Is Buying an Online Term Plan the Right Decision for You?

You can buy anything online today, be it your shoes, your kitchen appliances and much more. So, why should insurance policies stay behind? With the comfort and low prices of premium online term plan does seem like a lucrative option. But is it for everyone? Here are top things you must consider before buying a life insurance policy online!

Are You Ready for an Online Insurance?

·         Lone Ranger: The most obvious difference between buying an insurance plan online and offline is the absence or presence of the agent. In case of the former, there is no agent and you are in direct contact with the company through their online interface. While this will eliminate the commission you had to pay otherwise, it will also give you greater control on decision making on every aspect of the policy.

·         Sound Financial Knowledge: The biggest advantage of online term insurance is that all the information is on your fingertips. You are no longer dependent on the whims of an agent or their personal interest to learn the financial nitty-gritties. You can check out even the minutest details of any plan on the company’s website before choosing a plan. You can read about the features, terms and conditions and make an informed decision without being swayed by an agent who is more interested in his commission than your long term security.

·         In Time of Need: In the event of the death of the policy holder, the claim and settlement must be carried out to secure the sum assured. This task, in offline policies, is undertaken by the agent who is the underwriter. But in case of online policies, the onus comes upon the policy holder's nominee, who will then have to coordinate with the customer support of the insurer. The good news is that the process has become immensely simplified and convenient so that even a novice at the internet can navigate through the claim settlement process.

·         Be Safe from Scams: With online transactions, you are dealing directly with the insurance provider. They usually ensure that their website is secure and all monetary transactions are absolutely safe. You no longer have to worry whether the agent who rang your doorbell is a fraud, who will scam you of a large amount of money.

·         Cheaper Policies: The online mode also offers lower premiums. This is because what the insurer saves in terms of overheads is passed on as discounts to the customer.

If you were convinced by the above points, then you consider an insurer like Bharti AXA, which offers varied online term plans. Not only will it save your money but also be a convenient option.

Term Insurance - What Is In It For The Family?

The first year premium collection of life insurers rose by 9.5 percent to stand at Rs 11,026.82 crore in December 2015, as compared to Rs 10,071.80 crore in December 2014, says an article published in The Economic Times in January 2016. A life insurance policy is possibly the most important investment that you would make during your entire lifetime. It protects you and your loved ones against the uncertainties of life.

Why Buy a Term Plan?

Term plans have been gaining popularity in India as a pure life insurance product. Since it is a pure vanilla product, you get a high cover at a low cost. Moreover, online term insurance is cheaper than its offline counterparts, primarily due to the absence of third party/agent involvement. At the same time, you should be aware that it does not offer any survival benefits. However, it is most the appropriate product when it comes to securing your family’s financial future. It is fairly risk-free and lets you buy a higher policy at a fraction of the premium you would pay for other policies.

How Can a Term Policy Help You Secure Your Family’s Financial Future?

Term insurance can help you plan your family’s financial security, keeping in mind various factors such as daily expenses, child’s education and marriage, loan repayments and much more. To ensure that you do so, you must choose a cover that will be adequate to take care of every expense you can think of. Ideally, you should buy a cover at least 10 to 12 your annual income.

You must also factor in your family’s standard of living and the inflation rate. This would ensure that your family would not have to compromise on their needs due to a paucity of funds after your demise. The tenure of the policy is the second most important determinant of how well you secure your family’s financial future. It is essential to buy a policy that covers you at least till retirement. You can also choose a tenure by the end of which you expect your kids to become independent. You must choose a minimum tenure during which you expect to repay all your loans as well.

Buy a term policy and gain peace of mind that your family wouldn’t have to struggle financially after your demise. You can buy an online term plan within minutes. All you need to do is fill in the relevant details, upload your KYC documents, pay online and you are done. You can also use the premium calculator to choose the right online term insurance. It can help you calculate the most affordable premium amount.