Most insurers Offering Online Term Plans To Tap Its Increasing Popularity

Posted by Ankita G.
2
Jun 16, 2016
132 Views
Image

Term plans are seeing a spurt of 30-40% in its sales on account of increasing awareness. And to tap this opportunity insurers are launching online term plans.

Term plans should be bought by people having financial liabilities as it has high life cover for low premium. Term plans do not have any investment component or maturity benefits that mean if policyholder survives the policy term then he will not get any return on premium.

Although term plans bought online or offline have same basic features but online term plans are 20-30% cheaper because there is no intermediary between buyer and seller hence, insurers save on their distribution cost that is given to agent as a commission and they pass it to the customers.

Seeing the success of online term plans now most of the companies are offering term plans that are especially designed to be sold online. These online term plans are not only cheap but they are also loaded with features.

You can also enhance your life cover by adding additional riders to the life cover for a nominal cost. Some of the popular riders are “critical illness and personal accident. Suicide in first policy year is excluded in term plans whether bought online or offline.

 Though sales of term insurance and total sum assured is going up significantly but total premium earned for insurers is not very significant because premiums are very low.

Comments
avatar
Please sign in to add comment.