A term life insurance is a pure protection plan that provides financial assistance to the beneficiary in case of an unfortunate circumstance to the insured.
Since there is no maturity benefit for a term life insurance plan, do not consider it as an investment. Your family will be in safe hands; if something ever happens to you during the policy term, the plan coverage will financially support them.
We like things that are easy, fast, and reliable. So, when we think of the complicated process and formalities related to opening a term life insurance account, we may feel a little lazy. Besides, it may make us feel a little shaky.
The digital advancement of the 21st century means that you can do almost everything online now. You can buy even term life insurance plans online in a few easy steps.
Why Should You Buy a Term Plan?
We all know that if you survive the term plan policy’s tenure, you will not receive a maturity or survival benefit. Then why should you buy a term plan?
Term insurance benefits are plenty. These reasons are:
- Low premium: Term life insurance is a pure protection plan. It is not considered an investment vehicle. As its sole purpose is protection, the premium amount is very low. You can get a ₹1 crore term life insurance policy under a premium of ₹7,500 per year.
If you want higher or lower coverage, simply use a digital term insurance premium calculator to determine the coverage and premium that fits your budget.
- Financial security: You might have a responsibility towards your dependents. A term life insurance plan of, say, ₹1 crore will provide financial assistance and take care of your family in case of unforeseen circumstances.
- Flexible: You can change the term insurance plan as per your need. You can either increase or decrease the coverage and add riders, or added benefits, like severe illness coverage. Hence, they are flexible.
How Can You Buy Term Insurance Plan Online?
While considering term insurance can be daunting, purchasing it has become easy. Earlier, our parents used to stand in a queue for hours to deposit term insurance premiums. Now, you can take the plunge and complete the process in minutes without waiting.
This is how you can buy a term insurance plan online.
- Visit a reliable term life insurance provider’s website. It will have several term insurance products on display. Find the section that deals with term life insurance. Once you have entered this segment, click on the “Buy Online” tab.
- You will now be directed to the online buying portal. Here, you will see a digital term insurance premium calculator. Your term insurance premium will depend on the sum assured and your age as the insurer.
Once you fill in your age and the sum you want to assure, the term insurance premium calculator will show the premium amount that you must pay to buy the insurance.
- Next, you will have to submit your documents. The documents generally required are income proof, address proof, identity proof, etc.
Submit scanned copies of all the documents. Some insurance providers may ask you to hold the original document and stand in front of your webcam for validation.
- A medical test is not mandatory in the case of all term life insurance policies. However, if you select a high assured sum, a medical test can be mandatory. You will have to do a complete body check-up and submit the results.
- The term insurance premium amount will depend on your age and health. If you are a non-smoker and teetotaller, it will get reduced. Once you submit your health report, the insurer will finalise your term insurance premium amount.
- Next, choose your preferred payment option – you can use debit or credit cards, UPI, other digital payment options, etc.
- Once the payment is complete, you will receive a payment acknowledgement from the term life insurance company.
- However, the approval from the underwriters usually takes a few days or weeks. Once they evaluate the risks involved and finally approve your application, the term life insurance company will revert.
- The insurer will email you a soft copy of the policy document. The same will be available under your profile when you log onto the insurance company’s website.
Before you zero in on a term life insurance policy, research plans that will best suit your priorities. Get an estimate of how the premium will fit within your budget, using a term insurance premium calculator.
The internet is not just a mere provider of information now. It has become a key distribution channel for crucial services like financial planning, retirement planning and insurance. We are depending less on brokers today as the internet ensures a transparent, fast, and effective mode of insurance delivery. Detaching from brokers has helped insurance companies to provide discounts on policies sold online.