Why Insurance Providers Charge Less For Online Term Insurance Plans?

Term insurance should be defined as the perfect life insurance product which everybody needs. It is pure insurance and nothing else. It serves one single purpose that you are not there for your family to support them financially your term insurance policy would be there. So when you are building your financial plan you need to include the money that should go into buy a term insurance also. If you are the sole bread earner in your family you financial plan would have some small objective inside it like getting your kid study in a good medical college or a micro plan for money that you might need to spend on your daughter’s marriage or you might have a micro plan for your retirement , all these plans to reach their end goals require you save money over a period of time .In a case if you are not there for all these your term insurance plan should have the ample amount of cover to take care of all these.

For all these to happen in a right fashion you need to buy a term insurance plan calculate your Policy by Term Insurance Premium Calculator. but how to do it. Buy from your agent friend or do it online. Your insurer charges you are premium for it based upon factors like you yearly income , your age and taking into consider your health factors so based upon these factors if you try to evaluate your insurer should be charging you the same money whether you buy it offline or online. Though buying online has it own benefits like you get to see multiple offering from the different insurers at one go and you can easily compare plans based upon features but other than that online has one added benefit.

The time when online term insurance was launched in India this was never a factor that was considered but later on it became a part of it. But the question is what that extra benefit is? Generally speaking insurance companies have now launched separate plans for online customers too. Which means all these plans can’t bought from your regular insurance agent. Online term insurance are actually cheaper than their offline variants but the question is why is it so?

So when a insurance company insures you it actually takes risk on your behalf and the insurance underwriter calculates the premium based upon the risk involves by compare term insurance plans online. Since it is always thought that online customers have more access to knowledge and health facilities so the underwriter thinks that the risk associated with him or her is always less so the online customer gets incentivized because of that and you pay a less premium for it compared to if you buy the same cover from same insurer offline.

Sponsor Ads

• Ad Space Available - Rent it Now!

Report this Page

Created on Dec 31st 1969 18:00. Viewed 0 times.

Share on APSense

Comments