Life is full of uncertainties, and a breadwinner needs to get term insurance done in order to secure his/her family’s future.
Term insurance covers the family of the insured after his/her death due to illness or accident. To ensure that loved ones and family members do not go through any hassles if the earning member of the family is not anymore, one must invest in a solid term insurance plan.
Thanks to Technology, these days, many of the best Insurance companies in India are on the digital platform, exhibiting the best term insurance plans that can be customized as per ones/needs and demands. Buying term insurance online is the most appropriate way to buy a term plan as it saves time, effort, and money to speak to many agents, understands different plans, comprehends the best policy by strategic comparisons, and above all, incessant tackle follow-up done by agents.
It is highly recommended to buy an Online Term Plan to avail maximum benefits.
Term insurance plan comes packed with many advantages, features and benefits. Some the main advantages of term insurance plans are discussed below:
In case of the untimely death of the bread earner of the family, there is financial stability that a term plan can offer to the insured's family and dependents that even after he is not there, their financial needs are taken care of.
Objectives and goals of long-term planning benefits can also be derived from a term plan insurance, which ensures a good amount to be disbursed after investing in it till the time an earning is made by the insured. After the income stops, these savings can help him survive in his later years when he is old and unemployed.
As a part of long term goal, in case of huge debts like education, new business, or even marriage of children, this investment can come handy in the form of a term plan that can help the insured lay-off his huge debts.
Term plans can be beneficial in fulfilling retirement benefits like regular inflow of finances, even when the insured is out of employment after a certain age.
Under section 80 D of the Indian Income Tax Act 1961, one can derive tax benefits out of the term insurance policy he applies for.
For example, if a 30-year-old man wants to get term insurance of Rs 1 Crore with duration of 30 years, what online options can he get?
|Insurer||Term Plan offered||Premium (Rs p.a.)||Renewal age||Riders available|
|Reliance Life||E-Term Plan||7426||75||0|
|Edelweiss Tokio||Protection Plan||8208||80||3|
|I – Term Plan||8322||75||5||-|
|Maxlife||Basic Life Cover||8436||70||1|
|PNB Metlife||Mera Term||8459||75||0|
|HDFC Standard Life||Click2protect plan||8641||75||1|
The true meaning of insurance is Term Insurance. Evaluate and consider the best insurance plans by strategically analysing companies and their plans online. Certain parameters to be considered while choosing the best insurance company to invest in for purchasing the apt terms plan from are:
Claim Settlement Ration
Incurred Claim Ration
Premium to be paid
Add on Benefits
Technology has made it very convenient for individuals to research various insurance options available online and choose the policy that is best suitable as per his needs. Some of the common benefits derived from purchasing an online term plan are:
Buying an online term plan gives a huge advantage in lower cost as the agent commission, communication, and commuting costs are cut down. There is a direct deal between the insurance company and the individual. Approximately, the cost difference is from 40-50% as it does not cover the middleman's commission and fees. Also, insurance companies believe if the individual is buying an online term plan insurance policy, the mortality rate is also less in such cases.
The customer has the advantage of customizing the term plan as per his demands, needs, desires, and expectations. He can choose between add on, top-ups, and extended riders he would want to buy along with his plan.
As easy as it is to buy an online term plan, similarly, claiming settlements are equally easy and user-friendly. Instead of going through the hassles of contacting the agent frequently for the status of the claim, one can also check online. Also, in case of ineffective delays in claim settlement, IRDA has issued the right for the insured to file a complaint to the Insurance Ombudsman to look into the matter and to expedite the claim settlement procedure.
As compared to an offline policy, the insured gets the benefit of a higher sum insured and assure while purchasing and online term plan.
There is no hidden information. Agents tend to hide negative information, which may impact the customer at some point in time. Still, while purchasing an online policy, there is no such contingency, and complete transparency is maintained in the policy document.
Online customers have several ways to interact with the customer care department of any respective insurance company if the policy is through an online portal. Instead of getting bothered by making umpteen calls to a specific agent, it is easier to have access to a 24*7 customer care helpline number, email access, and message service to the insurance company to resolve issues.
The best part about buying an online term plan insurance is a comparison of a multitude of insurance companies and their myriad of term insurance plans available. Each plan could be different in terms of benefits, premiums, costs, claims, the sum assured, and extra benefits. The individual has the choice to research all given options, compare each one, and select the best policy as per his need and comfort.
Just like a higher sum assured, the lower rate of premium is available for the insured to be paid towards the insurance company, considering no extra cost of the agent.
It is a self-service application, and the customer needs to be smart enough to plan, scrutinize, and critically analyse each option. The complete responsibility of the term plan purchase lies on the customer, thus empowering him to be his boss and select the best deal for himself.
It is more comfortable for the insured to do a quick reputation and goodwill check of each insurance company and get easy accessibility to all vital information regarding the company and its policies. The terms and conditions of each policy are clearly stated ad the customer should be smart enough to read them diligently and accept it with the car.
|Points of difference||Online||Offline|
|Intention||Clear intention to buy, so he will choose the plan that best suits his needs||Intention To sell so that the motive would be a hike agents commission rather than the customer’s advantage|
|Cost||Low cost, Low premium, and High sum Assured||High cost as it involves the agent’s fees, charges and commission, high premium and thus a low sum assured|
|Choice of product||His/her own||Recommended by the agent|
|Saves time and effort||Yes, with a hassle-free experience||N, incessant meetings and conversations with the agent can confuse and tire the customer|
|Responsibility, answerability, or clarification.||The Insured is completely responsible for everything as he is the sole person to comprehend the policy and buy it.||Agent helps|
|Human interaction eliminated||
The direct deal between the insurance company and the insured
|Interaction with the agent can be exhausting.|
|Fraud||Least chances of any fraud||More chances of getting conned|