Most insurers Offering Online Term Plans To Tap Its Increasing Popularity

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.
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