Buying Term Insurance Plans Online – A Cheaper, Effective & Hassle Free Option

by Vinaya HS on December 31, 2014

in Finance

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Buying insurance is often perceived as time-consuming and difficult. Although most of us agree with the importance of having a life insurance, the formalities can be a big turn-off. Such a cumbersome task can sometimes cause policy buyers to postpone their decision.

Let us be appreciative that we are in an age where almost no task is time-consuming or cumbersome. All thanks to the Internet. You can now look for insurance companies on the internet and buy online term insurance plans. Buying life insurance online is growing popular with every passing day where people now prefer this medium for buying and selling term insurance products.

Why buy Term Insurance?

Who needs a Term Insurance? Well, almost everyone who is earning and has dependent(s) needs a term plan. Term insurance is the most basic kind of life insurance. Here, in case the policyholder faces demise during the policy period then the family members get the sum assured as death benefit. However, if the policy holder luckily doesn’t come across such unfortunate events, and is still alive, then the insurance company wouldn’t remit any money back. Which effectively means that the nominees would earn no benefit on maturity of the policy. However, the most exciting feature of opting for a term insurance plan is it guarantees a very high sum assured for a really low premium.

Online Term Plan

For a customer who is comfortable using the internet and has some experience of having made online purchases, buying life insurance online is definitely the most convenient and most logical option. It’s fast, easy and secure – just fill in the details and make the payment through Internet Banking. Apart from the convenience, online policy is comparatively cheaper compared to the offline version and offers a very high sum assured compared to the premiums.

Every month around lakhs of people in India search for online term plans. The market of online term insurance has witnessed a constant rise since 2010. Approximately 25,000 policies are sold online every month in India. One such popular online term plan is the HDFC Life Click 2 Protect Plus offered by HDFC Life. According to a report by Boston Consulting Group and Google India, it is projected that, by 2020, three out of four insurance policies sold would be via digital channels. Sensing a growing demand for online term policies, almost all private life insurance companies have started focusing on this segment.

Benefits of Opting for Online Term Plans

Some of the advantages of buying term plans online using the website of insurance companies are:

  1. Lower premium rates
  2. Faster policy issuance process
  3. Less paperwork
  4. Crystal clear process
  5. No health / medical checkup for certain age groups

Due to high awareness levels amongst the youth, the outcome is better. In case of offline plans, there is always a possibility that the policy buyer has just signed the form, while the agent enters all the data. Online term insurance ensure that the insured himself fills in all the details accurately leaving no scope for the information could be sketchy or mistaken resulting in better quality of information.

About HDFC Life

HDFC Life, one of India’s leading private life insurance companies promoted by HDFC Ltd. & Standard Life Ltd., offers a range of individual and group insurance solutions. HDFC Life’s product portfolio comprises solutions, which meet various customer needs such as Protection, Pension, Savings, Investment and Health.

Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

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