Buy term insurance online at early age?

Posted by ankita on December 1st, 2016

With the advent of “internet” people can buy from pin to pyramids online. They can purchase goods, commodities, investment funds, perform banking operations, book movie tickets as well purchase insurance policies online anytime and from any part of the world. Gone are those days when people used to visit insurance companies, collect information leaflets, call up agents, fill up forms, submit documentation manually at the insurance centre, etc. The entire process would be tedious and time consuming. But today, insurance policy could be purchased by just hitting the buy button on your smartphone, laptops or tabloids.

Online term insurance have come as a boon for consumers especially the common  man that could be purchase around 30 to 40 % cheaper as compared to a couple of years before. Let’s understand how? While selling insurance cover online companies don’t have to pay agents commission which helps to cut down the premium for online term plans to approximately 40-50% than plans sold offline. It’s a genuine tendency that online purchaser would be educated and better off in health terms than average Indian therefore, it works in the favour of the policy buyer and the premiums are comparatively low.

To buy online term plan all you need is to submit the application online through insurance company’s web portal. For an average life cover of 1 crore your premium might range to mere 7000 to 8000 annually and the cover starts immediately once the payment is done online for premium. Some companies give the benefit of no medical test procedure for term plans being purchased online.

Online term insurance offer a faster, efficient and transparency in policy products. In manual purchase, companies had to rely more on consultants, agents and brokers, along with own in-house sales, this could prove both expensive and inefficient. This helps the companies to save time as well cost inefficiencies such as expense on employee hiring, papers, etc. People who wish to buy policies can directly visit the websites and go to suitable purchase as per their income source, risk appetite and family needs. The insurance policies are delivered seamlessly and there is no agent involved in it. To cut down the costs, insurance companies have simply designed  term plans and have made available online, thereby giving a hassle-free experience to customers. This reduces the turnaround time in getting an individual insured.

Some advantages of online term insurance are as follows:

•Easy Buying: The process of buying term plans online is hassle free, quick with no agent interference in decision making.

•Cheaper Policy: No agent commission will bring down the cost by 40-50%, so buyer gets much higher insurance cover for the premium he or she pays.

•Time Savings: Online term plan purchase surely saves your valuable time and energy of visiting branches, collecting information leaflets, filling up forms, etc.

•Special Discounts: Various companies give special discount such festive offers, particular credit/debit card premium payment offers, discount for women, non-tobacco users, etc.

Just in case the policy holder is to meet an unfortunate incidence and happen to die; the nominee can directly approach the insurance company. Every company will have pre-set procedure for the claim. It is advisable to make your nominee aware about these things. Nominee can initiate the online term insurance claim process by informing the insurance company about the death of the insured person over phone or via email. Online communications generally act as a proof in case of any issues during the claim procedure.