We can’t predict our future. The only thing we can do is prepare for uncertain scenarios, keeping the financial security of our loved ones in mind. Buying aterm insurance plan is one of the essential steps to being equipped for future disasters.
At the same time, buying term plans online is becoming more prevalent today. This saves time and energy, and gives you all the necessary information at your fingertips. You can also compare insurers and then choose a term plan accordingly. Let us have an overview of term insurance and see how we can buy an online term insurance plan.
Let’s start from the basics so that we don’t have to return to square one.
Term insurance, like other forms of life insurance, is a contract between you (also called the policyholder) and the insurer wherein the insurer agrees to pay out a sum assured to your nominees in case of your untimely demise. In return, you must pay premiums for a pre-defined period that may or may not be equal to the policy tenure. This financially safeguards your family if you are no longer there to care for their needs. Life is unpredictable, and you never know what’s going to happen.
However, you need to remember that basic term insurance does not come with any maturity benefits, and the policy terminates after the completion of the tenure.
- You can get tax deductions up to Rs. 1.5 lakh under Section 80C of the Income Tax Act,1961
- You can enhance your plan with riders for critical illness, accidental death, etc.
- You can choose term plans with return of premium options, which ensures a return of all premiums paid (after applicable deductions) if you survive the policy tenure
- You can use a term plan premium calculator to determine how much you will have to pay for a specific coverage amount
Depending on your preferences, you can buy term insurance offline or online, as both ways present their advantages to the customers.
When you buy term insurance online, you will get access to various online tools and calculators, as mentioned, that will help you make the right decisions. You can also expect to find all available policy details at your fingertips instead of depending on anyone.
Bear in mind that buying a term plan online varies across the industry, and depending on your insurer, the following steps might or might not be necessary. That being said, below is a general step-by-step process for buying a term insurance plan online:
- Enter Your Details
Visit the insurance company’s official website and submit the needed information, such as gender, date of birth, smoking and drinking habits, contact information, and monthly income
- Enter the Policy Duration and Sum Assured
If you are young, choose a longer policy term; if you are middle-aged, you may choose a shorter policy term or you may go for whole life variant as per your requirement. The premium amount will also be lower at a younger age. As a result, getting a term plan at a young age is advisable.
- Select the Mode of Insurance Payout
Various policies allow you to select between multiple premium payment options. For example, it can be regular payments at your chosen frequency, a lump sum payout, or payments for a fixed tenure at selected intervals.
- Choose Riders
You can enhance the coverage of your term plan by investing a small amount in additional benefits or riders. These additional benefits offered by the insurer make your term insurance policy more comprehensive with coverage against critical illness, accidental death, disabilities etc.
- Complete the KYC Form
You must provide your name, phone number, and address. Upload your ID proof, such as an Aadhar card or PAN card. Income proof, such as tax returns; address proof, such as utility bills or a driver’s license; and age proof, such as a passport and recent photographs, are all acceptable.
- Fill Up Your Medical Information
Enter information such as weight, height, cigarette or alcohol use history, medical issues, if any, occupational hazards based on your job type, hospitalization history, and other relevant details.
- Health Examinations
The insurer may request that you undertake medical check-up to check for existing health issues if any, and accordingly decide on issuing the policy .
- Read the T&Cs Thoroughly
It is critical to comprehend policy exclusions such as death due to natural disasters, drug abuse, or terrorist activities. After agreeing to the terms and conditions, you will be transferred to the payment gateway.
- Make An Online Payment
You can pay with credit or debit cards, as well as through net banking. If your proposal is approved, you will receive an email with a soft copy of your plan. You will receive the hard copy later.
These are all the steps that you need to follow to buy term insurance online. Sounds quite simple, right? It is! Buying an online term insurance plan has now become a matter of few clicks and minutes! However, exercise caution while filling up the online application form and submitting your documents. You should ensure that there are no spelling mistakes or typos.
At the same time, be truthful about your medical condition and other lifestyle habits while calculating the premium. You should also ensure that you are comfortable with the coverage and premium amounts.
You can get guidance online on choosing the best insurance policy for your needs if required. You may also compare multiple policies regarding their features, benefits, inclusions, and exclusions. This will help you arrive at the right decision.