With the internet becoming a routine of our life, the number of net-savvy insurance buyers is gradually increasing. Non-life insurance products such as personal accident, health, motor and travel have fuelled the growth of online insurance products. Now, while a similar trend is yet to gain substantial momentum in life insurance, online term plans have been in particular gaining popularity. As per the statistics, one online term plan is bought every 5 minutes in India! The online quote systems and price comparisons on portals like trucompare facilitate the insurance buyers to buy a term plan easily and as best suited to their needs.
Aegon Religare was the first insurance provider to introduce an online term insurance plan called ‘i-Term’. Today, almost every insurance company from LIC to a bajajallianz insurance offer online term plans.
Now, if you are wondering if you should buy an online term plan, how safe it is compared to an offline version and what is the process, here is a complete guide to simplify your decision.
Reasons to Buy
1. Convenient and Quick: One click, anywhere and anytime buying – that’s what an online term insurance plan is about.
You can do term plan comparison – browse, research and compare the quotes, features and benefits of the online term plans instantly across the websites of different insurance providers.
You really don’t have to contact or follow up with any insurance advisor(s) or fear misselling of any kind.
You can scan and submit the KYC documents.
You can pay premiums by choosing any of the multiple payment methods available – credit card, debit card, net banking and even IVR (Interactive Voice Response).
The policy is processed and issued quickly, so your life cover does not get delayed much.
You can renew the policy online as and when the premium due or if it lapses.
2. Cheaper Cost: The premium of online term insurance plans is about 30 – 40% cheaper than the offline plans. There is a misconception pertaining to economical cost of online term plans, though. Most customers believe that lower the premium, the higher is the probability of a claim rejection or that there is some catch. Well, that’s not true. There are several reasons why online term insurance are more affordable. First, there is no agent commission or channel sales cost involved in the pricing. Second, insurers consider an online customer a low-risk profile – he is educated, earns well and prefers to take a life cover. Third, since an online transaction is paperless, the processing and administration cost also comes down significantly for the insurer.
3. Transparent Process: One of the major problems that an offline insurance buyer faces is transparency – right from meeting(s) with the advisor to filling up the form. You usually rely on the advisor’s advice to understand the key offerings of the plan. There are also chances that your personal details could be misspelled or mentioned incorrectly in the physical form. Whereas, in an online plan, you would be doing all the formalities on your own. You have all the information at hand to make a sound decision. There is a step-by-step procedure to guide you, so the error rate is considerably low.