Buying a term plan online is cheaper

Term insurance is the fastest growing segment in Indian insurance today. Term plans are feted far and wide for their high returns and low premium payments. They are the most reliable insurance tools that yield a large corpus of money for the policy holder’s family. Apart from paying for daily expenses, they can also pay for children’s education, their marriage and also future medical needs.

However, most people entrust insurance brokers with the purchasing of term policies. Instead of relying on a broker (who may not choose the correct policy for you), you can purchase an online term plan within minutes. Buying term insurance over the Internet has four major benefits, as outlined below:

1. Online term insurance is cheaper.

Buying an online term insurance plan works out cheaper for you. Since there is no insurance broker involved, the insurance provider passes on a component of the broker’s commission to the customer. Also, insurance companies perceive online term policy holders as lower risk candidates than those who purchase their policies offline.

2. You save time in browsing for the right plan.

Though there is no substitute for diligent research for the right term plan, it is easier to do so online. If you were to physically study hard copies of insurance policy documents, you would be left with stacks of papers to read through! Instead, you can quickly browse through the benefits of recommended online term insurance plans. It is suggested to study lists (such as Top 10 Life Insurance policies) put out by business newspapers and magazines every year to get an idea of recommended policies. You can also look for recommendations from experts and other users for the policy of your choice.

3. You can calculate the sum assured and premium in minutes.

Instead of plodding through countless documents and sitting with a calculator to arrive at the sum assured and premium calculations, you can simply use an online insurance calculator. This is a handy tool offered by all insurance providers’ websites which give the calculation of sum assured, premium and tenure within seconds. You can also manipulate your inputs to arrive at a desired sum assured and premium payment.

4. There is no paperwork involved.

When you purchase an online term insurance plan, you do so within minutes. You can purchase the policy using the normal payment channels (credit/debit cards or NEFT, as the case may be) and the insurer sends a confirmation of the purchase at once. The policy is deemed purchased at this point. The policy document is then emailed to the policy holder. The insurer also sends reminders about renewal dates, increase in premium payments, etc. Hence, the entire process follows an electronic route and there is no paper trail involved.