The best way to provide financial security to your family is by investing in a term plan. Term plans are pure life covers that pay the benefits to your nominees in case of your sudden absence during the policy duration.
Because term plans do not offer any maturity or survival benefits, the premium is lower than regular life policies like endowment or money back plans. Buying term insurance online has several benefits, which include:
- Opportunity to compare different plans
An insurance agent works for a particular insurance company and tries to sell policies offered by that insurer. So, you will not be able to analyze various term insurance plans provided by all insurers.
It is easier to make a wise choice when you do a thorough comparison of different products offered by many insurers. You can review the features, inclusions and exclusions, terms and conditions, claim settlement ratio, and premiums for multiple policies to make an informed decision. All this information is easily accessible on a single page with a few clicks.
- Cost-saving
When you buy term insurance online, you can reduce the premium. Generally, the premiums depend on factors, such as your age, the sum assured (SA), health condition, lifestyle, and policy tenure.
If you buy the term plan through an agent, the insurance company adds his or her commission to the premium, which raises your overall cost. Insurance companies can eliminate such commissions when you buy term insurance online, allowing you to save money. Additionally, the administrative costs and other overheads are lower when you opt to purchase online, which further decreases the cost. Over the years, you can save a significant amount.
- Security in doing digital transactions
The Coronavirus (COVID-19) pandemic has modified the traditional sources of making payments. An increasing number of people are choosing to pay online for their purchases. When you buy term insurance offline, you may have to pay via a check.
You can pay for online term plans via multiple payment options, such as Internet banking, credit card, or through payment wallets. Insurance companies provide secure payment gateways, which ensure that you do not compromise on confidential information, thereby eliminating the possibility of identity theft or losing money. Moreover, you can complete the transaction and receive confirmation without delay. This ensures that you are able to claim any tax benefits on time.
- Convenience
Buying term insurance online is a quick and convenient option. You can complete the procedure within minutes from the comfort of your home or office. This is especially advantageous during the pandemic when it is advisable to venture out as less as possible and avoid calling agents at home.
Online term insurance plans offer multiple premium payment options, such as monthly, quarterly, semi-annually, and annually. Therefore, you can select an alternative that suits your financial situation to avert delays or a liquidity crisis.
You can buy a term plan online by submitting some basic details, such as your name, age, gender, SA, and policy period. You can also take the help of an online calculator to determine the approximate premium that you will pay for the chosen plan. Once you finalize the plan, you can submit the required documents through the insurer’s website to finish the process.
Most insurance companies offer such policies, and therefore, it is important that you understand the term insurance plan meaning before buying it. In addition to the basic coverage, you can include riders like waiver of premium, permanent disability, and critical illness cover. You can explore these options and choose riders as per your requirements to maximize the coverage.