How New Age Buyers Are Buying Term Insurance For Cheap

More and more new age buyers are buying term insurance products online. Buying online is not only quick and hassle free, but it also enables you to buy a product at low premiums. However, not all online buyers are taking the full advantage of online buying. Let’s find out whether the new age buyers are informed enough.

Who is Buying Term Insurance Products Online?

A majority of people who are buying term plans online are urban, young and tech savvy, say market observers. Most buyers seeking online cover are within the age group of 30 to 44 years! In most cases, these customers are financially established and their levels of insurance awareness are specifically high. Actuary experts have revealed that most of these buyers are executives who have loans as liabilities. They are the ones who are keen on protecting their families from the uncertainties of life. And, insurance providers too have shifted focus to the online segment, as they are getting good business from the online customers.

The Claim Experience of Online Buyers is better with Online Purchases Owing to the high awareness levels of customers seeking term life protection products online, the claim experience proves to be better from the company perspective. 

When buyers seek plans offline, there is always a possibility that the insured has only signed on the form. The vital details and responses could have been filled in by the agent. As a result, the information could be inaccurate and sketchy. Conversely, when a buyer sources term insurance online, it is more likely that the policy holder has completed the form on his own. Naturally, the quality of information is much better.

Why is Pricing the Key Differentiator?

Well, most other features for offline as well as Online Term Insurance are likely to remain the same. Both would promise to pay out the selected sum assured or the amount for life covers to the nominee in case the policyholder is no more. The key differentiator clearly is the price. According to company representatives, online policies are clearly 30 to 40% cheaper as compared to their offline counterparts. Remember that online sellers do not need to bear any distribution cost. This price advantage is passed on to the customers.

There are Some Flipsides too!

Of course, there are some flipsides too. For instance, the nominee may not be well versed with the online claim settling procedure! He or she may or may not have an agent for help or support. However, the positives clearly outweigh the negatives here. Online purchase of term insurance is a roaring trend and is here to stay.

[Source: https://insurancelifedotorg.wordpress.com/2014/09/14/how-new-age-buyers-are-buying-term-insurance-for-cheap-2/]

Guide to Buy Term Insurance

The birth of a child is a life altering event. Soon after a child is born, parents plan and do things to ensure that the child has the best in life. They ensure that the child joins the best school or college in town and has the best things in life. However, you must have enough money in hand during the key milestones to provide them the best. Also, all of a sudden the bread winner of the family might be no more.

In these kind of situations, a Term Insurance Policy comes to you and your family’s aid. The fixed term ensures that you have lump sum money in hand when you need it the most, and it provides the Assured sum to your family in case of your death. In addition, term plans are the cheapest insurance plans available as there is no investment involved. However, you should know all the policy features in detail to avoid the Claim getting rejected later.

Choosing the Right Plan

Though getting Term Insurance will make life easier for you and your family, choosing the right term insurance plan is a tough job. You must first read the policy documents in detail to avoid problems later. Here are some other important guidelines that will help you in buying the right term plan:

•    You must decide the time period for which you need the plan. Term life insurance plans in India usually provide protection for 10, 15, 20, or 30 years.

•    It’s advisable to buy the policy when you are young and in good health. Also, every insurance company has an age and term upto which one can renew a policy. The age is generally 65-70 years and the term normally is 30-35 years for renewal.
 
•    Companies may offer Riders like accidental death benefit, terrorism death benefit, Critical Illness benefit etc, which may be valid upto a particular age. You must get the ones you need, but they come at an extra cost.

•    Knowing the Exclusions and conditions when insurance amount will not be payable is very important to avoid unnecessary pain during claims settlement.

•    Buying online term insurance plans comes handy when you want to compare term plans from the comfort of your home, ideally using policy aggregator sites. You can compare term plan for minimum Premium and best features before you settle for a plan.

•    Some companies provide the option of converting term plans to other long-established plans like endowment plans or money back plans etc. at a later stage. Consider these to see if they benefit you.

•    Assess your policy every few years. This will help you modify your features and save money on your premiums if your situation in life has improved.

Buy a term insurance policy today and let your family be financially secure when they are struggling with the emotional pain of losing you. Also, you can avoid sleepless nights thinking of what will happen to your family when you are no longer alive to take care of them. However, knowing all the policy features well is imperative to avoid problems later.

[Source: http://www.easypolicy.com/KnowInsurance-A/Guide-to-Buy-Term-Insurance]

When to Opt for an Online Term Plan

The trend of buying insurance online is picking up fast. And, why not! After all, the process of buying online is a lot more convenient than the traditional process of buying term insurance through agents. If you are still not sure whether you should buy term insurance online, read on to know some facts that would help you make an informed decision. 

Buying an Online Term Plan does not Mean there is no Help at Hand!  

Just because you have decided on buying online term insurance does not necessarily mean that there is no help at hand. You can always take the help of an insurance agent. Most online insurers would be happy to refer an agent to you. However, you can also choose to do it on your own. The call is yours.

