Term Insurance policy is one of your most basic financial needs. A term life insurance plan allows your family to live as you would have wanted them to by giving a premium. Various life insurance companies in India offer term insurance online to cater to your needs. These companies are utilising online platforms to expand the user base by offering an easy, simple, and hassle-free experience.
Term insurance is one of the most affordable and straightforward types of insurance. You can purchase the term insurance plan online or offline, but today, we will dive deep into the pros of buying term insurance online.
Features & Benefits of Buying Term Insurance Online
There’s no denying that having a term insurance plan under your name is right-thinking. The features & benefits it offers will ensure that your family keeps their lives going on whatever happens to you without any financial hiccup.
|
Features & Benefits |
Meaning |
|
Easy to Understand |
A term insurance plan, a pure life insurance policy, does not include an investing component. To provide term insurance benefits, you pay premiums, and the insurer insures your life for a set period of time. |
|
Additional Riders |
Term insurance policies have riders that can be added to the standard term insurance coverage. These add-ons can be added by paying an extra premium. |
|
Income Tax Benefits |
The premium you pay to obtain a term insurance plan is tax-free under Section 80C of the Income Tax Act of 1961, up to a limit of INR 1.5 lakh per year. |
|
Whole Life Cover Option, |
Some term insurance companies provide term insurance benefits throughout the rest of one's life, i.e. you get whole life coverage under term insurance up to the age of 99. |
|
Peace of Mind |
Not only financial security is provided through term insurance plans, but they also provide additional peace of mind. Even if the lone earning member of a family dies, the surviving family members are relieved of the financial stress. |
Is Buying Term Insurance Online Safe?
Do you intend to purchase a term insurance policy online? This section will help you with all the details. Coming back to whether buying term insurance plans online is safe or not? The answer is yes- it is safe to buy term insurance online. Purchasing term insurance online gives the following benefits:
- Information at your Fingertips: When you go online, you get all the information on the website regarding the term insurance plan that you want to buy. From eligibility to an option to add riders, you get everything.
- Securely Track Premiums: Security is one of the main reasons for online purchasing a term insurance plan. It helps you easily track policy payments, renewals, premium due dates, and other important information.
- Cost-Efficient: Buying a term plan online is cheap. You get a lot of options from different insurers, and thus, it helps you save a good amount of money.
- Compare Insurance Plans Online: One of the best features of online term insurance is comparing different insurance plans online. The comparison allows you to choose the best term insurance policy.
- User-friendly: The advanced technology assist in making a sound decision with a user-friendly journey. The simplistic outlook helps you easily buy a term insurance plan online.
How to Buy Term Insurance Online
Buying it online has become relatively easy, and we, D2C Insurance Broking Private Limited (“RenewBuy”), focus primarily on it. Follow these steps to get the best term insurance plan for yourself.
Step 1: Go to Renewbuy.com
Step 2: Scroll down and choose the "Life" category.
Step 3: Enter all the relevant details like Date of birth, Gender, Address etc.
Step 4: The following page will show you various term Insurance plans.
Step 5: Select the plan and move forward with the payment.
Step 6: Once the payment is made, the policy document will be sent to your registered email address.
Mistakes to Avoid When Buying Term Insurance Online
The following are some mistakes to avoid while purchasing a term insurance policy online:
- Incomplete Research: Incomplete information is more dangerous than having zero knowledge. You must ensure that you do your research thoroughly.
- Inaccurate information: Faulty information can lead you to choose an inadequate plan, for which you give premiums and won’t get the desired coverage.
- Not selecting the best possible rider: Riders enhance your term insurance plan by charging an extra premium. It’s important to select the best rider for your insurance policy to get maximum benefits.
- Being Underinsured: Underinsurance simply means having a low sum assured and fewer risks coverage. It’s important to avoid being underinsured so that your family gets completely covered.
- Not Buying Online: Buying online term insurance has many advantages. You can compare, get low premiums, term insurance comparisons, etc.
Claim Process Under Term Insurance
The term insurance claim settlement procedure is divided into three steps, which are as follows:
Step 1: The initial step is to notify the life insurance company. In this case, the beneficiary/nominee must submit the claim settlement form, a death certificate, and other required insurance papers.
Step 2: The term insurance company will now analyse the claim when the claim settlement form has been filed. The records are reviewed, and the insurance company requests any missing information.
Step 3: The term insurance company will approve or deny the term insurance claim based on the evaluation. If the application is approved, the insurer will deposit the money insured into the nominee's bank account.
Renewal Process Under Term Insurance
To revive your lapsed term insurance policy, you must follow the steps below.
Step 1: The first step toward renewal is contacting the term insurance company. Inform them of your decision to renew the life insurance coverage and complete the necessary paperwork to proceed.
Step 2: The second step is to pay the outstanding premium amount. Generally, life insurance companies provide a grace period of 30 days to pay the premium.
Step 3: The premium for a life insurance policy is mainly influenced by one's health and age. After your insurance coverage has expired, you may be required to declare good health.
Documents Required to Buy Term Insurance
Here are some documents needed to purchase a term plan.
|
Basis |
Documents |
|
Official Identity Proof |
Voter’s ID, Aadhar Card, Passport, PAN card, Form 60 |
|
Address Proof |
Electricity bills, Phone bills, Water bills, Municipal Tax receipt, etc. |
|
Income Proof |
Last three months' bank statements, income tax returns, latest form 16 |
|
Medical Proof |
Medical Reports(past & recent), test results demanded by the insurer. |
FAQs
Question: - Is it only the price that makes buying term insurance online worthwhile?
Answer: - The premiums for online term insurance vary from those accessible offline. However, you should never base your term insurance purchasing choice on pricing. Exploring how to maximise life insurance coverage while avoiding financial stress is critical.
Question: - Is it necessary to include riders in my term insurance plan?
Answer: - Riders are intended to enhance your coverage. While not essential, we encourage you to investigate the various add-on advantages of the term plans and select the best one.
Question: - Is it possible to buy more than one term insurance policy?
Answer: - You certainly can. It depends on whether you want to opt for a single plan or buy multiple-term insurance plans.
Question: - Can premiums increase after a certain period of time?
Answer: - This is determined by a variety of variables, including the addition of riders, the disclosure of habits such as smoking, drinking, and so on, or the declaration of a hazardous occupational nature, among others.
Question: - What is the difference between term and life insurance?
Answer: - A life insurance policy provides maturity benefits, but a term insurance plan does not and only entitles the policy holder's nominee(s) to the sum assured in the event of the policy holder's death within the plan period.
Disclaimer - The information published in this article is for the reader′s reference only. The content of this information is to provide an overview of your life insurance needs and should not be relied upon for personal, medical, legal, or financial decisions; you should consult an appropriate professional for specific advice. The Company makes no representations about the suitability, reliability, timeliness, and accuracy of the information, services, or any other items mentioned on this subject for any purpose whatsoever.