Should you buy online term life insurance policy ?
“Should you buy online term life insurance policy”, answer is “Yes”.Why because it is cheap and convenient.Online term life insurance policy is 30-40% cheaper as compared to one bought offline version. With increasing trend of online shopping in India, buying term insurance policy online is no difficult than shopping on online portals like amazon or flipkart.
Online term policy is priced lower, so one might think some features or benefits must be missing in it. But online term policies are no different from standard life insurance policy.You will get same benefits,service and tax benefits , which you would have got on buying offline policy from an agent.
Why lower premium is changed for online term life insurance policy ?
When you buy policy from an agent, insurance company has to pay commission to insurance agents.By buying policy online the middlemen are avoided, so insurance pass on the commission paid to agents to you in form of reduced premium.This is like buying vegetables directly from farmer, rather than buying from local market to get discounted rates.
Insurance companies categorize online term insurance buyers as low risk. Online term insurance buyers are assigned low risk as they assumed to be educated and well informed to take better care of their health, which reduces chances of early death. This lower risk further reduces premium on term insurance policy.
Why is buying online term life insurance policy convenient ?
Buying term insurance is straight and simple.Steps are listed below
Step 1:Select sum assured,policy term,age, gender,premium paying term & frequency of payment and specify if your are tobacco user(Yes/No).Quote will be generated based on this basic details.
Step 2:If you find the premium acceptable, then fill in your personal details,answer few questions related to your occupation, lifestyle, health and your family’s medical history. You need to fill nomination details and accept the policy terms & conditions.
Based on the details provided in step 2 there might be increase in premium. You should not hide any details, as it may result in rejection of claim.
Step 3: Pay your premium online and you will receive.
Step 4: You need to email,post or upload self attested documents like salary proof,residential proof,photo etc.
Step 5: One does not usually have tom undergo medical test if you are under 45 years of age ,a non-smoker and if the sum assured is less than Rs 50 lakh. Medical test may be required on case to case basis depending on your health and your family's medical history.
For example: A 30 yr old individual (non smoker) ,who buys a 45 lac policy will not have to undergo any medical test.
You will be issued policy by insurance provider on receipt of policy and results of medical test(if applicable).
There can be increase in premium increase if anything comes up in your medical test.But there is free look up period of 30 days in online insurance against 15 days provided for one bought from agent.You can cancel or make changes in policy within this free look period.
If you opt to cancel the policy then the insurance company will refund the premium paid after deducting insurance charges proportionate to period for which insurance was provided ,stamp duty charges and costs for medical test.
Buy term life insurance policy cover based on future financial needs of your family and your liabilities.Buy from insurance provider with good claims ratio and do not hide any details will purchasing the policy.