Due to the combination of low rates and enough high-value coverage, term insurance is undoubtedly one policy that every family should have. Furthermore, as a result of the advent of e-commerce, financial things are now available online and with remarkable ease. So, if one wishes to buy an online term plan, they may do so easily over the internet.
Purchasing an insurance term plan online is the most cost-effective method since it saves you both time and money. The reasons why buying a term plan online is easier are as follows:
Premium Cost
On average, online term plans are 40% less expensive than retail choices. Again, it is because there is no middleman in the process. In addition, because you are linked to the firm directly through their website, there is no need to pay a commission to a broker or agent. All of these costs are eliminated with an online term plan, and the provider passes the savings on to the consumer in the form of lower premiums.
Sum Assured
Purchasing an online term plan becomes significantly easier and safer due to the lower mortality risk and lower servicing costs. Here the policyholder is provided with a large sum insured for a lesser premium. The online term plans start at Rs 5 lakhs and go up to Rs 5 crores and beyond. Even though the identical policies are accessible offline, most applicants choose for a smaller sum assured due to the expensive premiums to be paid.
Disclosures
Because online plans are considered a contract between the policyholder and the company based on good faith. You must supply thorough information about yourself and your health when applying for an online term plan. Details about current and prior medical histories, personal and family health information, and lifestyle habits are all sought.
Any false information submitted on these fronts might cost you money when it comes time to settle your claim. A warning is given out instantly for questions that are left unanswered when filling out the online application, ensuring that all required data is there to one’s satisfaction. As a result, from the applicant’s perspective, there is no space for misunderstanding.
The paperwork is completed out by a broker or agent while in offline mode. As a result, certain facts are sometimes not provided honestly, and some are left blank intentionally or inadvertently. All of these then lead to claim rejection years later. There have also been instances when brokers have misled applicants to avoid what they refer to be onerous health examinations.
Customer Support
If you have any questions while filling out the online term plan form, most firms provide support lines where you may contact and get your questions answered. Even during claim settlement, one can cooperate with a pre-designated call centre to complete the task.
Most brokers use this argument to discourage customers from investing in internet schemes. They guarantee to conduct all of the necessary runnings around to complete the claim settlement. Financial experts point out that the start of the claim settlement procedure does not involve any maneuvering. All of them are ruses employed by brokers to make the procedure appear more complex.
Claim Settlement
The Insurance Regulatory and Development Authority (IRDA), the insurance regulator, has established some guidelines when it comes to claiming compensation. Insurers have six whole months to investigate and pay any claim field during the first two years. For term policies that are two years old, the claim settlement must be completed within 90 days.
As a result, whether you buy an online term plan or not, the claim settlement will be scrutinized in the same way. Furthermore, there is no evidence to date to back up the broker assertion that the number of online policies rejected at settlement is larger than the number of offline policies.
If your claim is denied despite having full disclosure of all relevant facts, then you have the option to pursue justice through an insurance ombudsman.
Why should you purchase Term Plan Online?
It is a no-brainer that you should acquire an online term plan in today’s environment. There are several arguments in favor of such choice:
- Comparison of policies is simple.
- Simplified procedure of purchasing term insurance.
- Lower
- Multiple payment options are available.
Conclusion
Purchasing an online term plan is simple, quick, and available 24 hours a day, seven days a week. Not only that, but you can be confident that you will receive the insurance paper at our doorstep, along with a soft copy through the mailbox. So, why should you go for an offline term plan? Take advantage of modern technology by purchasing a term insurance policy online.