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Here’s everything you need to know about buying term insurance plan online

Thursday, March 23, 2017 23:00
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Many of us think about buying a term plan, but very few of us know about the benefits of purchasing a term plan online. So read on to know how buying a term plan online can be beneficial for you.

As the country witnesses a surge in the number of people shopping online, the growth driven eCommerce industry now also lets you shop for the best insurance plans online. Gone are the days when you had to rush to the bank or make those constant calls at the various financial institutions asking for that one life insurance policy that would cost you lower premium and also help you safeguard the well-being of your family.

Out of all the life insurance policies available online, term life insurance or term insurance is much easier to understand and also provides comprehensive coverage at an affordable premium which makes it one of the best life insurances policies offered in India. You can opt for a term insurance plan online as they are 60% cheaper than the plans offered offline. But before helping you understand why you should buy a term insurance plan online, first, let’s understand what a term insurance plan is and why you should avail the same for your family.

What is Term Insurance?

Simply put, a Term Insurance plan is a low cost life insurance plan that provides financial protection to the beneficiaries of the policy holder in case of his death during a specific period of time. In short, if the insured dies during the policy term, the beneficiary who is usually a blood relative receives a lump sum amount from the insurance company which is usually termed death benefit.

Term insurance plans are specially designed for individuals who are worried about the financial stability of their family in case they die or become critically or terminally ill. Term insurance provides a specific amount of coverage for a specific period of time. For eg. Ram purchased a term life insurance policy of Rs. 1 crore for 30 years at a yearly premium of Rs.7000 and if Ram dies any time during those 30 years, then his beneficiary is liable to receive the sum assured in a lump sum amount or on a monthly or yearly basis.

Note:  If the insured outlives the term, then the premium paid earlier is not guaranteed and the insured will have to forgo the premium paid. Remember, Term Insurance policy is purely a death benefit policy.

Benefits of Buying Term Life Insurance Plan

  • Term life insurance policy is simple to understand as you know the amount you are paying and what your beneficiaries will receive on the account of your death.
  • The premium for term life insurance plan is low since it only covers financial risk and there is no investment component covered.  Also, the premium remains fixed and does not increase under any circumstances.
  • This is the best policy to purchase to meet any financial obligations, such as repayment of a home loan, car loan and personal loan.
  • Policy term can be for a term of 5 years up to 60 years.
  • The minimum age to buy a term insurance plan is 18 years and maximum age limit is 75 years or 85yrs depending on Insurance Company chosen.
  • One can avail coverage from 25 lakhs up to 5 crore and above.
  • The premium paid is also exempted from taxation up to a maximum of 1.5 lakh under section 80C of the Income Tax Act, 1961 and also the amount that the beneficiary receives is tax exempted as per the section 10(10D) of the Income Tax Act, 1961.
  • Premium payment mode can be on a monthly, yearly or a lump sum basis
  • Term insurance plan can be purchased with additional riders such as waiver of premium rider, permanent disability rider, critical illness rider, accidental death benefit rider, women critical illness rider and accidental death benefit rider.
  • The insured has an option to choose whether on the account of his death the nominee should receive a lump sum amount or monthly or yearly payments.

Why should you Buy Term Insurance Plan Online?

In India, there are a host of companies offering term insurance plans online. As constantly following up with your agents or bank people can be a humdrum task, a lot of insurance companies now employ people specially to solve your problems on your behalf.

  • Buying term insurance online is convenient as it saves your time, money and effort.
  • You can easily compare term plan policy by various brands online and this is free of cost.
  • You can look for the best term plan offered by various leading brands in less than a minute and fetch the best deal for yourself by getting a good term plan at a fairly affordable price.
  • You can also look for additional riders covered by various brands on the same amount of sum assured.
  • Being IRDA registered, online insurance portals provide you with all the correct information that might help you choose the best policy for yourself.
  • Online insurance companies give you a detailed brief about the product, thereby making it easy for you to choose the best term insurance policy.
  • You also get an idea about the claim settlement ratio of the insurance company and other services offered by them.
  • No long documentation process and the policy is delivered right to your inbox, before it reaches your doorstep.
  • A few insurance companies also provide you expert advice online and you can easily get in touch with the support team by just dropping a mail or calling the customer care department.
  • Online insurance companies also offer top-notch after sales service which is free of cost and also doesn’t involve any paperwork which means that, if you need to settle your claims without any hassle then all you need to do is just call them and take them through your problems.
  • Buying term insurance policy online means a fast and safe mode of payment which means you can pay premiums instantly using net banking, debit card or credit card.
  • While buying a term insurance policy offers you all the above benefits, all you need to do is make sure that you opt for a good plan and pay the premium on time.

So what are you waiting for? Start building a safe financial future for your family by availing the best term plan as per your budget and requirements.

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