If You Want to Decide on Your Own, You Should Buy Online

if you think you knows enough about term policies, buying online would be the easiest route for you. There is no unwarranted interference here. You can make your own assessments, with the agents trying to influence you with suggestions that are in their best interest, rather than yours. When you buy online, you can choose your option purely based on your personal judgment.

Online Term Plan Is Cheap—In Most Cases!  

You must have heard that a term plan could be up to 40 percent cheaper than its offline counterpart.  Well, that is true! And this does not mean that you would be offered anything less in terms of service quality or claim settlement process. It is cheaper because the distribution costs are low and, in most cases, agents are not involved.  Your premium amount would also depend on your profile as a buyer. For instance, if you are around 25 years of age, have a good job, a strong academic record, and a comprehensive health insurance policy in your name; you are likely to get a term plan at high discounts. Such a profile is considered to be a low risk candidate from the insurer's point of view. Hence, they do not have a problem in offering hefty discounts and rebates on premiums. However, if you are above 45 years of age and happen to be suffering from pre existing illnesses, the rebates may dwindle.

So, seeking the assistance of an agent would be advisable, if you wish to buy an online term plan at a later stage of your life. The best time to start, however, is to start early.

Online term policies offer interesting variations these days. Therefore, it would be wise to assess your options carefully.

[Source: http://onlinelifeinsurance1.weebly.com/blog/september-09th-2014]

A Primer Which Helps You Understand Term Insurance and Its Importance

Term insurance, a kind of life insurance, is an inexpensive way in which you can get coverage for a specific period. You will have to pay premiums which are at fixed rates for the relevant time period. Term life insurance differs from permanent life insurance or whole life insurance which offers coverage for a lifetime for premiums which are paid at fixed rates. This form of insurance is similar to other types of insurance. Usually a term insurance will range from 1 year to 30 years with 20 years being the most common term. The initial cost of term insurance is lower in comparison to permanent insurance.

Fund expenses easily
Term insurances are cheaper as you will be paying only for a lump sum amount which your beneficiaries will receive during the term of the policy on your demise. If you have started a family and you have a limited budget term life insurance is the ideal choice. If you need to fund your teenager’s college expenses, you can consider a term life insurance. The insurance policy will help you to meet the expenses during the college years after which you will no longer need the coverage. In such a situation, it is advised that you opt for term life insurance which will help you to meet the financial expenses.

Converting the policy
at the end of the term, you can renew your policy. When you renew the policy, you may have to appear for a medical test and answer some questions which are related to your health status and lifestyle. With good health and healthy living habits you can expect to re-qualify for the policy at reasonable rates without having to overspend. Most insurance companies will allow you to convert a term insurance into a permanent policy.

Two important choices
a term life insurance is of two kinds, the annual renewable term and the level premium term. The annual renewable term insurance will offer coverage for a year as you renew the policy annually. The level premium term insurances offer coverage for multiyear periods such as 5 to 20 years or more. In case of annual renewable term insurances you will have to pay low premiums initially but with time the premiums may become costlier. In the case of level premium Term Insurance Plans, the premium rates remain fixed. If you want to insulate yourself from changes in premium rates, this is the right choice. You can enjoy peace of mind as the rates of premium remain fixed.

Points to bear in mind
a term insurance will not pay anything if the insured survives the term period. There are certain factors which you should consider before you opt for this kind of insurance. Ascertain the duration of your insurance need and compare it to the term period which is guaranteed. Compare the quotes which are being offered by multiple carriers. Before you narrow down on the insurance carrier, check his financial strength. It is an important factor which will decide whether you can convert your term insurance policy to a cash value policy if need arises. Evaluating the banded rates offered by term life insurance carriers is important. 

[Source: http://onlinelifeinsurance1.weebly.com/blog/a-primer-which-helps-you-understand-term-insurance-and-its-importance]

Online Term Insurance India - How to choose to a Term Insurance Plan

Online Term Insurance India - How to choose to a term insurance plan from Gaurav Kadam

Click to know more Online Term Insurance India

How to choose to a Term Insurance Plan

In the current scenario across the world, term insurance policy has become one of the subjects most talked about among leaders. Many financial advisors around the globe have hailed the term plan as the brightest form of insurance. It is because it provides a very large cover at lower price. Whenever a person buys a money-back policy or an endowment plan or any other plan with same coverage, the premium of that term plan is very small as compared to the money shelled out by the person insured for any other policy. Moreover, it may also happen due to the absence of investment component in a term plan. Thus to cover the risk, the whole premium is utilized.

The required amount of cover

the main purpose served by life insurance is to give the policyholder a sufficient amount of money to be exchanged with the person’s income, if he dies. The following are the major aspects which a person’s life insurance serves:

• Necessary liabilities such as loans and debts
• The primary monthly expenses outlined by the person’s family
• The long-lasting expenditures such as education of his children as well as their marriages

As a result, the person’s family lives in peace for the entire life. But, if the life insurance is not enough, then the whole idea of a Term Plan would be fruitless.

