What is the Benefit of Purchasing an Online Term Plan?

Dec 06, 2018 | 6 months ago | Read Time: 3 minutes | By iKnowledge Team

With the advent of insurance aggregators, buying an online term plan has become simpler than before. An online term plan has the benefits of lower costs, and also allows the person to compare different policies at the same time.

Sandhya was looking for term insurance policies. She seeked help of a  a financial advisor who pitched a few term plans to her. Just to search for a better online term plan, she visited an insurance aggregator. She was surprised to see that the sum assured online was much higher than the one quoted by the advisor. There were also different riders available online at a reasonable rate. She put in inquiries at the insurance aggregator and got policy documents from them. After evaluating, she found a better deal online and was ready to buy term insurance online.

Insurance agents are an important link in ensuring the sale of policies. Most insurance companies have a vast network of agents selling a range of policies to people. But with the advent of the internet, and especially insurance aggregators, there is a visible shift in buying the best online term plan. In the earlier days, when there was no internet, buying insurance from an agent was the only way of getting an insurance policy. But this is not the case today.

According to a survey by a prominent insurance company, people found it convenient to buy insurance online, as evidenced by the study findings in the chart below.

Image source: Economic Times

There are a few obvious reasons why one would buy term insurance online as compared to buying it offline through a traditional agent.

Here are the benefits of purchasing an online term plan:

  1. Convenience:

One of the major reasons for buying an online term plan is the sheer convenience. There is no need to find an agent, worry about the authenticity of the plan, and get the insurance policy in place. If you want to buy term insurance, it is possible to buy it through an established insurance company. For example, Aegon Life offers its iTerm Plus plan entirely online. All you have to do is enter a few details about your income, age, sum assured and apply for the term insurance premium online. If the premium and other conditions in the brochure are acceptable to you, you can immediately buy the policy. Aegon Life’s team will process your documents and get in touch with you about the way ahead and whether any medical check is required. If you face any difficulty, you can simply request for help in filling in the details as well.

2.Comparison of different policies:

Getting a comparison of different term plans is difficult when you purchase an offline term policy. While buying an online term plan, you can compare the different policies and their features online and select the best online term plan for your requirements.

3.Time saving:

It is possible to get an online term plan approved quickly. Going through an agent requires a certain amount of back and forth and the whole process can take time. Conversely, buying an online term plan is quick and can be finished in a couple of hours once all the online documents are filled out.

4.Lower premiums:

Several costs are eliminated while purchasing an online term plan. Since the insurance company incurs lesser costs for servicing an online policy, they pass these costs to the consumer in the form of lower premiums.

5.Speedy approval of policy:

Most of the times, buying a policy online results in almost instant approval. Documents if any, are collected by the company when you purchase the policy, thus saving time for approvals.

6.Permanent online record of documents:

When you decide to buy term insurance online, you get a permanent record of your documents. There is no need to maintain a physical copy of the policy. This makes it very easy to retrieve the policy documents in case of need.

7.Direct payment to company:

While routing an insurance policy through an agent, there is always a risk of the insurance agent not remitting the payment to the insurance company. When you buy term insurance online, this risk is completely eliminated. Whatever payment is made online, it goes directly to the company, thus eliminating any risk of fraud. The company directly receives your payment and processes the insurance policy.

Ensure you invest a good amount of time and efforts in understanding your requirements and purchasing a policy that aims at fulfilling them. Besides, an online purchase of the policy will not only aid in saving time, but also ensures comfort and affordability for the buyer.

II/Oct 2018/4510

 


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