Whether you want to buy groceries or book flight tickets, you can conduct a variety of transactions online nowadays. Buying insurance is no different. Online portals have made life insurance purchase a hassle-free experience. Today, one can buy a policy within a few clicks.
In this article, we will discuss the various benefits of buying term insurance online.
A term policy is an insurance scheme which provides your family with a sum assured if you meet with an untimely demise. It is a pure life insurance policy which offers high cover at a low premium. The premiums of term insurance are primarily used to cover the death risk.
With that in mind, here are some of the advantages that term insurance offers-
- Sum Assured
If a policyholder dies during the tenure of the policy, then the beneficiaries stand to receive a sum assured.
- Low Premium
Generally, a term plan is the least expensive type of life insurance. Thus, you can buy a policy at a cheaper cost and avail a higher sum assured.
- Helps Beneficiaries Pay Off Debt
The lump sum amount received by the beneficiaries can be used to pay off debts such as home loans, children’s education loans, etc. Hence, with a term plan, a policyholder’s family might not have to face any financial liabilities.
Now that you know the advantages of term insurance, read on to find out the benefits of purchasing a plan online-
- Premium Cost
Buying term insurance online is cheaper compared to purchasing it offline. Online portals eliminate the need for an insurance advisor or a broker. Hence, resulting in the premium cost’s decline. Also, the savings from overheads make an online purchase more cost-effective.
- Policy Comparisons
Taking time out of everyday lives to visit the offices of various insurers is hectic. Hence, many don’t prefer buying term insurance offline. However, comparing policies online offers more convenience. You can access premium calculators, understand features and benefits, and read customer experiences online within a few minutes.
Buying a policy online enables an individual to make an informed decision. Meanwhile, it significantly reduces the time taken to purchase term insurance.
- User-friendly Interface
You don’t need to be a tech expert to buy a term plan online. Insurance companies have created websites with user-friendly interfaces in order to make sure the buying process is as comfortable as possible.
When you buy insurance with the help of an agent, you must rely on his/her word. Hence, he/she decides which policy you purchase. However, you should be the one making that decision. Buying insurance online gives you the power to check and compare different plans. Therefore, it makes the entire process more transparent.
- Gives Way to Investment Opportunities
Buying a policy online also results in savings. These savings can be used to invest in various investment instruments.
For example, you buy a term plan online which costs Rs. 11,000 per annum. However, the offline version of the same policy costs Rs. 20,000. The price difference of Rs. 9,000 is your savings. In order to increase your profits, you can invest this amount in mutual funds.
In conclusion, purchasing a policy online helps you make an informed decision in a short time. However, you shouldn’t ignore factors such as the cover amount, financial liabilities, a company’s claim settlement ratio, etc.