The tenure for a cover

the duration of time till which the term insurance is required is as necessary as the sum invested for the cover. An insurance policy generally sustains as long as the person is willing to work. Until a few years back, the standard for duration of policy was 60 years. But choosing 60 sixty years does not include a person’s late marriage in 40s or having babies at a much later age. It may also depend on the economical situation faced by the person who is insured. So after surveying these facts, the experts have decided upon 65 years, as the maximum age required to cover the term insurance.

It is never a judicious decision to pick a short-term policy of like 15-20 years. It may end even before the person reaches 50. If the policy ends below 50 years of age, then the premium drafted will be very low. For a man in his 40s, the requirement of a life policy is at needlepoint. If the man goes for a new policy at that age, then it will create a big hole in his pocket. The cover will also exclude the man if his health is not good. Therefore, a person must always select a cover for which the tenure can be handled easily.

[Source: http://onlinelifeinsurance1.weebly.com/blog/how-to-choose-to-a-term-insurance-plan]

Four reasons why you should buy term insurance policy online

There are tonnes of insurance policies available in the market today. But the question is: which one to go for? However, this question should not pop up in your mind if you have been reading news lately.

Read this headline carefully: "Investors have lost Rs. 1.5 lakh crore due to mis-sold insurance policies".

The reason why the above headline needs to be read carefully is not to notice that there has been mis-selling from the insurance agents, but the sheer number - 1.5 lakh crore worth of our money has been wasted in dud insurance policies.

For most of us, it's a no brainer that only term insurance is the true meaning of life insurance.

If you are looking to buy term insurance, you would have two modes to do that: online and offline. The online form is increasingly becoming popular because of several reasons. However, there still seems to be a bit of fog left in the path of buying online term insurance.

Let's look at some of the factors based on which you can choose the mode of buying term policies that suits you best.

1. Cost

Cost is a major factor while going for term insurance. A lot of online term plans are cheaper by 50-70 per cent (or even more) compared to their offline counterparts. Now, this is mainly due to these two factors:

• There is no intermediary involved in the process. You deal directly with the company and hence, the company's costs are less as compared to the offline mode.
• Companies often believe that the mortality risk is lesser in case of online consumers than offline. As a result, they are ready to offer a lower premium in the online mode.

Industry experts believe that such low premiums can bring about a price war in the insurance sector similar to the one in the telecom space. It has to be seen whether these premiums are to sustain in the future. Now, what if you had bought a policy at, say, Rs. 20,000 three years ago and now you get it for Rs.15,000 for the same assured sum and tenure.

There have been many cases where consumers complained they had bought online term insurance plans in India at higher prices just a few years back. The answer is pretty simple: stop paying premium for the existing policy and opt for a cheaper one; but do make sure that other factors are satisfied too.

2. Flexibility

The online mode definitely gives you more flexibility and more options in choosing the required term plan. However, you need to do a bit of homework while buying a policy online since here you do not have the privilege of an agent helping you. This is also a blessing in disguise as in the offline mode you might get a bit lazy and leave it to the agent to the fill the form. There have been cases where agents have misplaced customers' information while filling the form - either intentionally or by mistake. This could prove costly during claim settlement.

3. Claims settlement

If there is a concern in the consumer's mind while buying term plan online, it is this. Also, this concern is very much justified since there is no proper claims settlement data to be sure of this mode. This is because companies do not segregate online and offline claims ratios. Hence, you cannot be sure of exact number of claims settled online.

However, if you have disclosed all your information rightly, there is no reason for you to be worried about the settlement of your claim. Insurance regulator IRDA has imposed stringent rules on insurers, with one of them being that they need to reject a claim (if any) only within 2 years since the policy was purchased. In case your claims are rejected even after proper disclosure of all necessary information, you can approach an insurance ombudsman for justice.

4. Sum assured

The average sum assured tends to be higher in the online mode, because of the lower costs involved as stated earlier. It can also be due to marketing skills of insurance companies. It is quite common to see an ad similar to this: '1 crore term insurance for just Rs.500 a month or Rs.17 a day.' More often than not, you would be tempted to purchase a Rs 1 crore cover even when you don't need it.

Also, for online policies, insurers call for medical tests only if the sum assured is more than an minimum amount, say Rs 50 lakhs or so.

Conclusion

Based on the above factors, the online mode clearly stands out. It is recommended, however, to calculate the amount of insurance required before purchasing a policy. All the facts related to family or personal health should be declared (even if it means higher premium).

Remember, insurance is based on the principle "uberrima fides", meaning utmost good faith.

InvestmentYogi.com is a leading personal finance portal.

Disclaimer: All information in this article has been provided by InvestmentYogi.com and NDTV Profit is not responsible for the accuracy and completeness of the same.

[Source: https://blogterminsurance.wordpress.com/2015/09/09/four-reasons-why-you-should-buy-term-insurance-policy-online/]