Buying Term Insurance Online? Here's What You Need to Know

Life is uncertain, and you need to prepare for the worst. That’s where a term insuranc policy can help. It is the simplest form of Life Insurance and provides substantial coverage at affordable premiums. This ensures your loved ones have financial protection in case something untoward happens to you.A term plan will pay a sizeable sum insured in case of the policyholder's demise. Also, compared to other forms of life insurance , term plans are usually much lighter on the pocket. Moreover, if you are a working person and do not have enough time to visit a branch and complete the application process in person, don't worry! You can simply buy Term Insurance online. Just browse our various plans, choose the one that best suits your needs and complete the application process from the comfort of your home.This quick guide explains all you need to know to buy a Term Insurance plan online.

With online term plans, you can purchase your desired coverage over the internet instead of visiting one of our branches. At its core, the function of the policy will remain the same, i.e., providing financial assistance to the family after the policyholder's death. The only difference is that when you buy Term Insurance online in India, you can save a lot of time browsing through multiple Term plans and are empowered to make better decisions.

These are the different types of Term Insurance plans that you can buy in India:

Level term plans

This is the most basic and straightforward form of Term Insurance. It provides coverage for a specified timeframe (for example, 30 years) and only a payout in case of your demise during the coverage period. If you survive the policy tenure, you do not receive any payouts.

TROP (return of premium) plan

This term plan is entirely different from Level Term Insurance. TROP plan comes with a maturity benefit where the insurance company returns the total premium if you survive the policy tenure.

Increasing term plans

Under an increasing term plan, the sum assured of the policy usually keeps increasing annually during the tenure. However, the premium of such policies is relatively higher.

Decreasing term plans

Opposite to the increasing term plan, a decreasing term plan allows you to reduce the sum assured to meet your reducing insurance requirements.

Term plans with riders

These types of term plans come with rider options. You can purchase these riders with your regular Term Insurance plan by paying an additional premium. The add-ons increase your plan's coverage and provide protection against specific unfortunate events.Accidental death cover, premium waiver cover, accidental disability cover, critical illness cover, and terminal illness cover are some riders you can consider for reaping more benefits from your term plan. Also read: How To Buy The Best Term Life Insurance Plan?

The following highlighted are some reasons to buy an online Term Insurance plan:

Cost Saving

On comparing term plans online versus offline, you will find that the former provides insurance policies at comparatively lower premiums. The reason for the premium reduction is direct purchase from the insurance company and not involving an agent. Since there is no agent, you will not have to pay a commission.

Timesaving

Amidst your busy schedule, you might not have much time to visit your local insurance branch and go through the time-consuming term plan application process. This is when online term plans stand tall as a timesaving solution. You can apply for a term plan by following a straightforward process while sitting comfortably at home, saving you much time.

Accessibility

You can purchase a term plan online from the comfort of your couch, office or even while travelling. You can also track your policy details and advancements anytime by logging into your user profile.

Transparency

Buying term plans online provides higher transparency as all crucial details, including features, inclusions, exclusions, premiums, sum assured, and customer reviews, everything is available on the insurer's website. Also read: Checklist While Buying Life Insurance Through An Intermediary

As a first-time insurance buyer, you might need help with the right Term Insurance plan to meet your unique needs. Below are a few essential things that you should know about buying Term Insurance online:

Consider your needs

Before researching the right Term Insurance plan, you should know your needs and reasons for buying the policy. For instance, you might want to protect your family from financial burden in your absence or leverage tax advantage.Also, consider using the sum assured to fund your child's education or marriage. The coverage amount will vary with the reasons. So, make sure to have clear needs and motives.

Determine the amount and tenure

A common concern is determining the term plan amount to secure enough financial coverage for their family. It is advisable to analyse your current and future income, existing debts and liabilities, number of dependents, and inflation to know how much premium you can pay and, ultimately, decide the right coverage amount and tenure.

Analyse and compare multiple-term plans

Request for quotes from different insurance companies when browsing the term plans online. Different term plans will charge different premiums based on age, income, gender, health condition, etc. Analyse and compare multiple term plans online and choose the policy offering the maximum coverage at an affordable premium.

Check reputation and credentials

After shortlisting term plans, check the reputation and credentials of the insurance companies, including customer reviews, experience, solvency ratio, claim-settlement ratio, and many other aspects. You can visit insurers' official websites to learn about their reputation.

Add necessary riders to the plan

Not many people know the importance of customising their term plans by adding the necessary riders. By paying extra premiums and adding riders, you can financially protect yourself and your family from several specific circumstances, such as accidental death, critical illness, etc. Also read: Guide To Age and Premium While Buying Term Insurance

• A Term Insurance plan is a great tool to safeguard your family from the uncertainties of life.
• In this fast-paced world, you can buy term plans online if you don't have enough time to go through the time-consuming application process.
• An online term plan refers to a Term Insurance policy bought online instead of working with an agent or visiting the local insurance branch.
• You can choose different types of term plans, including level term, TROP, increasing term, and decreasing term plans.
• The online term plan application process will help save time and cost while increasing accessibility and transparency.
• To buy the right term plan online, consider your needs, decide on coverage amount and tenure, compare multiple plans, check the insurer's credentials, and choose the required add-ons.