What is online Term Life Insurance?

A term insurance plan is a plan that is sometimes referred to as the most basic form of life insurance. Under such plans, applicants enter into a contract with an insurer that states that the insurer will provide life insurance cover for a fixed period of time to the insured and the insured will pay a premium for such facility. In case the insured dies while the policy is still in effect, the beneficiaries of the insured are paid the sum assured. However, if the insured person survives the policy then, in most cases, no maturity benefits are paid.

Key Features of Term Insurance Plans:

Affordable

Compared to other life insurance products, the premiums for term insurance are lower while the coverage or sum assured offered is higher thus making it more affordable for everyone.

Provides tax benefits

According to the income tax rules, term insurance premium payment can be declared to claim tax benefits under section 80C and section 10 (10D).

Flexible benefit payment options for beneficiaries

Payment of death benefits may vary from one insurer to another but there are some insurers who offer interesting payment schemes where the beneficiary can take 50% of the benefits in a lump sum and receive the remaining 50% as a monthly income.

Options of riders

You can choose various riders that you can apply to your term insurance to enhance the benefits of the policy. These can be anything from disability riders to regular income riders.

Buying term insurance online

Term insurance plans are available online at lower premiums. With the advent of the internet and its penetration in India, lots of insurance companies have smoothed out the process of applying for insurance and turned some of their products into online term insurance plans. This means that you no longer need to decide on a plan and then wait for someone to come and give you the application forms. You can just go in for an online term plan and apply for it via the internet.

Easy renewal

Sticking with the theme of online purchase options, some insurers will also provide facilities that let you renew your policies online this negating the need to travel to the insurers’ offices.

Easy to pay premiums

Premiums no longer need to pain in one shot. Most insurers offer options to make payments towards premiums for online term insurance on a yearly, half-yearly, quarterly or even monthly basis.

Source: https://www.bankbazaar.com/insurance/term-insurance.html