Why Should You Buy a Term Insurance Plan Online?

Why Should You Buy a Term Insurance Plan OnlineWhy Should You Buy a Term Insurance Plan Online?

So, when you buy apparels, gadgets, medicines and even grocery online, why should you shy away from buying term insurance online? Many of us think that online term insurance plans may not be effective as we generally do not meet agent or the insurance company or think there are hidden factors. What are the benefits of buying a term insurance plan online? Does Online Term Insurance comes cheaper compared to offline plan? Since there is no agent, how to contact insurance companies in case of query or claim? This article would help you with few of the queries you may have about online term insurance plans. 

Also Read: How to choose a good health insurnace policy in India?

Why Should You Buy a Term Insurance Plan Online?

Here is the list of benefits of buying a term insurance plan online.

1) Low premium

A lot of online term insurance policies are cheaper than their offline counterparts. This is mainly because, insurance companies save on policy administrative, distribution and other overheads, which they gladly pass on to their policyholders in the form of low premium rates. For instance, a 30- year old would need to pay only Rs 10,523/annum to get Rs 1 crore coverage under ICICI Pru iProtect Smart, which is an online term insurance policy.

2) Ease of buying

You can easily access all the information regarding term insurance policies, including its features, terms, and conditions, on the insurer’s website. It means, all the information that a buyer has is accurate and latest, and thus, ensures more transparency. Since you transact online, you can save your time across every step. Browse, choose, and buy anytime from anywhere! 

3) Flexibility

As you are in control of every aspect — from researching, shortlisting of insurance product to making a payment, the online mode offers you more flexibility and options when it comes to choosing the right term insurance policy.  Though, you would have to do a bit of homework while purchasing the policy online, this also comes as a blessing in disguise.

In the offline mode, you might get lazy and leave it to the insurance agent to fill the insurance form. However, there have been cases where agents have wrongfully filled the insurance form—either intentionally or mistakenly. This could prove costly to your family during claim settlement as any concealment of information may lead to rejection of claim by the insurer.

In the case of online mode, you can fill the insurance form yourself, which means the chances of errors are low. Even if there are errors, the online nature of the application makes it easy to revise and update the information. With online term insurance policies, you get exactly what you see without having to worry about claim rejections arising from mis-selling.

4) Simple documentation and Lesser paper work

The online purchase of insurance offers you numerous benefits of easy documentation and simplified paperwork. Being a part of the digital platform, your insurance policy can be serviced automatically with the entire documentation being done electronically. To buy a policy, you would require filling a detailed policy form, choosing a sum assured and uploading documents through an easy and secure user interface.

It means no need to run around for photocopies of your documents or address proof for buying the insurance. Indeed, it is a hassle-free process of securing your loved one’s future. 

You may like: What are the factors that affect your life insurance premium?

5) Handholding

Many people avoid buying insurance online as they think no one will help them in case an issue arises. However, it is not the case as you can fall back on other means like emails, toll-free number, online instant chats, etc. to get your doubts cleared. The insurance company will assist you throughout the process, and thus, make buying insurance online an easy and enjoyable experience for you.

Conclusion: Based on the above factors, the online mode wins hands down. However, it is absolutely necessary to decide the right insurance coverage that you should buy considering the factors like age, income, the number of dependents, etc. After all, it is all about securing the future of your family and you can’t take any risk with it. Isn’t it?

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Team – Myinvestmentideas

Why Should You Buy a Term Insurance Plan Online

3 comments

  • probiker

    Thanks for inforamtion sir. I have taken PNBmetlife 3 year back online.

    1cr life covereage and 1cr for disablility. for 12000ruppee yearly premium for 40years total policy.  Is my decision is correct

  • S Singh

    Excellent article and very easy to understand. In my opinion term insurance is a necessity for individuals who are the single bread earner of the family. Therefore, everyone should make term insurance his/her best friend.

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