The Coronavirus (COVID-19) pandemic has resulted in drastic changes across the globe. Many believe that things may never return to the pre-pandemic situation. Therefore, if you are not already covered under life insurance, now may be the right time to buy one. Even if you have life cover, relook at the adequacy of the coverage to ensure if it matches the financial requirements at your current life stage.
Conventional life insurance plans include unit-linked insurance plans (ULIPs), money-back plans, and endowment policies. However, these policies come at higher premiums, as they provide maturity benefits along with life coverage. Insurers also offer term plans to To encourage more people to buy life insurance.
In simple words, the term insurance plan meaning is a life policy that pays the benefits to your nominees in case of an unfortunate event during its duration. It is a pure life cover that generally does not offer any maturity benefit. So, you can secure higher coverage for your loved ones at an affordable rate.
Traditionally, when you wanted to buy life insurance, you would seek help from an agent. However, due to the advancement in technology, it is now possible to buy the policy online directly from insurers’ websites.
Some people are wary of purchasing online; however, it is a safe option. Here are three reasons why you should buy term insurance online:
- Opportunity to compare and buy
Several insurance companies offer term policies with different conditions and at varying premiums. Comparing different plans offline is a long and tedious task. Practically, it is impossible to do that. Moreover, an insurance agent may be associated with one particular insurer, which means you may not receive information about other term insurance plans. When you opt to buy an online policy, you can easily compare different plans with a few clicks of the mouse. The entire procedure is fast and hassle-free. So, you can make an informed decision by buying a plan that most appropriately suits your family’s requirements.
- Lower premiums
Often, the premium on online term plan is lower than offline policies. However, the features and benefits of online plans are the same as available when you buy an offline policy. An important reason why online plans are more economical is the elimination of insurance agents, which saves insurers huge amounts paid as commissions. Additionally, companies earn significant savings from reduced overheads and administrative costs. All these cost-savings are passed on to the buyers, which makes online plans more cost-effective.
- Secure and quick transactions
A huge concern when you buy term insurance online is the security of the payment gateway. However, insurance companies ensure that your confidential information is protected and not misused. Additionally, you can pay the premium using different options, such as Internet banking, debit card, and credit card.
The procedure to buy online term insurance is easy and convenient. You simply need to provide information, such as your name, age, gender, income, the sum assured (SA), policy duration, and health history. After giving the required details, you can upload the basic documents via the insurance company’s website and choose the payment mode. Once the payment is completed, you will receive instant confirmation via email and a receipt for your records.
When you are looking to buy a term plan, you need to consider a few factors. These include choosing adequate SA to ensure your family does not face any financial difficulties in your absence, opting for the right policy duration, and availing of riders like permanent disability, waiver of premium, and critical illness as required. It is also recommended that you buy the policy from a renowned and reputed insurance company so that your dear ones do not face any trouble in the future in case they need to file a claim.