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The life insurance industry in India has evolved over the years. There are several unique life insurance plans available to cater to our diverse needs. If there is one thing that stands apart in terms of popularity, it is the inclination towards online insurance purchase. Most of the renowned insurers in India now offer a wide range of life insurance products online. They are utilizing the benefits of online platforms to reach policy buyers.
Protecting your loved ones' lives under term insurance is crucial in the current scenario. But before you proceed to buy a plan, you must know why buying term insurance online is worth it.
Protecting your loved ones' lives under term insurance is crucial in the current scenario. But before you proceed to buy a plan, you must know why buying term insurance online is worth it.
Benefits of Buying Term Insurance Online
1. Ease of Comparing Term Plan Benefits
You rarely buy what you do not know about. The same holds true when buying a term insurance plan. If you are new to the idea of life insurance protection, you first want to know more about why buying term insurance is important in life.
The traditional way to ask for such details is to call a local agent or visit an insurer's office near you, which takes a lot of time. Think of the traditional way of doing the same – you would call multiple agents for meetings to discuss different term insurance plans, make notes of the plan benefits, and then think why buying term insurance is needed in life.
One reason why buying term life insurance online makes sense is the easy access to information about various term plans. You can search for various term insurance plans online as per your convenience, which facilitates quick comparison. This way, you can move many steps towards ensuring financial protection for your family in less time. The hassle-free purchase is a reason why buying term insurance online is highly preferred by most people these days.
2. Comparatively Lower Premiums
The availability of online term insurance plans mostly seems like a trend backed by the Internet. But it is much more than that. By switching to the online mode, you choose to deal with the insurance company directly. There is no intermediate agent or advisor involved who can influence your policy purchase decision.
Your decision to buy a term plan online helps save on the distribution cost, commission, and various other expenses at the insurer's end. In return, they pass on the savings to you in the form of lower premiums.
If you seek answers about why buying term insurance online is better, consider the cost-saving element. The lower premiums can also make you turn towards getting life cover instantly if the cost has been a financial constraint for you.
Another way of looking at it is that you can select a higher sum assured with an online term plan for a specific premium you can afford.
Max Life Insurance offers term plans online for its diverse customer base. You can go through the plans in detail and buy plans from Max Life Insurance online with an adequate life cover.
3. User-friendly and Safe Purchase
Most individuals are aware of how to buy things online. They know how to look for the benefits of making online purchases at the right time. For them, the question – 'Why buy term insurance online?' has many answers.
First of all, the online platforms selling term insurance plans are quite user-friendly. It means even novice individuals can easily learn and get the hang of buying life insurance products. The entire user journey on such a platform is simplified in several steps, making it easier for you to follow the same.
You can start with using an online term plan premium calculator to get a premium estimate, followed by selecting the right sum assured, the policy period, premium payment tenure, and payment mode – monthly, semi-annual, or annual. You can then proceed to pay the premium online. The simplest way to understand why buying term insurance is better is by buying one to protect your family.
Safe payment processing is yet another reason why buying term life insurance online is highly preferred. While paying the premiums, you can select any secure payment options, including net banking, digital wallets, credit cards, or debit cards. The payment processing happens through secure gateways, giving you an instant payment receipt and peace of mind in abundance.
You can start with using an online term plan premium calculator to get a premium estimate, followed by selecting the right sum assured, the policy period, premium payment tenure, and payment mode – monthly, semi-annual, or annual. You can then proceed to pay the premium online. The simplest way to understand why buying term insurance is better is by buying one to protect your family.
Safe payment processing is yet another reason why buying term life insurance online is highly preferred. While paying the premiums, you can select any secure payment options, including net banking, digital wallets, credit cards, or debit cards. The payment processing happens through secure gateways, giving you an instant payment receipt and peace of mind in abundance.
How to Select A Suitable Online Term Plan?
Next to understanding why buying term insurance online makes sense, you need to know how to choose a plan for your family. Several terms define the total coverage under a term insurance plan. This is why you cannot judge a plan by its life coverage amount, policy period, or other benefits. What matters the most is its suitability for your particular needs.
