy online term life insurance, you get to carefully go through the features and benefits of various plans. This lets you compare the pros and cons of each and then select an appropriate policy.
Online term insurance plans are safe to buy. Insurers offer secure payment gateways that ensure that your money is safe and reaches the receiver without any hassles or fraud.
What to look for before buying a term plan online?
Here are some things to consider when buying a term plan online:
Claim settlement ratio
The claim settlement ratio is the ratio of the claims settled by an insurance company versus the claims raised by customers in a given year. This is an important parameter that helps you understand the reliability of an insurer. A high claim settlement ratio can ensure accountability and trustworthiness. So, it may help to pick a plan by an insurer with a high claim settlement ratio.
Ratio of solvency
The solvency ratio refers to a company’s financial standing and its ability to settle claims. The Insurance Regulatory and Development Authority of India (IRDAI) mandate a minimum solvency ratio of 1.5 for all insurance companies. When you buy online term life insurance, you can keep an eye on this parameter.
Riders are additional covers that can be added to enhance your base coverage. Different term insurance plans offer different riders. You can compare these and select appropriate riders for yourself.
Specification of products
When purchasing an online term plan, you can choose a plan that offers features suited to your unique needs. You can check the premium payment methods, riders, top-up options, and more and see how they align with your requirements.
How to choose the right term insurance plan online?
Here are some things you can do to choose the right term insurance plan online:
Evaluate your requirements
Evaluating your requirements will help you understand what features you need in an online term plan. This will allow you to choose a comprehensive plan with suitable riders and benefits that can cater to your requirements.
Arrive at a suitable sum assured
Once you have understood your requirements, you can proceed to select a suitable sum assured that not only fits your budget but also your family’s requirements. You can consider factors like your lifestyle, ongoing debts, your family’s future goals, and more to arrive at a suitable sum assured.
Add necessary riders
Riders substantially add to your term insurance plan’s coverage. So, you can go through the riders offered by a policy and pick the ones that seem appropriate.
Steps to buying term insurance plan online
Here are the steps to buy term life insurance online:
- Visit the website of the insurance company
- Browse through the different plans, compare features, and select the term plan you like the most
- Click on Buy
- Enter your required personal details
- Select the sum assured and policy tenure
- Add riders if you want additional coverage
- Check the premium and select a premium payment method of your preference
- Go through the terms and conditions of the term insurance policy. In case of any query, you can reach out to the customer service team and get a clarification
- Once you are entirely sure, complete the payment
Post payment you will have to submit your basic KYC documents and may have to undergo medical tests.
If you complete these steps on time, your policy may get issued faster.
A copy of the policy will be sent to your registered email address as well as your communication address.
a) Can I get a maturity value if I buy term plans online?
b) How do smoking habits affect my online term plan premium?
c) Do I get tax benefits if I buy term plan online?
d) Is it secure to buy a term plans online?
e) What are the documents required to buy an online term plan?
- Identification proof like passport, masked Aadhaar Card, driving license, or voter’s ID
- Address proof like passport, Aadhaar Card, driving license, or voter’s ID
- Age proof like the PAN card, birth certificate or class 10th or 12th mark sheet
- Passport-sized photograph
- Medical reports (if asked for by the insurer at the time of policy processing)