Why should you buy term plans online?

With the advent of “internet” people can now buy goods, commodities, insurance policies, investment funds and much more through online services anytime and from any part of the world. Gone are the days when people used to visit insurance firms, collect information leaflets, call up agents, fill up forms, submit documentation manually at the insurance centre etc. The entire process seemed to be a tedious task. But today buying a life insurance plan policy has become very easy with online purchases. In recent past, lot of insurance companies have launched their insurance plans online.

Term plans are the best insurance plans of modern day times that are capable of giving higher coverage at optimal costs. But since the companies and agents don’t get many profits from these plans very few market these low cost offerings.  Therefore, the best way to buy such beneficial policy would be purchasing them online.  In recent years, lot of insurance companies have launched their online term plans. These plans are easy to buy and cheaper than the normal term plans sold by few agents for the valued customers.

Insurance companies don’t have to pay agents commission for online plan which helps to cut down the cost of insurance. It’s a genuine tendency that online purchaser would be educated and better off in health terms than average Indian therefore, it works in the favour of the policy buyer and the premiums are comparatively low.

To buy online term plans all you need is to submit the application online through insurance company’s web portal. For an average life cover of 1 crore your premium range between Rs 7000 to Rs 8000 annually and the cover starts immediately once the payment is done online for premium. Some companies give the benefit of no medical test procedure for term plans being purchased online.

Some Advantages of online term plans are as follows:

•Easy buying: The process of buying online term plan is hassle free with no agent interference in decision making. Most of websites are user friendly and entering information is fairly straight forward.

•Cheaper costs: No agent commission brings down the cost by 40-50%, so buyer gets much higher insurance cover for the premium he or she pays.

•Time saving: Online purchase will surely save your time on visiting companies, collecting information leaflets, filling up forms etc.

•Special Discounts: Various companies offer special discounts for women and non-tobacco users.

Once you purchased plans online documents like identity proof, address proof, PAN, etc. needs to be submitted. Most insurance companies send their representative to collect the documents. Medical check-up of the insured depends on the age and the sum assured.

THE CLAIM

Just in case the policy holder is to meet an unfortunate incidence and perishes from the world; the nominee has to directly approach the insurance company. Every company will have pre-set procedure for the claim. It is advisable to make your nominee aware about these things. In order to initiate the claim process for online term plan policy, inform the insurance company about the death of the policyholder over phone or e-mail. One should prefer online communication as they can act as a proof in case of any issues during the claim.