If you have moved ahead of the question – 'why buying term insurance is essential,' begin the term insurance selection process with the following steps:
1. Check Your Requirements
Take the case of grocery shopping. You visit a local market and find many vendors selling different products. What will be your next step? Will you ask other buyers what they want to buy to define your needs?
This does not happen, and the reason behind it is – you know what you are looking for when you come to the market.
Term insurance purchase decisions can be covered with this analogy. When you want to protect your family in case of your unexpected demise, you know about their needs better than anyone else. That is why you should start with understanding your financial needs.
To figure out the sum assured, prepare a list of your goals, current assets, liabilities, and lifestyle expenses. This list will help you zero in on a life cover you would like to choose.
2. Select a Suitable Policy Period
When people ask why buying term insurance with adequate coverage is essential, their next question is most likely about the policy period. Choosing the right policy tenure is as critical as sum assured selection.
Ideally, you would want to get a life cover for as long as you live. Keeping the whole life insurance out of the picture, most people want term insurance protection until an age post retirement, say 65 or 70. This is also the average age of people[1] in India. If you got married late and then planned kids at a higher age, you would want to push this age for protection even further.
A simple way to decide the policy period is to consider the age post your retirement, which would be five to ten years after you end your working years. It would also be best if you realize why buying term insurance online makes sense at an early age.
When people ask why buying term insurance with adequate coverage is essential, their next question is most likely about the policy period. Choosing the right policy tenure is as critical as sum assured selection.
Ideally, you would want to get a life cover for as long as you live. Keeping the whole life insurance out of the picture, most people want term insurance protection until an age post retirement, say 65 or 70. This is also the average age of people[1] in India. If you got married late and then planned kids at a higher age, you would want to push this age for protection even further.
A simple way to decide the policy period is to consider the age post your retirement, which would be five to ten years after you end your working years. It would also be best if you realize why buying term insurance online makes sense at an early age.
3. Check the Insurer's Claim Settlement Ratio
Assuming that you buy a pure term plan with death benefits only, you would want to ensure that your family member will get the claim amount easily. After all, you choose the plan to benefit them financially in your absence.
Claim Settlement Ratio of an insurance company can tell you more about the number of policy claims settled by an insurer every year. The higher this ratio, the more reliable the insurance company is. Checking this ratio is imperative because facing claim rejection would defeat the very purpose of buying term insurance online.
Max Life Insurance has a claim settlement ratio of 99.22%, which says a lot about our commitment to serving our policyholders. You can buy plans from Max Life Insurance online as per your needs.
Frequently Asked Questions (FAQs)
Q. Should I buy term insurance online from any insurer?
A. Just like understanding why buying term insurance online is advantageous, you must know how to choose an insurance company. An insurer's selection should be based on the company's reputation, current claim settlement ratio, and term insurance plan benefits.
Q. Is price the only reason why buying term insurance online is worth it?
A. There is a difference in the premium of online term insurance and those available offline. But you should never make term insurance purchase decisions only on the price factor. It is crucial to consider a way to maximize life coverage without facing financial stress.
Q. Should I buy term insurance online without using premium calculators?
A. Using online term insurance calculators gives an estimate of the premium payable for a specific life cover. Knowing this is crucial when you need to plan how to manage other expenses while adding term insurance to the list.
Q. Why buying term life insurance at an early age is crucial?
A. The earlier you buy a term plan, the lesser will be the premium outgo. It is because you are at low risk of suffering from diseases or loss of life at a young age.
Q. Why buying term insurance is a must for individuals having dependent parents?
A. With a term plan, it becomes easier to ensure that your dependent parents will not or less face financial hurdles in life in case something happens to you unexpectedly. They can live their lives with the help of insurance coverage they will receive under the plan.
Sources
[1] https://niti.gov.in/content/life-expectancy
ARN No: Sept21/Bg/20